P T G M T I n d o n e s i a

nd
Jl. TB Simatupang Kav. 1S, 2 Floor
Cilandak Timur, Jakarta, 12560
Phone : +62 21 782 4677 / 8, Fax: +62 21 782 4679

COAL PROSPECT DATA SHEET

Prepared for Kalimantan Gold Corporation Limited
Prospect Name : PT Central Indo Coal

Country : Indonesia Province : East Kalimantan

Latitude (WGS84) : S 00° 46' 02" Commodity (s) : Coal
Longitude (WGS84) : E 116° 51' 53" Style : Sedimentary
Company : PT Central Indo Coal Age : Tertiary
Licence : KP Exploration Setting : Kutai Basin

Prospect Overview : The concession area covers 5,000 hectares and is located immediately along
strike from the producing PT Multi Harapan Utama PKP2B concession area, which
produces approximately 2.5Mt/annum of 6,400 kcal/kg coal. The resources in
Multi Harapan stand at approximately 120Mt.

The Central Indo Coal concession can be reached via provincial sealed roads
from Balikpapan, then by logging roads and mining haul roads from the main
highway. Balikpapan can be reached by commercial airlines from Jakarta on
several flights each day.

Prospect Geology : The geology of the concession area comprises Balikpapan, Pulaubalang and
Pamaluan Formation sediments and it is situated close to the nose of a major
syncline in the area. Most of the sediments dip variably, depending on the position
within the structures, of between 10-60°. Coal seams are known in all three
formations, with the Pamaluan Formation coal seams ranging up to 1.5 metres in
thickness and have a very high calorific value (+6,800 kcal/kg) ranging to coking
coal in part. The Pulaubalang Formation coal is considered good quality with a
calorific value of between 6,000-6,500 kcal/kg whilst the Balikpapan Formation
coal is generally sub-bituminous with a calorific value of approximately 5,300-
5,600 kcal/kg.

The various formations, from oldest to youngest, are described as:

The Pamaluan Formation comprises alternating sandstone and claystone,

intercalated with limestone. The foraminifers identified are Orbulina Universa,
Globigerinoides sp., Pelatispira sp. and Cycloclypeous sp., which indicates an
Oligocene to Early Miocene age. The Pamaluan Formation was deposited in
neritic environment. The thickness of the unit is betwen 500-700 metres. The type
locality is at the Pamaluan village, 30 kilometres north of Balikpapan, East
Kalimantan.

The Pulaubalang Formation consists of alternating quartz sandstone, sandstone,

claystone and greywacke with limestone and coal intercalations; coal lenses are
up to 4 metres in thickness. Thin layers of andesite-basalt tuff also occur. The
limestone contains large foraminifera. White dacite tuff can also occur as thin
intercalations in the quartz sandstone. The thickness of this formation is
interpreted to be up to 2,500 metres and is folded with dips between 25°-60° and
a general northeast-southwest strike. This formation conformably overlies the
Pamaluan Formation and is conformably overlain by the Balikpapan Formation.
Microfossils indicate deposition during the Early to Middle Miocene in a shallow
marine, sub-littoral, possibly pro-deltaic environment.

The Balikpapan Formation comprises quartz sandstone and claystone with

intercalations of siltstone, shale, limestone and coal. The quartz sandstone is fine
to medium grained, well sorted and has iron oxide and lignite intercalations. The
calcareous sandstone contains small foraminifera whilst sandy limestone contains

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 P T G M T I n d o n e s i a
nd
Jl. TB Simatupang Kav. 1S, 2 Floor
Cilandak Timur, Jakarta, 12560
Phone : +62 21 782 4677 / 8, Fax: +62 21 782 4679

larger foraminifera and molluscs. Fossil evidence indicates a range from Middle to
Late Miocene age for the formation in a deltaic to littoral and shallow marine
environment. The formation has a thickness of approximately 1,800 metres with
fold dips commonly between 35-50° and unconformably underlies the
Kampungbaru Formation.

History : Little exploration has been carried out on the property and the due diligence
period should allow a significant mapping component. The formations outcropping
within the concession area are all known to be coal-bearing, with a range of coal
qualities, seam thicknesses and dips.

The presence of the concession along strike from the Multi Harapan concession
adds to the prospectivity of the area as the target formations within the concession
area are the same as those currently being exploited in Multi Harapan.

Tot. Inherent Volatile Fixed Total Calorific Calorific

Type Ash
Moisture Moisture Matter Carbon Sulphur Value Value
As Air dried Air dried Air dried Air dried Air dried Gross as Air dried
received basis basis basis basis basis received basis
% % % % % % kcal/kg kcal/kg
Awaited

Direct Testing Yes/No Number / Metres

Diamond Drilling :
Open Hole Drilling :
Outcrop Samples :
Trenching :
Other :
? Not known
? Not known
Y Analyses unknown
N
N

Mineral Inventory Total

Resources : Nil
Reserves : Nil
Depleted : Nil

Additional Data Comments

Geological Mapping : Preliminary mapping has been conducted
Structural Data : Structural data has been collected during initial mapping
Petrological Data : Nil
Remote Sensing : Not analysed to date
Geophysics : Nil
Interpretations : Preliminary mapping interpretation

Infrastructure and Development : The area around the Central Indo Coal concession is well established
as a mining centre and a number of options could be considered for development, including hauling
southwards to the Balikpapan bay area or northwards to the Mahakam River. River side sales could also be
considered to start an early cash flow but if the concession contains significant resources of coal then a
trans-shipment operation would return the greatest value on the coal.

A haul road and barge loader would be required in either area (Mahakam or Balikpapan) or shared facilities
may be considered.

The target size for the lease area is +10Mt of high calorie coal and a production rate of 1.5Mt/annum. If
these targets could be achieved, the cash flow at the present prices for high calorie coal would be attractive
for an incoming investor. The primary exploration would be detailed mapping and drilling, including deeper

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 P T G M T I n d o n e s i a
nd
Jl. TB Simatupang Kav. 1S, 2 Floor
Cilandak Timur, Jakarta, 12560
Phone : +62 21 782 4677 / 8, Fax: +62 21 782 4679

stratigraphic drilling to determine the coal-bearing stratigraphy.

Qualified Person
All data, as disclosed in this data sheet, has been verified by Brett Dennis Gunter, the Company’s
Qualified Person for the coal prospects and a principal of PT GMT. Mr Gunter, who acts as a
technical consultant to the Company, is a geologist with over 18 years experience in exploration
and mining and has more than 12 years experience in Indonesia in various commodities, including
coal. He is a member of the AusIMM.

The exploration “targets” referred to in this data sheet is a conceptual target only and does not
constitute a Mineral Resource estimate that complies with the standards prescribed by the JORC
Code or National Instrument 43-101. Further drilling and other exploration work would be
required to formulate a Mineral Resource estimate compliant with such standards.

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P T G M T I n d o n e s i a
nd
Jl. TB Simatupang Kav. 1S, 2 Floor
Cilandak Timur, Jakarta, 12560
Phone : +62 21 782 4677 / 8, Fax: +62 21 782 4679

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