Project Blackstone

Investment Opportunity in Coal Mining Asset

January 2016

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Summary of the Opportunity

PT Batubara Selaras Sapta (BSS), the holder of Coal Contract of Work (CCoW) for 93,000 ha in East Kalimantan, is considering to sell the majority of its ownership to potential investors.

Investment Highlights

Opportunity to invest in a coal company with high quality reserve.

Currently BSS is still in the exploration stage, which will give an opportunity to invest in a clean and debt-free company.

Legal dispute was resolved with a court decision that the current shareholders are the legitimate owners.

Access to existing hauling road and short distance to port facilities

Well-developed mining, post mining, and non mining facilities with relatively short hauling distance to the port area.

BSS is currently in a process in obtaining the permit to develop a mine mouth power plant as future plan for offtake of the mining product.

Project Blackstone January 2016

• The concession is located in Kuaro, Pasir Balengkong, and Muarasamu Districts at Pasir Regency, East Kalimantan.

• Area: 93,000 ha concession area with 63,000 ha prospective area

• Concession Type: Coal Contract of Work

• Awarded on: 20 November 1997

• Exploration: started in October 1999 covering 68,360 Ha

Concession Details

Port Facility • Stock pile; intended for coal silo facility stage I,

with capacity of 200,000 tons. • Jetty; at a distance of 20 – 37 km from the site • Coal Crusher • Barge Loading Conveyor • Weight Bridge

Infrastructures

Mining Facility • Hauling Road • Drainage System • Overburden area • Stock Pile • Weight Bridge

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Project Blackstone January 2016

No Sample

Quality

GCV TM IM ASH VM FC TS HGI

(cal/gr) (%ar) (%adb) (%adb) (%adb) (%adb) (%adb)

1 LSK-01A 7.446 5.4 2.4 6.4 41.4 49.8 3.37 60

2 LSK-01B 7.237 7.1 4.1 6.4 39.8 49.7 1.42 54

3 LSK-02 7.802 4.4 2.6 3.9 44.3 49.2 1.44 41

4 LLK-01A 5.521 7.8 2.7 26.8 31.4 39.1 0.90 72

5 LLK-01B 6.737 6.1 2.9 13.7 37.8 45.6 2.08 49

6 KRK-01 7.212 5.2 2.6 9.7 43.8 43.9 3.33 46

7 KRK-02A 7.202 4.4 2.4 9.6 42.1 45.9 3.56 48

8 KRK-02B 7.144 3.9 2.4 9.4 42.3 45.9 4.08 46

Average 7.037 5.05 2.7 10.7 40.3 46.1 2.50 52

Coal Quality Analysis

• Exploration activities were started in October 1999 covering 68,360 Ha. During 2008-2012, the exploration was further undertaken to gain more data in regards to the field conditions.

• The areas covered during the exploration were: Bekoso Block – 1,500 Ha Lempesu Block – 2,580 Ha Liburdinding Block – 2,028 Ha

• The proximate analysis of coal samples showed that the area contains high grade quality coal.

• Based on drilling results, the non-JORC reserve is 42 million tons, with average stripping ratio of 7.0x within 1,381 Ha area.

Exploration Area

Coal Seam

Resource

Measured Indicated Inferred

(MMT) (MMT) (MMT)

A 6 14 29

B 22 58 116

C 1 1 2

D 2 6 11

E 3 7 15

F 2 6 11

G 1 1 3

H 3 7 13

I 14 35 70

TOTAL 54 135 270

Liburdinding

Bekoso

Lempesu

Resource Estimation

Coal Seam

Reserve

Coal Reserve Pit Area Average Striping

(MMT) (Ha) Ratio

A 2 113 8.30

B 24 259 6.63

C 0.1 53 8.53

D 4 221 7.20

E 4 197 8.52

F 2 125 8.30

G 1 183 7.19

H 3 117 8.19

I 2 115 2.72

TOTAL 42 1,381

Overall Average Striping Ratio 7,00

Reserve Estimation

Process Consideration

This document has been distributed to a limited number of recipients approved by PT Batubara Selaras Sapta (“the Company”). In order to assist you in your preparation of a possible purchase proposal, a Management Presentation and a Data Room are being prepared. Should this opportunity be of interest to you, please provide us with a written expression of interest. Subsequently, a confidentiality agreement will be provided for your consideration. Once you have signed this confidentiality agreement you will be provided with detailed process and bid guidelines, including confirmation of the procedure and timetable for attendance of the management presentation and access to the Data Room. Please note that the Company reserves the right to alter or cancel this process at any time and in any way, without prior notice and shall not be liable for any costs incurred by participants in relation thereto. This process is being managed by PT Danareksa Sekuritas on behalf of the Company. Any questions or requests for information should only be directed to one of the contacts listed below. Under no circumstances should potential participants contact PT Batubara Selaras Sapta, any of its subsidiaries, or any of its employees directly other than the PT Batubara Selaras Sapta’s representative listed below.

This document is for information purposes only. While the information in this document has been provided in good faith, neither the Company nor Danareksa makes any representations or warranties, express or implied, as to the accuracy, reliability or completeness of the information and no responsibility is or will be accepted by the Company or Danareksa as to or in relation to the accuracy, reliability or completeness of any such information, provided that nothing in this document shall exclude any liability in respect of fraudulent misrepresentation. Neither the issue of this document, nor its contents, constitutes a proposal, offer, promise to sell or invitation to purchase any asset or interest of PT Batubara Selaras Sapta. The Company and Danareksa eserve the right to amend or replace the information in this document at any time and undertake no obligation to provide the recipient with access to any additional information. The Company and Danareksa will not be responsible for any consequences resulting from the use of this document nor will either be responsible for any reliance upon any opinion or statement contained herein or for any consequences resulting from any omission. The opportunity to which this document relates is available only to relevant persons and this document must not be acted on or relied on by any persons who are not relevant persons.

Disclaimer

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Ronaldus Mujur Head of Advisory Services

PT Danareksa Sekuritas Tel: 29 555 777

E-mail: ronaldus@danareksa.com

Project Blackstone January 2016