HOW TO MANAGE EXISTING OPERATION

WITH RESOURCES DEVELOPMENT

Amiruddin Hasyim – Deputy Operations Director

Denny Lesmana – Deputy General Manager Planning & Production

International Underground Mining Conference

Jakarta, 24 – 26 March 2021
A Fully permitted site
Kontrak
Main Key Permits
▪ Contract of Work (“CoW”) amendment signed 25 Jun 2018

Karya
▪ Divested to PT Indotan Halmahera Bangkit (PTIHB) from The
Newcrest Mining Limited for all shared (75% share);
while PT ANTAM kept for 25%
▪ Approved RKAB 2021 (annual work plan)
▪ Approved AMDAL 2019 (environmental impact permit)
Valid until the change of operations
▪ Finalised FSA4 feasibility study
▪ 5 -Year CDE –Social performance plan
▪ P3 P2 P1 explosives permit

Key land permitting factors

▪ Block 1 is fully permitted ground and ready for exploitation
▪ Block 2 is permitted as exploration ground with several defined targets

Awards
▪ 2nd winner of ASEAN Mineral Awards in 2017
▪ Blue category in environmental compliance (2011-2019) from KLH and IMA
2020
▪ Trophy Award of Technical Supervision, MEMR, 2020
▪ Gold Award on Mining Safety, MEMR, 2020
▪ Bronze Award on Environmental Management, MEMR, 2020
Gosowong is located in the richest epithermal search space in the world with a strong
track record of discovery and execution

Gosowong
(7.15 Moz)

Source; S&P Global

Note; ¹HSE (High Sulphidation Epithermal mineralization). ²LSE (Low Sulphidation Ephitermal mineralization), ³ISE (Intermediate Low Sulphidation Ephitermal mineralization), IRG (Intrusion Related Gold),
⁴IOCG (Iron Oxide-Copper-Gold), ⁵VMS (Volcanogenic Massive Sulphide). Cummulative Au Gosowong discovered as at December 2020
Understanding the district geological setting
Geology
▪ Economic gold mineralization in low-sulfidation epithermal deposit type quartz vein structures
▪ Occurs within a sequence of tertiary volcanic and intrusive rocks overlain by Quaternary age volcanic cover
▪ Gosowong system appears to be associated with an extensive area of strong hydrothermal alteration, approximately 11km long
and 4km wide
▪ Gold occurs within the quartz vein structures, varying from solid vein/lode to breccia containing both wallrock and quartz vein
clasts, to stockwork or sheeted veins, to fracture fill, cavity fill or as clasts within a fault

▪ Porphyry style mineralization has been found in the district and showing potential for future exploration
Gosowong Exploration Strategy to Date
❑ The discovery of the Gosowong Goldfield resulted from ‘green field’ exploration in a region with no previous history of mining

❑ A history spanning more than 20 years of exploration, discovery and mining resulting in a constantly evolving understanding of the
geological, geochemical and geophysical characteristics

Traditional exploration search space within goldfield New exploration search space outside of goldfield
Mineral Resources and Ore Reserve
Mineral Resources and Ore Reserves as at 31 Dec 20

Mineral Resources (includes of Ore Reserves )

Estimation methodology

Category Tonnes Au grade Ag grade In-situ Au In-situ Ag Mineral Resources

(Kt) (g/t) (g/t) (Koz) (Koz)
Measured - - - - - ❑ Mineral Resources estimates have been prepared
under the direction of a qualified person in
Indicated 5,053 6.0 10.1 974 1,647
accordance with JORC 2012
Inferred 447 5.9 9.2 85 132 ❑ Mineralized domains were estimated based on
geological interpretation
Total 5,449 6.0 10.1 974 1,647 ❑ Statistical analysis of drilling data was performed in
order to apply modifying factors
❑ Variography was used to analyze special continuity of
gold grades
Category Tonnes Au grade Ag grade In-situ Au In-situ Ag ❑ Block grade estimation utilized ordinary kriging and
(Kt) (g/t) (g/t) (Koz) (Koz) variogram models for each geological domain

Proved Ore Reserves

- - - - -
Probable 2,281 5.75 7.17 422 526 ❑ Ore Reserves are estimated based on conventional
engineering practices after applying technical and
Total 2,281 5.75 7.17 422 526 economic modifying factors to the Mineral Resources

High degree of historical Resource to Reserve conversion, Resource model currently being updated for recent drilling
A proven track record of discovery
7.15 Moz of high-grade gold, with significant opportunity for mine life extension

Deeper Exploration search space

Toguraci
Underground 2009

Shallow exploration search space

Kencana
2002
Gosowong Toguraci
1994 2000

Strong foundation –track record of discovery and incremental growth

 Kencana UG Overview

❑ A top down Underhand Cut and Fill (“UCAF”) method is used

❑ This method is reliable and suitable for high-grade ore hosted in poor ground conditions
• Open stoping no longer used following a geotechnical event in 2016

❑ Key benefits of UCAF include:

• Safe with high ore selectivity
• Highly flexible
• Low dilution and excellent recovery rates

An established and understood underground mine with a consistent history of high-grade production
UCAF Mine Sequence
Kencana UG mining conditions and mining strategy
Support Strategy
Mining Conditions
❑ Mining and ground support strategies have been
Kencana is characterized by narrow high grade ore developed that suit the geotechnical conditions with:
veins hosted in a structurally complex settings with: • UCAF mining method employed
• Weak rock masses • High quality cemented paste fill utilised
• Weak mudstone layers • Ground support systems matched to the ground conditions
• Argillic alteration
❑ Current mining team highly experienced operating with the
Kencanaground conditions
Kencana UG Mine Sequence
 Toguraci UG Overview

❑ Subvertical high-grade deposit with relatively good ground conditions

❑ Employs conventional Long-Hole Stoping (“LHS”) with paste backfill, a narrow vein mining method allowing for good recovery
and low dilution
❑ Key benefits include:
• Safety
• Bulk mining at lower cost (compared to UCAF)
❑ Key issues:
• Hot ground water at 80ºC, managed by an underground borehole & submersible pumping system, supporting main underground
pumping stations delivering water to surface

An established and understood underground mine with a consistent history of high-grade production
Toguraci UG mining conditions and mining strategy
Mining Conditions
❑ Toguraci is characterised by narrow high grade
ore veins hosted in structurally complex settings
with:
• Rock mass typically fair to good
• Some areas with poor ground conditions (argillic
alteration)
• Hot ground water
Primary pump station
Support Strategy
❑ Mining and ground support strategies have been
developed that suit these conditions:
• Dewatering programs to lower the water table below
the current mining levels
• Narrow vein Stoping and Cut and Fill mining methods
used in conjunction with paste fill
• Ground support systems matched to the ground
conditions
Bore hole pump
Toguraci UG Mine Sequence
Exploration Program
Kayasa formation

The focus since 2015 has been on a new

search space beneath the
KayasaFormation cover

❑ Detailed work conducted on the

Gosowong outflow zone provided a new
exploration model for exploring the
KayasaFormation.
❑ Five priority areas with several
prospects have been outlined for future
explorationincluding Sesewet,
Ngailamo, Upper ImurNorth, Matatand
Diun
❑ Key objectives:
1. Discover fertile gold structures
2. Define the ore shoots within
fertile structures

An updated interpretation of the regional geological setting anticipated to yield exploration upside
Toguraci Porphyry target
The surface exposed porphyry Cu-Au resource
in Toguraci and Tobobo

Toguraci Blue Sky Potential Resource:

TPD001 376.6m @ 0.23g/t Au, 2.1g/t Ag, 0.35% Cu, from
215m
Incl. 21.5m @ 0.64g/tAu, 3.1 g/t Ag, 0.56% Cu, from 390.5m
Gosowong Potential Additional Resources
Exploration Schedule