Kratos Energy Ltd

PT Arindo Antrasit Coal Concession – Paser

DD and Resources Estimation - Proposal

BENCH MARK, COLLAR AND TOPOGRAPHY SURVEY

FOR PT TANJUNG AIR BERANI
PROPOSAL

Prepared by:

PT BHUMI SAPROLITE INDONESIA

For:

PT. TANJUNG AIR BERANI

December 2018

GR1841/Prop-01/SURV&GT-PTTI/10/XII/2018
 PT Tanjung Air Berani
Tanjung Balai Karimun – Riau
Survey, Geotech & Hydro - Proposal

1. INTRODUCTION

PT Tanjung Air Berani (PT.TAB) intends to conduct the exploration and

development for KCMI/JORC Resources and Reserves Statement Report at their
bauksit concession at Tanjung Balai karimun, Riau Province and asked for proposals
from mining consultant who has believed the ability trusted to field works for
exploration to be used for Resources & Reserves Report.

PT Bhumi Saprolite Indonesia (PT.BSI) was given the opportunity to provide

services independently and supported by third parties who will support the drilling
crew and activities, PT.BSI will undertake the Bench Mark, Topography & Collar
Survey, Geotechnical & Geohydrological Study, Laboratory Analysis included QA/
QC Accordance to KCMI 2017 or JORC 2012 Code.

The services from PT.BSI included all technical staffs/crew, equipments and
Laboratory. The Technical Staff will supervise the Geotechnical Drilling, Hydrology
and Hidrogeology in the field also the survey for Bench Mark, Collar and
Topography. The Drilling Crew and Drilling Equipment will be provided by Client.

2. SCOPE OF WORK

Development of this project for this stage will be undertaken as Desktop Study,
Drilling Supervision and Reporting. PT.BSI also will go to the site for site visit to do
the data validation and verification.

Scopes of work to be undertaken by PT.BSI are following below:

I. SURVEY
1. Mobilisation/Demobilisation
2. Bench Mark Installation for 2 points
3. Collar Survey for 222 locations
4. Topography Survey for 300 Ha
5. Data Processing
6. Operational & Consumable
7. Reporting

GR1841/Prop-01/SURV-GT-PTTI/11/XII/2018 Page 1 of 4
 PT Tanjung Air Berani
Tanjung Balai Karimun – Riau Survey,
Geotech & Hydro - Proposal

3. BUDGET AND DURATION

Based on the Scope of work above, PT.BSI arrange the budget for all elements
as follows:

3.1. SURVEY

NO SURVEY ITEM QTY RATE/ITEM SUB-TOTAL (IDR)

1 Mob/Demob Crew & Equipment day 2 17,500,000 35,000,000
2 Bench Mark Installation 2 points point 2 5,000,000 10,000,000
3 Collar Survey location 30 650,000 19,500,000
4 Topography Survey with 10 Control Points Ha 300 250,000 75,000,000
5 Data Processing Ha 300 30,000 9,000,000
6 Operational & Consumable Day 4 3,500,000 31,500,000
7 Reporting set 2 3,000,000 3,000,000
Sub-Total (IDR) 183,000,000

GRAND-TOTAL (IDR) 183,000,000

The budget is based on the several assumptions below:

1. Collar Survey will be conducted on the 100 locations of old (previous) drillholes
with spacing until 50m x 50m and 25m x 25m and on the 30 locations of new
drillholes with spacing until 100m x 100m;

2. All the drillholes locations that will be surveyed must have the peg and the
representative of Client must guide the Surveyor to find the existing drillholes
location in the field;

3. Topography will cover around 300 Ha consists of 30 Ha of old Test Pit area.

4. Survey activities will be completed in nine (9) days subject to the existing collar
location, social issues and extreme weathered. Any additional duration due to
all those reasons, The Operational & Consumable Costs for survey will be
charged to the client in daily basis;

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 PT Tanjung Air Berani
Tanjung Balai Karimun – Riau Survey,
Geotech & Hydro - Proposal

3.3. Payment Term

The payment term will be scheduled for every Stage as follow:

A. SURVEY
1. 50% Down Payment will be invoiced prior to commencing the work;
2. 30% Second Payment will be invoiced after Field Work completed;
3. 20% Balance Payment will be invoiced after send the Report

The down payment must be received prior to commencement of the work and
subsequent invoicing payment is to be made within 14 calendar days upon receives
the invoice.

Late payment will be charged a penalty 0.25% per-day of the total invoiced.

The offer is valid for 30 calendar days from date of the submission.

3.4. Project Duration

A. SURVEY
1. Mob/Demob : 2 Days
2. Field Work : 4 Days
3. Data Processing : 3 Days
4. Reporting : 2 Days

GR1841/Prop-01/SURV-GT-PTTI/11/XII/2018 Page 3 of 4
 PT Tanjung Air Berani
Tanjung Balai Karimun – Riau Survey,
Geotech & Hydro - Proposal

In witness, hereof the parties to this agreement have caused their duly authorized
representative to execute this agreement in duplicate copies, each of which shall be
deemed an original on this ___ day of December 2018

Signed for and on behalf of Witness of

PT TANJUNG AIR BERANI PT BHUMI SAPROLITE INDONESIA

By : ………………………… By : ……………………………

Title: ………………………… Title : ………………………….

………………………………… …………………………………
Signature Signature

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