Geo Energy

Geo Energy: Company entered into a conditional sales & purchase agreement for its 5th mine concession in 2013. The agreement was for an acquisition of 97.9% interest in the capital of PT Surya Tambang Tolindo. This new concession, spanning a total concession area of 4,600 hectares, is estimated to contain higher calorific value coal of 7,200 kcal/kg (GAR) and semi-coking coal, expanding the Group’s range of production. On the previous four concessions which the group entered on 25 Feb: four mining concessions in Kutai Barat Regency, East Kalimantan. Each of the four options to purchase agreements, when converted, will result in Geo holding an aggregate of 93% interests in the 4 mining concessions in East Kalimantan totaling 21,377 ha. These 4 target companies have not commenced coal production and are currently loss-making. The Group previously stated its intention to continue to enter into suitable coal mining arrangements with other third party sources to gain access to new concession areas in order to expand its operations. All 4 mining concessions will be bought from Gold Lion Resources Ltd- an investment holding company incorporated in the British Virgin Islands and its sole beneficial shareholder is Mr Kandhy Haribowo. The independent technical reports for i) PT Bomboy Central Prima Coal and ii) PT Karya Permata Prima; (iii) PT Kencana Wilsa; and iv) PT Central Coalindo Utama are estimated to be completed in July, August and September 2013, respectively. All the five potential mine concessions are situated in areas neighbouring the Group’s current BEK mine in East Kalimantan and will allow the Group to synergise its upcoming operations to cater to its operations in the aforementioned mining concessions.