MINISTERIAL STATUTE 1/2008,

of 30 July 2008

on

Specific rules for

the licensing of extraction activities of mineral masses (mines and quarries)
and its mining at an industrial scale

Geologic resources have been gaining momentum in tandem with the recognition of the importance of
certain natural products to the economy of nations. While a constituent part of the earth crust, these
products are not to be found everywhere but rather only in very localized areas determined by the
geologic conditions of the national territory.

The State is called upon to perform its regulatory role not only in order to optimize the exploitation of
geologic resources but also because the mining activity can potentially conflict with other values of our
common national heritage, such as the crucial preservation of ecologic balance, an issue that demands a
continued search for the most adequate and balanced solutions.

The diverse features of the classified geologic resources, the techniques employed for their exploitation
and the implications of their mining naturally call for the establishment of a specific, individual regulatory
framework.

The regulations existing in our country do not contemplate all types of resources that can be economically
exploited nowadays. For instance, taking special account of the purposes of this statute and without being
exhaustive, it is worth noting that the regulations are silent on marbles and marls, an essential raw
material for the cement industry, which is vital for infrastructure development and the country's economic
growth.

Now therefore, the Prime Minister deems it imperative to adopt a specific regulatory regime for the
licensing and mining of mineral masses by means of this statute as a legal structure adequate to
achieve the goals herein.

Following the entry into force of Decree-Law 7/2006 on Commercial Registry, and considering the legal
framework successively established by the Companies Law and the Notary Services Framework;
considering also Ministerial Statute (Regulations) 1/2008, as proposed by the Minister for Tourism, Trade
and Industry, of 6 February, on prior licensing of tourism, trade and industry activities, where express
reference is made to the nomenclature of economic activities classes subject to licensing section c,
mining industries the need has arisen, also in line with what is stated there

that the legal and simple provision of electing a single authorization criterion and licensing type for such
different economic sectors, is naturally not feasible even within each activity sub-sector. Those
requirements cannot, and may not follow a single tier and criterion, and therefore a whole legal
framework must be built, starting with the economic classification of the activities and their subsequent
regulation

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 to establish Regulations that, in addition to what is already established in that Ministerial Statute
chapter II, of the Administrative Procedure; documents and other required supporting documents
regulate the issue of licenses for operators of the mining and construction aggregates (sand for use in civil
construction) industry sectors to some degree of specificity, seeking in this very particular and specific
case to introduce a special regime that would be in line with the provisions in Ministerial Statute 1/2008,
of 6 February 2008.

Now, therefore;

Under Article 14.1 (a) and (m) of Decree-Law 7/2007, of 5 September 2007, in conjunction with Articles
6.4 and 9 of that statute, the Government represented by the Prime Minister, hereby orders publication of
the following statute:

CHAPTER I

Article 1
Definitions

For the purposes of this statute, the following shall have the meaning provided for below:

(a) Classified Areas: areas deemed of particular interest for the conservation of nature, including
protected areas, sites of community interest, special conservation zones or special protection zones,
existing or to be created under applicable law;

(b) Non-industrial use: extraction/mining carried out by a small family-owned economic unit;

(c) Mining license for limestone and ornamental stones (marble): License relating to the
category of mineral masses set out in Article 4.3;

(d) Mining Contractor: the holder of the relevant evaluation or mining license; any person to
whom a license is granted under which it is subject to the rights and obligations specified below;

(e) Duly appointed representative/legal representation: the person who represents the company
in accordance with the Companys Articles of Association, as filed and registered with the Ministry of
Justice Services (registry and notary services);

(f) Holder of the business or related activity license: any company already holding a
construction license issued by the Ministry of Infrastructure (MI) or a construction materials Export and
Import License issued by the Ministry of Tourism, Trade and Industry (MTCI), that also applies for a
mining industry license (mining);

(g) Secretary of State: the Secretary of State for Natural Resources (SERN);

(h) Category Migration: change of the mining operations scale;

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(i) Exploration License: the license granted to natural or corporate persons for the development,
or carrying out of geologic study regarding specific minerals;

(j) Prior/preliminary License: the license granted to the applicant for Large-Scale Mining (of
Mines), issued in accordance with the detailed preliminary evaluation plan and the environmental impact
study. Evaluation comprises all studies and works prior to the mining phase and is aimed at scaling,
determining the features and appraising the economic interest of exploiting the relevant mineral masses;

(k) Permanent License: the definitive license granted (and fit) to commission the mining unit;

(l) Academic Research: a license granted for scientific research purposes;

(m) Staff Regional: SERN staff, who following de-concentration of the central services is
seconded/assigned to the region to implement SERN programs and assist with the monitoring in the
districts of the economic activity linked to the sector.

Article 2
Objectives

1. This statute applies to the finding and exploitation of mineral masses, including evaluation and
mining as provided for in this Ministerial Statute, and regulates the licensing procedure.

2. This statute does not apply to micro or small-scale domestic uses, herein designated as non-
industrial extraction/mining, carried out by a small family-owned economic unit falling within the scope
of the provisions of Articles 7.1 and 7.2.

Article 3
Evaluation and Mining
Standards and Best Practices

1. The mining contractor shall prepare and implement an evaluation or mining work program in
accordance with responsible environmental management criteria, assessing, preventing and minimizing
any potential impacts to the soil, flora, surface and ground waters, getting acquainted and abiding by
applicable laws and regulations and restricting to a minimum any interferences with the prevailing land
use typology contained in any existing or future zoning plans.

2. Specifically regarding completed evaluation work, the mining contractor must:

(a) Seal shafts and ditches filling them with any extracted (and deposited) material, restoring the
topography and the soil as close as possible to their initial condition;

(b) Seal drill holes to prevent any potential contamination of aquifers.

3. Without prejudice to the legislation on work-related accidents, where an accident occurs in a

quarry resulting in loss of human life, serious injury or substantial material damage, or which endangers

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the safety of persons and assets, either the mining contractor or its on-site representative must
immediately notify the SERN of the occurrence and also the nearest administrative or police authorities,
to allow for the implementation of the most urgent measures.

Article 4
Mineral Masses Categories

1. For the purposes of this statute, mineral masses shall be defined as any rocks or mineral
occurrences, including those existing in the sea or river beds, which have a vital interest for the economy
due to their economic value or importance in the application in industrial processes.

2. The category of construction minerals, i.e., construction aggregates, substances extracted for
subsequent use in civil construction works includes without limitation:

(a) Sand,

(b) Gravel,

(c) Sandstone,

(d) Andesine,

(e) Basalt,

(f) Diorite, and

(g) Gabbro.

3. The category of rocks and other occurrences includes:

(a) Limestone, and

(b) Marble.

Article 5
Restrictions

1. Extraction of beach sand is strictly prohibited for reasons of environmental, maritime and coastal
protection and preservation.

2. Considering the provisions in Article 54.4 of the Constitution of the Republic, mineral masses
may only be evaluated and mined under a license. The license is granted upon application of the owner of
the property, or a person which has entered into contract with the owner.

3. A mining license for any category may not in any circumstances be issued for a duration which
exceeds the term of the lease agreement entered into with the owner of the property where the evaluation
or mining field is to be installed.

4. The licensed mining contractor may not assign the licensed rights to any third parties.

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5. A mining license may only be validly assigned intervivos or mortis causa to a person appointed
as mining contractor by the licensing entity.

Article 6
Expropriation

1. The declaration of public use of private land (property) for purposes of expropriation to allow for
the mining of mineral masses existing in the soil or sub-soil that are vital to the national economy soil
or sub-soil resources owned by the State shall be made on the terms of the law, notably Article 54.3 of
the Constitution, and subject to payment of fair compensation to the owner of the land and only where it
is anticipated that the mines will generate a greater benefit than that generated by its existing use.

2. After the public use of the land comprising the resources owned by the State has been declared,
expropriation may only be initiated, in accordance with Article 54.2 of the Constitution, when the owner
of the land:

(a) is not willing to mine the mineral masses identified in the subsoil for its own account, or is unable
to do so in a proper manner; and

(b) refuses to lease the land to a third party to enable the mining or tries to impose unacceptable
conditions as defined in the next paragraph.

3. For purposes of Article 6.2(b), any conditions that render quarrying economically unfeasible shall
be deemed unacceptable, or when the rent proposed by the owner for the occupation of the area to be
mined clearly exceeds the income generated by the normal use of the land.

4. The conditions set out in Article 6.2 shall be deemed fulfilled where, justifiably, within a deadline
to be established by the licensing entity and notified to the owner of the land comprising the mineral
masses owned by the State in its subsoil, neither the latter nor any other person having executed any
agreement with it apply for the exploration license.

5. During the deadline set out in Article 6.4 the licensing entity may carry out any actions it may
deem adequate for its own account, so as to divulge its interest in having the relevant mineral masses
mined and attract the greatest possible number of potentially interested parties.

CHAPTER II
EXTRACTION ACTIVITIES

SECTION I
CLASSIFICATION OF ACTIVITY AND
MINING FEES

Article 7
Classifications

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For the purposes of this statute, extraction activities shall be classified into four categories in increasing
order according to the impact caused:

(a) Small family-owned economic unit where the expected quantity of extraction does not exceed 30
tons/month, exclusively using manual labor, shall be classified as Micro-Scale;

(b) Any economic unit that extracts between 30 and 150 tons/month using mechanical extraction and
transport means shall be classified as Small-Scale;

(c) Any economic unit that extracts between 150 and 250 tons/month using heavy equipment shall be
classified as Mid-Scale;

(d) Any economic unit that extracts in excess of 250 tons/month using heavy equipment and fixed
facilities (intangible assets) shall be classified as Large-Scale.

Article 8
Extraction Fee

1. The mining contractor (natural or corporate person) who undertakes extraction activities licensed
under this statute shall pay an extraction fee in accordance with the following paragraphs:

(a) Mid-Scale Unit; USD 1.50 for each ton of sand and gravel extracted; USD 2.00 for each ton of
limestone; and USD 10 for each ton of marble;

(b) Large-Scale Unit; a flat fee calculated by reference to ton, production/total quantity extracted on
the terms of the same values-ton set out above, since the extraction is linked to the quantities permitted by
the economic category of the operator/mining contractor.

2. The exercise of regulatory powers in this sector, also through the fixing of new extraction fees or
amendment thereof, shall be preceded by consultation/prior hearing of the licensed operators with a view
to evaluate the micro-economic sustainability of the proposed mineral resources mining fee, or where the
resources to be mined fall under the provisions of Article 139.1 of the Constitution of the Republic, with a
view to potentially setting royalties.

SECTION II
(LICENSING)

Article 9
Prior opinion regarding location

1. Grant of the licenses set forth in this statute is subject to prior favorable opinion regarding
location.

2. The location opinion shall be issued by the same entity empowered to approve the license.

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 Article 10
Issue of license

1. The license shall be granted to a duly incorporated corporate person in the private or cooperative
sector (a company or a cooperative), or natural person, after confirmation that the elements supporting the
application meet the requirements set out in this statute.

2. The applicant holding a valid license for related economic activities, such as civil construction, is
not guaranteed an automatic grant of the license.

3. The entity submitting a written application for an evaluation or mining license to SERN for its
approval shall attach the plan of activities to be developed together with the following elements:

3.1. Mid-Scale Units:

(a) Application form (in annex) duly completed, attaching a detailed proposal for the mining activity
to be undertaken, indication of the substances that the license should cover and proof that the prior
licensing process of the industrial activities set forth in Ministerial Statute no. 1/2008, of 6 February 2008,
published by the Ministry of Tourism, Trade and Industry (MTCI) was already initiated;

(b) Certificate of favorable opinion regarding location (pursuant to Article 9 of this statute), which
must be attached to the opinion set forth in the next subparagraph;

(c) Favorable opinion/recommendation, following environmental impact assessment, to be prepared

by the relevant governmental department;

(d) Declaration to be issued by the National Lands and Property Directorate, for the purposes of
Article 5.2 (property title or copy of the lease agreement if the mining contractor is not the owner),
including demarcation of rural buildings allocated to the quarry (with express mention that the
mining/quarrying plan is not in an area identified as an area reserved by law for a certain economic use or
subject to any prohibition);

(e) Liability undertaking of the technician responsible for the quarrying or mining plan (technical
supervision shall be performed by a person with a degree in the relevant area, or a person who the SERN
recognizes as having the proper skill profile to undertake such responsibility);

(f) Location map, demarcating the connections between the mining site (quarry) and the nearest
access road;

(g) Area of the quarry (if possible, identification of the mineral masses and estimate of existing
reserves);

(h) Mining method (height and width of the benches, equipment to be used, etc.)

(i) Storage areas for overburden and sub-products;

(j) Daily/annual production forecast;

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(k) Number of staff;

(l) Use of gun-powders;

(m) Support, hygiene and safety facilities and signage.

3.2. Large-Scale Units;

process divided into/spread over 3 phases, without prejudice to first fulfilling the requirements set out in
the preceding paragraph:

(a) Prior Prospecting License (provisional): the applicant shall submit a descriptive memory
/explanatory statement to SERN for issue of opinion/reply regarding the application and relevant issue of
the license of the exploration activities plan. Following review, the SERN will either approve or deny the
application by means of an administrative act (the relevant license shall be issued for a period of up to one
year and may be renewed for successive periods of equal duration up to the issue of the mining license, on
which date the mining phase shall begin);

(b) Declaration/commitment of intent: Within 30 business days from expiry of the license set out
in the preceding paragraph, the applicant may submit a declaration/commitment of intent to proceed to the
next phase, i.e., mining;

(c) Definitive License (renewable): The definitive license shall be issued upon expiry of the
exploration license, or if this is not possible, 90 days from receipt by the SERN Services of the
Declaration of Intent set out in the preceding sub-paragraph, attaching proof of payment of the relevant
licensing fee to the State (deposit with the Banking Entity Appointed by the SERN).

4. The applicant shall request that the State services issue payment slips for the fee set out in the
preceding paragraph.

5. Regarding the licensing of academic researches (scientific research) for a period of 6 months,
or for the duration of the academic year, the applicant shall submit a duly completed form attaching a
field activities proposal and letter of authorization of the research project to be issued by the relevant
scientific institution.

6. The SERN will issue the research for academic purposes license within 15 business days,
provided that the documents are submitted in accordance with the set requirements.

Article 11
Deadline for (Administrative) Processing of the License

1. Once all required documents have been filed by the applicant the SERN shall issue the licenses
within the following deadlines:

(a) Mid-Scale Units:

Up to 15 business days, and;

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(b) Large-Scale Units:
The deadline established in Article 10, paragraph 3.2 (subparagraphs (a), (b) and (c)).

2. To calculate the above deadlines, the licensing entity shall issue a receipt with the date on which
the application was filed and return it to the applicant. The receipt will be proof that the application was
filed on that date.

3. The date of the receipt provided for in the preceding paragraph shall for all purposes be the date
of the beginning of the procedure to obtain the license.

4. If the initial application does not fulfil the requirements in the preceding Article, the licensing
entity shall request the applicant to submit any missing elements within an additional 10-day period. All
deadlines of the procedure shall be suspended until the missing elements are filed.

Article 12
Approval of the Application and Issue of the License

1. The Secretary of State for Natural Resources shall approve and authorize the Exploration
Licenses and Definitive Licenses in the event of an application to license a Large-Scale mining/extraction
activity.

2. The authority established in the preceding paragraph can always be delegated to the National
Director for Mineral Resources.

3. Save for exploration and evaluation licenses, the license shall have a duration of 2 years, unless
the respective approval order stipulates otherwise.

4. The National Director for Mineral Resources shall approve and authorize Mid-Scale
mining/extraction licenses. In the event of absence or unavailability of the National Director for Mineral
Resources, this authority may be delegated to a SERN National Director to be appointed.

Article 13
Rejection of the Application

Notwithstanding that all required documents and elements have been presented, the application shall be
rejected by the licensing authority at any time during processing in the following cases:

(a) If the application is overlapping with any licenses granted under this statute;

(b) If the projects economic feasibility or proper implementation is not guaranteed;

(c) Where the application is not suitable to meet the goals that the applicant wishes to achieve;

(d) Where the application does not ensure sustainable exploitation of the resource;

(e) Where the applicant does not accept the conditions for the license;

(f) For reasons of public interest;

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(g) For safety, hygiene, health, labor or environmental reasons.

Article 14
Application for extension of the License

1. The application for extension of the license shall be filed with the licensing entity no less than 30
days prior to expiry of the relevant license.

2. Provided the reasons for its grant are still current, the license may be renewed for an equal period
of time.

3. The following elements shall be submitted together with the application for extension:

(a) A report briefly describing the performed and completed works, and the results obtained; and

(b) A summary plan of the works forecasted for the extension period.

4. Within 10 days the licensing entity may request, stating the grounds thereof, for clarifications and
propose measures for the improvement of the work program and the conditions for its implementation.
These shall be communicated to the applicant, who shall reply within 10 days, upon which a decision will
be made.

Article 15
License Certificate
(incorporation of the right/certificate)

1. Once approved, the license shall be incorporated in a certificate to be issued by the Secretariat of
State of Natural Resources (SERN) under the provisions of Article 14.

2. The supporting elements of the license and other elements relating to the quarrys evaluation or
quarrying must be kept on-site.

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 Article 16
License Termination

The license shall terminate:

(a) By expiry of the initial term or any extension thereof (if granted); termination of the agreement
with the owner of the property; abandonment of the quarry; depletion of reserves; or death of natural
person or winding-up of the corporate person holding the license;

(b) By relinquishment, provided that the license holder serves notice on the licensing entity of such
relinquishment;

(c) By revocation of the licensing entity, in case the license holder fails to comply with these
regulations or other existing laws, or the licenses terms and conditions, or assigns its rights and
obligations under the agreement executed with the owner of the property which supported the issue of the
license by the SERN.

Article 17
Registry and Database

1. Once the mining license is granted, the licensing entity shall relay the geo-referenced data of the
quarry to the supervising Directorate for purposes of assignment of the corresponding registration
number.

2. The SERNs National Directorate of Mineral Resources shall manage and update the database of
licensed operators in the area of exploration, mining and extraction of minerals.

3. The whole administrative licensing process conducted by the decentralized SERN services
(district or administrative region delegations) shall be transferred to the National Directorate of Mineral
Resources and consolidated for purposes of the preceding paragraph.

4. Quarrying contractors shall send to SERN the statistical map with information on past years
production by no later than 31 December of each year.

5. Without prejudice to any other applicable legislation, the statistical elements provided to SERN
are confidential.

Article 18
Higher scale and change of the licensing regime (Migration between categories)

Any mining contractor/operator licensed for a certain category may apply to upgrade the scale of its
extraction operation to a higher category provided that:

(a) He submits a duly completed application form for renewal of the license attaching the relevant
certificate of the mining license before the end of the licensed period, and a statement signed by the legal
representative of the mining entity that it wishes to be licensed for a higher category as from renewal.

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(b) The compliance requirements to which the change of category is subject shall be those listed for
the intended higher category, as set out in Article 10.

Article 19
Cost of the License

1. Mining License for:

(a) Mid-Scale Units, one hundred US Dollars (USD 100);

(b) Large-Scale Units, one thousand US Dollars (USD 1000);

2. The license will only be issued after the applicant provides to the SERN Services proof of
payment of the licensing fee set out in the preceding paragraph to the State (deposit with the Banking
Entity Appointed by the SERN).

3. No license issue fee shall be due in the case of applications for academic research.

CHAPTER III
MONITORING AND INSPECTION

Article 20
Regional Inspection Centers

1. In order to ensure an effective and efficient control and verification of the pre-existing on-site
conditions as specified by the applicant in its license application, the following regional inspection areas
are established, which shall be tasked with pre- and post-licensing monitoring and inspection:

Center and area covered;

(a) Region 1 Lospalos, Baucau and Viqueque;

(b) Region 2 Manatutu, Aileu, Same, Ainaro and Suai;

(c) Region 3 Dili, Liquia, Ermera and Maliana;

(d) Region 4 Oe-Cusse Ambeno Enclave.

2. The SERN and its Regional Centers shall have the principal responsibility for the technical and
administrative supervising of performance of the mining plan and compliance with applicable legal
provisions and otherwise for ensuring that the mineral masses are actually being evaluated and mined.
They will be assisted in this task by police authorities and public health, environmental, zoning or
economic authorities, within the scope of their respective powers.

3. The SERN shall be tasked with the coordination and standardization of all procedures
contemplated in this statute.

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 Article 21
Monitoring and Inspection Procedure

1. SERN's inspection authority encompasses the following:

(a) Ensure that the entities engaged in the activities regulated herein comply with the applicable laws
and regulations;

(b) Inspect existing and fully operational quarries, requesting the immediate presence of the mining
contractor or the on-site responsible technician whenever it deems that the quarry poses a danger to the
staff or third parties, neighboring buildings or any public easements;

(c) Immediately visit the quarry where it becomes aware that an accident occurred following any
claims or mandatory report by the mining contractor.

2. In addition to verifying that the mining complies with the established requirements, monitoring
and inspection shall have the following periodicity, to protect the environment, natural resources and
public health:

(a) Micro and Small-Scale Units: random, non-regular monitoring;

(b) Mid-Scale Units: monthly inspections to be carried out by the regional center, and an annual
audit to be carried out by the Dili central services (SERN);

(c) Large-Scale Units: monthly inspections and annual audit to be directly carried out by the Dili
central services (SERN), without prejudice to the on-site permanent presence of a SERN official.

3. Where required, monitoring and inspection as provided for in the preceding paragraphs shall be
carried out in liaison with the services of other related supervising authorities.

4. In the interest of transparency of the monitoring/inspection objectives, the Secretary of State for
Natural resources shall approve, in the form of an order, the checklist for on-site inspections.

5. Outside those periods, the licensing entities may also conduct other inspections to the mine
whenever they deem it appropriate in accordance with its nature and size and to ensure at all times
compliance with the licenses terms and conditions, legal obligations and the objectives set out in the
annual program/plan, which must be submitted to the licensing entity prior to the issue of the relevant
license.

6. At completion of the inspection an official report shall be prepared confirming the quarrys
compliance with the terms of the mining license, or otherwise specifying the measures to be taken to
achieve such compliance and the deadline for their implementation.

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 CHAPTER IV

Article 22
General obligations of the license holder

1. The technician responsible for the quarry shall be jointly and severally liable with the mining
contractor for the implementation of the approved quarry plan, irrespective of whether or not it signed it,
and for any damage caused due to failure to enforce the standards in the performance of the mining works
without prejudice to the provisions in general law on work-related accidents.

2. Quarrying contractors and technicians responsible for the mining must make proper arrangements
to guarantee the safety of staff and any third parties and the protection of assets that could be affected by
the mining.

3. The holders of an evaluation or mining license must give SERN access to all works, annexes and
outbuildings of the mine and provide all information and any clarifications that may be requested in
connection with the activity undertaken, including access to collect samples.

4. Use of gunpowder and explosives requires prior visual signage, protection of access ways to any
dangerous locations, and SERNs authorization.

5. It is mandatory to install a sign identifying the quarry site and the respective mining company,
together with the licensing date and licensing entity, for the duration of the mining activities.

6. The borders of the excavation where rock-breaking works were completed must be protected by a
fence suitable to the specific conditions of the site.

7. Under the preceding paragraphs the licensing entity may impose that works or measures be
undertaken in order to ensure mine safety. The mining contractor must implement such measures.

Article 23
Breach

1. The licensing entity may take back a mining license in the following cases:

(a) In the course of a 12-month period, the license holder is found to be in breach for 3 times of
provisions on safety of persons and goods;

(b) The license holder fails to comply, without justification, with the orders issued following the
inspections carried out by the entities responsible for approval of the quarry plan;

(c) The license holder is found to be incapable of properly mine the relevant quarry due to serious or
repeated misconduct;

(d) The mining contractor fails to post signs or properly fence the boundaries of the licensed area;

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(e) After hearing the entities responsible for the quarry plan the licensing entity does not consider
that the suspension of quarrying for over 6 months is justified (serving notice on the mining contractor to
immediately shut it down);

(f) The Extraction Unit is notified 3 times that it is operating outside the applicable technical
parameters of the license category.

2. Where a non-licensed quarry poses imminent danger or serious threat to safety, health or the
environment, the SERN, the health authorities or police authorities may decide the steps to be taken on a
case-by-case basis to prevent or remove the situation.

3. The provisions in the preceding paragraph shall also apply to licensed quarries.

4. The measures set out in the preceding paragraphs may consist of observance of general
principles, suspension of operations, preventive shut-down of the mine (or part thereof) or seizure of all or
part of the equipment by sealing it during a certain period.

5. Police authorities shall promptly assist the licensing authority to the extent requested by the latter
to avoid or remove the danger, or enforce its orders.

6. The cancellation of the preventive measures set forth in this Article shall be decided, at the
request of the interested party, following an inspection of the mine that concludes that the circumstances
that led to the cancellation have been removed.

CHAPTER V
FINAL PROVISIONS

Article 24
Transitional Regime

1. Any entities engaged it extraction/mining activities prior to the effective date of this ministerial
statute must regularize forthwith their situation as provided for herein, including initiating the process for
their formal licensing, without prejudice to any other acts or formalities already performed.

2. The application for regularization of mining may be subject of a:

(a) Favorable decision;

(b) Conditional favorable decision;

(c) Unfavorable decision.

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3. The administration agents and officials responsible for regularization, inspection and supervision
under this statute shall seek to ensure a balanced and efficient application of the new legal regime for the
licensing of the activities herein, aligning the interests of the State and those of any existing evaluation or
mining operators.

Article 25
Official Forms

For purposes of licensing of the extraction activities, any references in these Regulations to the
completion of forms shall be deemed references to the official forms published in attachment.

Article 26
Entry into force

These regulations shall come into force on the day following that of their publication in the Official
Gazette.

Government Palace, 14 July 2008

The Prime Minister,

_____________________

Kay Rala Xanana Gusmo

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