ANTAM’S GOLD & SILVER PRODUCTION FROM UPSTREAM TO DOWNSTREAMANTAM’S GOLD & SILVER PRODUCTION FROM UPSTREAM TO DOWNSTREAM PT Antam (Persero) Tbk. PT Antam (Persero) Tbk, (ANTAM) is a vertically integrated, export-oriented, diversified mining and metals company. With operations spread throughout the mineral-rich Indonesian archipelago, ANTAM undertakes all activities from exploration, excavation, processing through to marketing of nickel ore, ferronickel, gold, silver, bauxite and coal. The company has long term loyal blue chip customers in Europe and Asia. Due to the vastness of the company's licensed exploration areas as well as its known large holdings of high quality reserves and resources, ANTAM has formed several joint ventures with international partners to profitably develop geological ore bodies into profitable mines. The company generates healthy cash flows, and has prudent capital management. The company became a limited liability state-controlled company in 1968 with the merger of several single commodity mining companies.|In 1997, the company conducted an initial public offering (IPO) and listed its shares on the Indonesia Stock Exchange and 35% were sold by the government to the public, to raise money for a ferronickel expansion. In 1999, ANTAM listed its shares in Australia as a foreign exempt entity and then in 2002 augmented its status to the more stringent ASX Listing.ANTAM's objectives are centered on increasing shareholder value. The company's main objective is to enhance shareholder value by lowering costs while profitably expanding operations in a sustainable manner. The strategy maintains focus on ANTAM's core business of nickel, gold and bauxite with a view to maximizing output in order to increase cash generation and lower unit costs. ANTAM plans to sustain growth through reliable expansion projects, strategic alliances, increasing quality nit his reserves and adding value by moving away from selling raw materials and increasing processing activities. ANTAM will also maintain financial strength. By generating as much cash as possible ANTAM ensures it will have sufficient funds to repay debts, finance continued growth and pay dividends. Lowering costs means operating more efficiently and productively, as well as increasing capacity to benefit from economies of scale. As a mining company, ANTAM realizes its operations have a direct impact on the surrounding environment and nearby communities. Enviranmental sustainability and community development are not viewed merely as being socially responsible, but also as risk management. The characteristic of mining in Indonesia is that it plays a big role in the development of remote areas and so given the mine's large role in community development it is crucial to operate not as an outsider but as a member of the community and a good corporate citizen and thereby reduce the likelihood of business interruptions. ANTAM believes environmental sustainability and proactive community development are necessary to successfully operate a mine. Serious attention to natural conservation efforts and proactive participation in community development are one of the keys to successful mining activities.ANTAM makes its cash by exploring and discovering mineral deposits, extracting them and processing them as economically and correctly as possible and selling them to long term loyal customers in Europe and Asia. ANTAM has been doing this profitably since its inception in 1968 and plans to continuing doing this for many years ahead. ANTAM's main products are ferronickel, gold, silver, and alumina. ANTAM's main services are precious metal refining and geological services. Tenge BIC g eee)Gold and Silver to ANTAM ANTAM's main gold and silver production is sourced from its underground gold mines at Pongkor, West Java and Cibaliung, Banten. Indications of gold deposits at Pongkor were discovered by ANTAM's Geology Unit in 1981, and production commenced in May 1994 -@ ge after ANTAM secured the mining license in 1992. The Cibaliung gold mine was acquired in 2009 from an Australian company, Arc Exploration and began to operate in 2010. The Cibaliung mine is operated by ANTAM's subsidiary, PT Cibaliung Sumberdaya. ANTAM also owns 25% of PT Nusa Halmahera Minerals which operates the Gosong mine in North Maluku. At the beginning of June 2013 ANTAM received an extension of forest borrow and use license for Pongkor gold mine until 2021. As of December 31,2012, ANTAM's gold reserves and resources amount to 9.4 million dmt with contained gold metal of 1.6 million ounces. Meanwhile, As of December 31,2012, the Gosowong mine has 9.3 million dmt gold reserves and resources with contained gold metal of 3.6 million ounces. Antam also owned minority shares in some of gold mining companies: - PT Sumbawa Timur Mining 20% - PT Pelsart Tambang Kencana, Kaltim 20% - Gorontalo Minerals 20% The Pongkor gold mine is operated by the Gold Mining Business Unit, whilst the Cibaliung mine is run by ANTAM’s subsidiary, PT Cibaliung Sumberdaya.Mine Operation and Processing Plant The Pongkor mine has three primary veins of gold, all of which are currently being mined: Ciguha, Kubang Cicau and Ciurug. A conventional cut and fill stoping mining method is used at Ciguha and Kubang Cicau with tailings as fill. A mechanized cut and fill method, with hydraulic jumbo drill and load haul dump (LHD) is used for Ciurug. The Cibaliung underground gold mine is operated with cut and fill mechanized methods. The Cibaliung mine has two primary veins of gold: Cikoneng and Cibitung. Following ore mining at Pongkor and Cibaliung, the mined ore is further processed using the cyanide process to be followed with Carbon-In-Leach (CIL) process, elution and electro-winning. The processed material is dried and smelted to produce dore-bullion. Dore bullion is then transported to the Precious Metals Processing and Refinery Business Unit (Logam Mulia) until to be processed further to pure gold and silver.The waste is processed at the detoxification plant to reduce the cyanide content of tailings to below the threshold limit value of 0.5 ppm, so that it can be safely used as a total tailing backfill system in combination with cement. Pongkor Gold Processing Flowsheet As both of ANTAM’s gold mines are underground, gold production depends upon the production of gold ore combined with the gold grade of the mined ore as well as the condition of the mining front. Although ANTAM can manage the production volume of the gold ore, the gold grade is an uncontrollable factor and will fluctuate. As well, soft wall condition in the tunnels requires reinforcement and may impact production of gold ore. Pongkor’s gold production ranges between 1,500-2,000 kg (48,226-64,301 oz) annually. Cibaliung production ranges between 800-1,500 kg (25,72 1-48,226 02) of gold annually. ‘Antam’s Gold Production Anlam’s Siver Production bhhd Dy». inl Antam's Gold and silver productionLogam Mulia (Precious Metal) Processing and Refinery Pir] Precious Metal refinery ANTAM’s Precious Metal Refinery, Logam Mulia, refines the dore bullion from Pongkor and Cibaliung Gold Mine into fine gold as well as fine silver as the by-product of the refinery process. Logam Mulia’s fine gold and fine silver products are in accordance with international standard purity of 99.99% of gold and 99.95% of silver respectively and are certified by the London Bullion Market Association (LBMA). Logam Mulia has the capacity to produce 85 ton (2.6 million toz) of internationally accredited gold per year and 240 ton (8 million toz) of silver per year. Besides refining ANTAM's own dore bullion from Pongkor and Cibaliung, Logam Mulia also provides refining services to third parties, which are all gold mining in Indonesia, and its contribute to Logam Mulia's income.Up to a certain condition, there are more than 10 gold mining and scrapes produces become customer, that refined their gold in Logam Mulia. Logam Mulia was established in 1930 by a Belgian gold trader, named RT Braakensiek. In 1937 the factory settled in di Jalan Gajah Mada No. 84, Central Jakarta and refined gold scrapes and impure gold from mine, Bengkulu and Cikotok. In 1949 become a legal company, NV Essaieur en Affinage Bedrijf v/h RT Braakensiek. Therefore, in 1957 company was handled over by Ban Industri Negara and change it’s name to PT Logam Mulia (Logam Ltd).AT the first of 1961 according to PP No.281/1961, company chane its name become PN Logam Mulia. Since December 31st, 1974 according to Government Regulation PP No.320/1974 become a subsidiary of PT Aneka Tambang (persero) and it’s name Unit Pengolahan dan Pemurnian Logam Mulia (Precious Metal Processing and Refinery). Since April 1st, 1979 it’s factory settled down in at Pulo Gadung, East Jakarta, up to a certain condition. Main business lines of Logam Mulia are Refining, Manufacturing, Assaying and Trading. To refine dore bullion (impure gold) from all of gold mining in Indonesia, Logam Mulia has capacity of 85 tons of gold and 240 tons of silver.Current production are 40 tons of gold (999.9) and 100 tons of silver (999.5), it is mean that Logam Mulia has idle capacity. Other metal such as platinum and palladium produce as by product, but still in small quantity. Manufacturing produced standardized and customized precious metal (gold, silver, platinum, palladium, alloys): - Fine gold minted bar, 99.99%, 1 to 100g - Gold alloy (with silver, palladium, copper, etc), EK24, EK22, EK20, EK18 - Gold medals, jewelerlies - Platinum labwarePT ANTAM (Persero) Tbk. LOGAM MULIA PRECIOUS METALS PROCESSING ed aaa aU Sue TO CC mry Pulogadung, Jakarta 13010, Indonesia ieee) s ary Seva te Pe EYAL icy 6221-47863043, +6221-4750665 Ce Soe Pelee) Pe eee ei Pa OUT te} Cree hy ie