TBARITO O.

PROJECT

und. Backgrou
Indonesias huge reserv of thermal coal use for power plants ar being aggressively targ ves ed re geted by energyhungry China an India. Ge nd eologically, In ndonesia has far flung a s area for coal deposits, h however, economically to be pro oduced, only concentrated to tertiary basin in Su y umatra & Kal limantan islands. For Kalimantan island, majo ority product tion is in Eas & South K st Kalimantan. Y Yet, as the 3rd largest Ind donesian province, fo ollowing its neighbor provinces, Centr Kalimanta with 6.7 b n ral an billion ton co resources can be oal s, consideredasoneofthe etargetprovincesforInvestortohavei investmentin ncoalconcession.

Kalimantan n. CentralK
Geology of the Central Kalimantan province is n different from not unity of Kal limantan Geo ology. The ar was form from sediment rea med or the rock because ofsediment ba k asin and mou untain areas were formedbym metamorphic cmagmaproc cess.CoalinC CentralKalimantan wasencou unteredallovertheareahavin ngcalorificv value revolvedbe etween5,000 0to8,300kca al/kg.Thema aincoalformationsareTa anjung,Waru ukin,Ayau,Pa amaluan, PulauBalan ng,BeraiandMontalat. Currently,c coalproductio onintheCen ntralKalimantanisstillwa asverysmall ifcompared withthelevelofthe coalproduc ctionthatisproducedbyit tsneighborprovince:Sout th&EastKalimantan.

Barito.
As confirme from Min ed nistry of Ener and Mine Resource rgy eral es Republic o Indonesia based o of a on prelimina ary study & investigation, the distr rict wise coal distributio in Central on Kalimantan asfollows:M MurungRaya (28%),Barito oUtara(26% %), Barito Tim mur (3%), Barito Selatan (23%), K Kapuas (12% %), KotawaringinBarat(6%) ),Kotawaring ginTimur(0.2 26%),Katinga an (0.26%),GunungMas(0. .32%).

TheProject.
The Project is consisting of 3 coal concessions which 2 g concessions (AUB & AU are loca US) ated in Barit Utara to District,whil letheother( (TMBJ)isloca atedinBarito oSelatan District (bord derbetween BaritoUtara andBarito Selatan). a AUB&AUSi isownedbys samegroupo ofshareholde ers,while TMBJ is ow wned by a d different gro oup of share eholders. Distance bet tween AUB a AUS is a and about 1.75 km while m, betweenAUSandTMBJis sabout1.65km. etail explorat tion; while TM still MBJ, AUB & AUS had done de needtodomoreactivit tyinexplorat tioninorder rtoget proper mine plan. Most of the area in these 3 co t oncessions is Production Forest area, the need of Forestry s Permit(IPPK KH)iscompulsory. DatayuKa apital|Projec ctBarito|Page1of3

 For infrastructure, currently there are 2 options for hauling road & port that are ready to be rented. Additional capital expenditure for choosing these options is building connecting hauling road, which is approximately5km.Meanwhileforbarging,thedistancewillbearound300400kmtoTaboneoAnchorage.

TheResources.
From the 3 concessions: AUS, AUB, TMBJ, the Project has 9,342 ha of total area with estimated total resourcesupto139milliontonofcoal,andtheestimatedrangeofcoalqualityasfollows: TotalMoisture :23.825.5% InherentMoisture :12.516.0% Ash :1.37.8% VolatileMatter :39.440.6% FixedCarbon :35.441.3% Sulphur :0.21.8% GrossCalorificValue :5,3336,537Kcal/kg
NO CONCESSION OWNER DISTRICT ACREAGE (ha) RESOURCES (mt) GrossCV inaverage C&C Status REMARKS Areafully&detail explored Areafully&detail explored Only175Ha explored

1 2 3

AUB AUS TMBJ

BaritoUtara BaritoUtara Barito Selatan

3,211 4,959 1,172 9,342

108,810,476 23,402,568 6,864,257 139,077,301

5,352(adb) 5,952(adb) 6,537(adb)

Clean&Clear Clean&Clear Clean&Clear

AUB&AUSresourceswerecalculatedfromthewholeconcessionareaanddetailexplorationactivitieshad conducted referring to Indonesian National Standard (SNI) moderate method. For the moment, TMBJs estimated total resources stated above was obtained from the interpolation calculation of 175 ha area resources(15%oftotalarea).

TheProjectReadinessforProduction.
a. For mining licenses, the Project has completed all the licenses and requirements, since all of the 3 concessionsalreadygettingIUPOperasiProduksilicense. b. Forforestrylicenses(IPKKH),AUB&AUSisinthestageofGovernorRecommendationprocess,which is the IPPKH is estimated will be finished in the end of 2012. While TMBJ is already in process at ForestryMinistry. c. Fortechnicalissues,onlyTMBJ that needstododetailexplorationtothewholeareas,tofacilitate moreaccuratepotentialityandtoprepareminedesign. d. ForInfrastructure,thereareoptionsforInvestortoacceleratingproductiontimeandreducingcapital expenditures,becausethereare2optionsforrentingtheinfrastructure(haulingroad&port).Both optionshaulingroaddistanceisaround3545km.Whilethefirstoptionportcanbeaccessedwith 270feetbargeandthesecondoptionportcanbeaccessedwith300feetbarge.

DatayuKapital|ProjectBarito|Page2of3

TheProjectCommercialSchemes.
1. TotalacquisitionfortheProjectisUSD43,500,000,withcompositionof: a. AUSandAUBacquisitioncostareUSD39,000,000for100%takeover. b. TMBJacquisitioncostisUSD4,500,000for100%takeover. 2. Transactionprocess: a. SendLetterofInterest(LoI).

b. PreDue Diligence (PreDD) process, so Investor can have initial desktop study (NDA agreement required). Namely AUS and AUB, this PreDD process will also be used to determinecounterpriceofferfromtheInvestor. c. Exclusive MoU with refundable commitment money. After the MoU, the project will be closedforotherinterestedinvestorswithintheperiodofDD. d. TwomonthsdetailDueDiligenceforlegal,financial,taxandtechnicalincludingsitesurvey. e. Conditional Sales Purchase Agreement with 20% down payment (minus commitment money). f. For AUB & AUS, after the governor recommendation acquired, additional 30% installment mustbepaid. g. SalesPurchaseAgreementwithadditionalinstallmenttofulfillthetransactionpayment.

AdditionalCapexforTheProject.
ThemajoradditionalcapitalexpenditurefortheProject,withtheassumption,iftheInvestorchoosestorent theinfrastructure,willbefor: 1. Building connection road between 3 concessions which in total will be around 3.5 km connection road. 2. Buildingconnectinghaulingroadtotherentedmainhaulingroad,whichintotalwillbearound5km. 3. ParticularlyTMBJ,additionalcapitalmustbespentforhavingdetailexplorationactivity.

Disclaimer: The foregoing has been prepared on the basis of the information obtained from the concession owner. It is not intended to be a solicitation for the transaction described therein, and the interested parties should conduct their own due diligence into the information and affairs of the concession owner.

DatayuKapital|ProjectBarito|Page3of3