RSM Sum Info Memo Doc Aug 15-1 (Revised)

PT.
RATU SAMBAN MINING July 1, 2014
DISCLAIMER
This document is provided to a limited number of parties in connection with the potential divestment by the Shareholders of their
interest (the interest) in PT. Ratu Samban Mining (RSM).
The sole purpose of this document is to assist the recipient in deciding whether they wish to proceed with a further investigation
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Estimates, statistics and forecasts contained in this document are based on RSMs own figures. They are provided in good faith,
but by their nature, are based on a number of assumptions and are subjective. Interested recipients should therefore carry out
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aspects of production and other facilities.
While this information has been prepared in good faith, no representation or warranty, expressed or implied, is or will be made,
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Accordingly, interested recipients should carry out their own investigations and analysis of RSM and of the information contained or
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in respect to any Information contained in this document or with respect to the sale process. Any enquiries must be channelled
through the Company Representative who shall be nominated at the appropriate time.
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PT. RATU SAMBAN MINING July 1, 2014
Block 2/3 Mine & Infrastructure Location Pulau Baai Coal Terminal Location
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Table of Contents
Section Page
DISCLAIMER 1
Executive Summary 1
1. Company 3
1.1 Corporate Structure 3
1.2 Company Creed 4
1.3 Keys to Success 4
1.4 Location 5
1.5 Concessions 6
2. Geology & Exploration 7
2.1 Geology 7
2.2 Exploration Summary 9
2.3 Coal Quality 10
2.4 Coal Resources 11
3. RSM Coal Concessions in Detail 12
3.1 Block 2 12
3.2 Block 3 13
3.3 Block 5 14
3.4 Block 6 15
3.5 Block 7 16
3.6 Block 9 17
4. Infrastructure and Logistics 18
4.1 Bengkulu 18
4.2 Palau Baai Coal Stockyard 18
4.3 Coal Roads 19
4.4 Mine 20
4.4.1 Mine Facilities 20
4.4.2 Other Major Assets 20
4.4.3 Land 21
5. Surface Coal Mining Operations 22
5.1 Overview 22
5.2 Surface Mining Plan 22
5.3 Mining Method 23
5.4 Geological Model for Mine Design 23
6. Underground Mining Operations 25
6.1 Overview 25
6.2 Mining Method 26
7. Recoverable Coal Resources 30
8. Organization and External Affairs 31
8.1 Organization 31
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8.2 Environmental 32
8.3 Community Development 32
8.4 Safety 32
9. Market Outlook 33
9.1 Thermal Coal Market Demand 33
9.2 RSM Coal Quality 35
9.3 Thermal Coal Pricing 35
10. RSM Permits 36
10.1 Corporate Documents 36
10.2 Operations Permits 36
11. Financial 37
11.1 Surface Mining 37
11.2 (Initial) Underground Mining 39
11.3 Recoverable Resources 41
11.4 RSM Enterprise Value 41
11.5 Sensitivity Analysis 42
12. Appendices 1
12.1 Sensitivities Surface Mining 1
12.2 Sensitivities Underground Mining 2
12.3 Sensitivities Break-even Analysis 3
12.4 Camp Location & Layout 4
12.5 Arial View of Block 6 5
12.6 Reconciliation Summary 6
List of Figures
Section Page
Figure 1: Corporate Structure ........................................................................................................................ 4
Figure 2: RSM Concessions and Coal Terminal Location ............................................................................. 5
Figure 3: Regional Tectonic Setting of the Bengkulu Basin ........................................................................... 7
Figure 4: Regional Geology ........................................................................................................................... 8
Figure 5: Magnetometer Survey - Block 3 ..................................................................................................... 9
Figure 6: RSM Block 2 (including Niaga) ..................................................................................................... 12
Figure 7: RSM Block 2 Pit Location & Layout .............................................................................................. 12
Figure 8: RSM Block 3 ................................................................................................................................. 13
Figure 9: RSM Block 3 - Pit B Pit Location & Layout ................................................................................... 13
Figure 10: RSM Block 5 ............................................................................................................................... 14
Figure 11: RSM Block 5 Pit Layout .............................................................................................................. 14
Figure 12: RSM Block 6 ............................................................................................................................... 15
Figure 13: RSM Block 6 & 7 Pit Location & Layout ...................................................................................... 15
Figure 14: RSM Block 7 ............................................................................................................................... 16
Figure 15: RSM Block 7 Seam Cross Section ............................................................................................. 16
Figure 16: RSM Block 9 ............................................................................................................................... 17
Figure 17: RSM Block 9 Pit Location & Layout ............................................................................................ 17
Figure 18: Coal Haul Roads ........................................................................................................................ 19
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Figure 19: Typical Pit Shell .......................................................................................................................... 24

Figure 20: Coal Chain Layout - Mine to Vessel............................................................................................ 24
Figure 21: Underground Panel layout .......................................................................................................... 27
Figure 22: Long-wall Panel layout ............................................................................................................... 28
Figure 23: Layout Surface Facilities............................................................................................................. 29
Figure 24: Bengkulu Organization Structure ................................................................................................ 31
Figure 25: Thermal Coal Demand Forecast ................................................................................................. 33
Figure 26: JPUs Average Caloric Value Coal Consumed ........................................................................... 34
Figure 27: Thermal Coal Price Forecast ...................................................................................................... 34
Figure 28: Coal Quality Management History .............................................................................................. 35
Figure 29: Sensitivity Analysis ..................................................................................................................... 42
List of Tables
Section Page
Table 1: Concessions & Status ...................................................................................................................... 6
Table 2: Exploration Summary .................................................................................................................... 10
Table 3: Insitu Coal Quality .......................................................................................................................... 10
Table 4: Coal Resources Delineated by Classification ................................................................................ 11
Table 5: Coal Resources Delineated by Depth ............................................................................................ 11
Table 6: Surface Mining Coal Resource at <100m Depth ............................................................................ 22
Table 7: Surface Mining Production Plan ..................................................................................................... 22
Table 8: Surface Mining Assumptions ......................................................................................................... 23
Table 9: Underground Mining Resources at >100m Depth .......................................................................... 25
Table 10: Initial Underground Mining Plan ................................................................................................... 26
Table 11: Mining Assumptions ..................................................................................................................... 29
Table 12: Recoverable Surface Mining Coal Resources ............................................................................. 30
Table 13: Recoverable Underground Mining Coal Resources ..................................................................... 30
Table 14: Assumptions ................................................................................................................................ 37
Table 15: Investment ................................................................................................................................... 37
Table 16: Operating Costs ........................................................................................................................... 38
Table 17: Profit & Loss ................................................................................................................................ 38
Table 18: Assumptions ................................................................................................................................ 39
Table 19: Investment ................................................................................................................................... 39
Table 20: Operating Costs ........................................................................................................................... 40
Table 21: Profit & Loss ................................................................................................................................ 40
Table 22: Recoverable Resources Value .................................................................................................... 41
Table 23: RSM Enterprise Value ................................................................................................................. 41
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Executive Summary
PT. Ratu Samban Mining (RSM) is an established thermal coal producer located in the Province of
Bengkulu; Sumatera; Republic of Indonesia. RSM holds the license to exploit seven coal concessions
(also referred to as Blocks), with total area of 11,920 ha, situated in the foot hills of Bukit Barisan
(mountains) which lie to the northeast. The concessions are close to the provincial capital Bengkulu.
The concessions collectively have extensive Coal Resources based on geological data which conforms to
the *JORC Code. To date 40% of the combined area of all Blocks has been explored and 92 Mt of Coal
Resources have been delineated. The coal is continuous and presented throughout the region and sub-
crops in the RSM concessions.
Extensive exploration has been conducted in the concessions initially coal outcrop and stream traverse
mapping and drilling; over 200,000 metres has been drilled in prospective locations. Further exploration
using more advanced techniques has enabled RSM to define a significant resource of premium thermal
coal. Subsequent exploration work has identified the potential for the discovery of metallurgical grade coal.
The Coal Resources amount to some 27 million tonnes and 65 million tonnes for open-pit and underground
mining respectively, comprising measured, indicated and inferred resources.
The Bengkulu region is located in the Forearc Basin of Sumatera which is subject to movement of the
tectonic plates causing earthquakes and uplift of Bukit Barisan. This uplift, has moved the deep high grade
coal closer to the surface and has also caused significant faulting of the sub-terrain structure and coal
deposit. For this reason the mining operation targets shallower thicker coal in multiple pits as opposed to
normal strip mining.
RSM has been in operation for a number of years and has extracted in excess of one million tonnes of
quality high ranking thermal coal using open-pit mining methods. Mining operations ceased for non-
technical reasons and RSM is currently preparing to recommence mining operations under different
management.
RSM plans to recommence coal mining operations. Initially continuing to use open pit mining methods and
simultaneously prepare for mining using underground mining methods. RSM has established a
development plan and implementation strategy to bring the pits back into production commencing 2014.
In preparation to recommence open pit production, all infrastructure is still in place and operational,
including; roads, stockpile, offices, camp (fully equipped and functional, with capacity to accommodate
more than 200 staff), workshop (including support equipment), port stockpile and crushing facilities. There
remains a full complement of skilled staff in Bengkulu, so that with the exception of some minor road repair,
due to water erosion and pumping of water ingress from the operational pits, start-up of production can be
achieved very expediently.
The over burden and coal is removed using conventional truck and shovel mining methods. The coal is
transported to the run-of-mine stockpile located within the Blocks. From there the coal is loaded into on-
highway trucks for transportation on public roads to RSMs Pulau Baai port stockpile which is located close
to Bengkulu (city). There it is crushed and sized and either stockpiled or directly transported 2 km to the
Government operated Pelindo coal terminal for direct loading into vessels for shipment to the final
customer.
RSM has produced and sold in excess of one million tonnes of coal marketed as Barisan Coal. Barisan
coal has attained a reputation of being a high ranking thermal coal which attracts a premium price. Barisan
Coal is well accepted in the market place and in particular Japan.
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Although the market for thermal coal is currently challenging, RSMs return on investment remains robust.
This is in part due to the premium above market sales price RSM receives for the high quality coal
produced, proximity of the mine to the coal loading port and proximity of the Bengkulu Region to Asian
customers.
The current business plan is for 6.5 Mt of surface mining over a 12 year mine life with an annual production
rate of 600,000 tonnes per year, this returns a Net Profit in excess of USD 110 million. The business plan is
conservative as the Coal Resources delineated to date are sufficient to increase the production rate or
alternatively life of mine. Operating costs used in the plan are in line with that currently achieved in the
Bengkulu Region and coal price used is based on the price historically achieved by RSM for this high
ranking coal product.
The current business plan also includes 2.0 Mt of underground mining over a 13 year mine life with an
annual production rate of 200,000 tonnes per year, this returns a Net Profit in excess of USD 45 million.
The business plan is conservative as the Coal Resources delineated to date are sufficient to increase the
production rate or alternatively life of mine. Investment and operating costs are based on a pre-feasibility
study conducted on behalf of RSM in Block 2 & 3, by Coal Resources & Mining Engineering Co. Ltd. of
Japan. As this is an initial underground mine with small production volume, Investment is comparatively
high and equipment is underutilized. However, the business plan still returns a reasonable profit,
suggesting that a higher full scale underground mining operation will be very economically as can be seen
in the attachment; Sensitivities Underground Mining.
To date 40% of the combined area of all Blocks has been explored and 92 Mt of Coal Resources have
been delineated. Resources delineated, within the 40%, that are not included in the surface mining and
underground mining business plans have been valued at a nominal price per tonne of coal in the ground.
The Enterprise Value of RSM has been determined at USD 95 million based on current coal price and
operating costs.
*JORC: (the JORC Code) is the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.
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- Low Operating Costs : Good mine planning and design based on detailed
exploration data, operational control and deployment of
reliable mining equipment and plant to minimize
breakdowns and stoppages.
- Market Strategy : Market penetration diversification to reduce impact of
market sector fluctuations.
- Attractive Employment Conditions : Create good working and living conditions for employees
and families to attract them to the remote location of
Bengkulu.
- Focused Management : Good management and operations control to ensure that
costs do not blow-out 10 cents increase per unit
overburden removed adds more than one dollar to the
costs per tonne of coal produced.
- Professional Contractors : Selection of efficient and professional mining contractors
applying world class mining methods.
1.4 Location
Bengkulu Province is located on the southwest coast of Sumatera and situated on the western side of Bukit
Barisan. The Province covers an area of approximately 21,100 km and borders the provinces of West
Sumatera, Jambi, South Sumatera and Lampung. The capital and largest city is Kota Bengkulu.
Figure 2: RSM Concessions and Coal Terminal Location
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2. Geology & Exploration

2.1 Geology
The Bengkulu Basin is located in the southeast part of Sumatera, covering areas both onshore and
offshore. In general, it trends parallel to Sumatera and is about 600 kms in length and 150 - 200 kms wide.
To the north and northeast lies Bukit Barisan, while in the south and southwest it is bounded by islands or
the slope break of the Sunda Arc Trench System. It is part of the Forearc Basin associated with the
collision of the Indian Ocean Plate and the Eurasian Plate. Coal deposition in the Lemau Formation
occurred during the Middle Miocene age (approximately 15 million years ago) and coal seams up to 6m
thick were deposited. Igneous activity occurred at the time of coal accumulation and also in the late
Pliocene age (approximately 1 million years ago). This was in response to the Bukit Barisan uplift and
tectonism related to the continuation and development of plate collision and subduction at the plate
boundary.
Figure 3: Regional Tectonic Setting of the Bengkulu Basin
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Regional structures in the Bengkulu Basin fall into two main categories; northwest trending structures that
define the east and west basin boundaries and the northeast trending structures that divide the Bengkulu
Basin into a series of structural blocks. The northeast trending structures are fundamental to understanding
the geology of the Bengkulu Basin and the coal deposits distribution and structure appear to be controlled
by these northeast trending faults.
Block 2 & 3 and the northern part of Block 9 have been uplifted and as a result the coal deposits are
relatively close to the surface. Block 9 south is part of a dome structure surrounding the Bukit Sunur
intrusion, where the Lemau Formation sediments are uplifted and draped around the base of the intrusive
body.
Blocks 6 and 7 appear to be in a much broader structural location, remote from the Barisan uplift and as a
result these deposits in these Blocks appear to be less structurally disturbed and more laterally persistent.
There are several braided streams flowing from northeast to southwest in the Bengkulu Basin, the upper
reaches of three of these cross Blocks 2 and 3; the Susup, Kotok and Lemau rivers. Similarly, braided
steams cross Block 6; the Palik and in Block 9; the Bengkulu (river).
Figure 4: Regional Geology
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2.2 Exploration Summary

RSM has been exploring for high grade coal in the Middle Miocene Lemau Formation for some 7 years and
more than 200,000 metres of drilling has been completed. An area of some 10,000 ha in the concessions
has been identified as having prospective mining opportunity. At least eleven (11) separate coal seams
have been identified in the region up to six (6) metres thick. RSM has concentrated on the 3 upper seams;
S1, S2, S3. S3 is the lower and main production seam which is presented throughout the region and in all
RSMs concessions.
Extensive exploration has been carried out, including; coal outcrop and stream traverse mapping followed
by systematic drilling in prospective locations. Further exploration using more advanced techniques such as
seismic, lidar survey, magnetometer survey and deep stratigraphic drilling has enabled RSM to define a
significant resource of premium thermal coal.
Subsequent exploration work funded by *NEDO identified the potential for the discovery of high grade PCI
(coal pulverized injection) grade coal in the older seams; S4 S7 in all RSM Blocks. The older seams are
higher rank due to burial metamorphism and volcanic contact metamorphism.
Figure 5: Magnetometer Survey - Block 3
The magnetometer survey gives surveyors an insight into what lies beneath the surface and identify coal
bearing formations. It has assisted in determining map basin shape at a regional scale and has provided
them with further confidence of the existence of substantial coal deposits in RSMs concessions.
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Extensive exploration has been conducted in all RSMs Blocks. As production commenced in Blocks 2 & 3
the exploration activity has concentrated in these Blocks. To date 40% of the combined area of all Blocks
has been explored and 92 Mt of Coal Resources have been delineated.
Table 2: Exploration Summary
Blk 2 Blk 3 Blk 5 Blk 6 Blk 7 Blk 9 TOTAL

General Survey
Date Start Sep-07 Feb-07 Sep-08 Nov-09 Aug-09
Date Finish Sep-12 Jul-12 Jul-09 Sep-12 Jul-12
Geo Mapping (ha) 2052 662 3985 5561 12260
Topo Mapping 2052 57 3985 5561 11655
Scale 1 : 1000 1 : 2000 1 : 1000 1 : 1000 0
Total Outcrops Observed 366 n/a 21 237 624
Coal Outcrops Observed 103 n/a 4 2 109
Percentage Explored to-date 50% 81% 37% 66% 49% 19% 40%
Drilling
Open hole (m) 48325 74969 18315 28123 25037 194769
Coring (m) 5765 3686 645 5709 1644 17449
Total Depth (m) 54089 78656 18960 33832 26681 212218
Drill holes Completed 794 1147 380 435 334 3090
Drillhole Collar Survey Pick up 724 1123 377 410 308 2942
Geotechnic holes drilled 8 7 15
Meters Reconciled with
Geophysical Log (m) 28391 47115 7297 20494 17201 120498
Geophysical logged holes 429 719 168 242 255 1813
Coal Core analysis compl
(ASTM & ISO std.) 82 85 39 41 30 277
2.3 Coal Quality

The main seam (Sekayun S3) has average thickness ~3 metres and is of consistent high quality thermal
coal. Coal quality for the main production Blocks is; calorific value (ranging between ~6360 to 6750 adb),
average to low sulphur (ranging between 0.48 to 0.62%), ash ~5% and inherent moisture (ranging between
5 to 8%).
Table 3: Insitu Coal Quality
Quality Blk 2,3 & Niaga Blk 5 Blk 6 North Blk 6 South Blk 7 Blk 9
Total Moisture arb 14.19 29.73 12.09 16.76 13.13 11.75
Inherent Moisture adb 8.28 12.98 5.16 4.73 3.78 3.38
Ash adb 5.16 10.46 15.59 4.96 6.03 14.28
Volatile Matter adb 42.21 40.15 30.65 43.81 30.72 37.01
Fixed Carbon adb 44.09 36.41 48.59 46.43 59.47 45.06
Total Sulphur adb 0.52 0.55 0.88 0.62 1.15 0.48
Calorific Value adb 6743 5205 6361 7061 7343 6474
Calorific Value gar 6309 4201 5884 6171 6630 5914
Calorific Value daf 7790 6796 7994 7820 8139 7863
Relative Density 1.37
Hard Grove Index 44 - 48
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2.4 Coal Resources

The concessions collectively have extensive Coal Resources based on detailed geological data that
conforms to the *JORC Code. Total Coal Resources delineated to-date amount to some 92 Mt of which in
excess of 5 Mt is Measured. The coal is continuous and presented throughout the region and sub-crops in
the RSM concessions.
The table below sets out the Coal Resources delineated to-date and the extent of exploration in each of
RSMs Blocks.
Table 4: Coal Resources Delineated by Classification
Classification Blk 2 Blk 3 Blk 5 Blk 6 Blk 7 Blk 9 TOTAL

Explored Todate 50% 81% 37% 66% 49% 19% 40%
Measured (Mt) 0.93 0.87 1.69 0.00 0.00 1.84 5.34
Indicated (Mt) 4.05 0.84 1.12 16.62 3.74 1.70 28.07
Inferred (Mt) 12.95 0.11 0.20 22.35 20.65 2.35 58.59
TOTAL (Mt) 17.92 1.82 3.02 38.97 24.39 5.89 92.00
Note: Coal Resources stated, exclude all coal extracted by previous mining.
The table below sets out the Coal Resources restated by depth. This chart is useful for determining the
surface mining Coal Resources and the potential underground minable Coal Resources.
Table 5: Coal Resources Delineated by Depth
Depth Range Blk 2 Blk 3 Blk 5 Blk 6 Blk 7 Blk 9 TOTAL

Explored Todate 50% 81% 37% 66% 49% 19% 40%
0-50m (Mt) 0.54 0.76 0.95 2.84 0.05 0.25 5.39
50-100m (Mt) 1.49 0.94 0.72 14.46 3.99 0.42 22.02
>100m (Mt) 15.88 0.12 1.35 21.67 20.34 5.22 64.59
TOTAL (Mt) 17.92 1.82 3.02 38.97 24.39 5.89 92.00
Note: Coal Resources stated, exclude all coal extracted by previous mining.
Block 9 has potential for a large increase in Coal Resources with additional exploration and drilling. The
geological target for additional Coal Resources in this Block is estimated at 5 to 20 million tonnes. Although
this is the considered opinion of the consulting geologist, it cannot at this stage be included in the Coal
Resource statement.
*NEDO refers to The New Energy and Industrial Technology Development Organization; Japan's largest public management
organization promoting research and development as well as deployment of industrial, energy and environmental technologies
11 | P A G E
3. RSM Coal Concessions in Detail

3.1 Block 2
Figure 6: RSM Block 2 (including Niaga)
IUP No KW BT 010 010
SK No.104 Tahun 2010
Date : 22 April 2010
Coordinates 102 21 59.35 (BT); 3 34 11.57 (LS)
102 22 34.37 (BT); 3 34 11.57 (LS)
102 22 34.37 (BT); 3 34 21.35 (LS)
102 22 50.55 (BT); 3 34 31.35 (LS)
Area 1073 ha
Region Kec.Bang Haji
Kab. Bengkulu Tengah
Villages Desa Sekayun
Coal Resource 17.92 Mt
Coal Quality
CV : 6743 kcal/kg
(ADB)
IM : 8.28%
Ash : 5.16%
TS : 0.52%
Distance to the
84 km
Port from Sekayun
Stock pile
Note; IUP Merger: KW.BT 010-010 (Block 2) & KW.BT 010-011 (Block 3) have been merged into one IUP with the following details; KW.BT
011-011 No. SK: 349 Thn.2011 Date: 28 December 2011with total area 1,955.66 ha.
Figure 7: RSM Block 2 Pit Location & Layout
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3.2 Block 3
Figure 8: RSM Block 3
SK. No 104 A Thn 2010
Coordinates 102 21 14.05 (BT) ; 3 30 23.59
(LS)
102 21 14.05 (BT ; 3 30 35.26
(LS)
102 20 57.8 (BT) ; 3 30 35.26
(LS)
102 20 57.8 (BT) ; 3 30 49.60
(LS)
Area 986 ha
Region Kec.Pematang Tiga
Kab.Bengkulu Tengah
Villages Desa Batuberiang
Coal Quality CV : 6743 kcal/kg
(ADB) IM : 8.28%
Ash : 5.16%
TS : 0.52%
Distance to the 89 km
Port from Batu
Beriang Stock
pile
Note; IUP Merger: KW.BT 010-010 (Block 2) & KW.BT 010-011 (Block 3) have been merged into one IUP with the following details; KW.BT
011-011 No. SK: 349 Thn.2011 Date: 28 December 2011with total area 1,955.66 ha.
Figure 9: RSM Block 3 - Pit B Pit Location & Layout
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3.3 Block 5
IUP No 96 PP 0417
SK No 280 Thn 2010
Coordinates 102 39 20.90 (BT); 3 58 30.30
(LS)
102 39 20.90 (BT); 3 58 54.80
(LS)
102 40 3 .30 (BT); 3 58 54,80
(LS)
102 40 3 .30 (BT); 3 59 44.5
(LS)
Area 664 ha
Region Kec.Seluma Utara
Kab.Seluma
Villages Desa Talang Empat
Desa Lubuk Resam
Coal Quality (ADB) CV : 5205 kcal/kg
IM : 13%
Ash: 10.5%
TS : 0.55%
Port
Figure 11: RSM Block 5 Pit Layout
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3.4 Block 6
IUP No KW BU 009 004
No.SK 323 Thn 2009
Date : 27 0ktober 2009
Coordinates 102 16 42.28 (BT); 3 28 24.14 (LS)
102 15 35.01 (BT); 3 28 23.97 (LS)
102 15 35.01 (BT); 3 26 25.31 (LS)
102 16 25.76 (BT); 3 26 25.31 (LS)
Area 2000 ha
Region Kec.Kerkap
Kec Arga Makmur
Kab Bengkulu Utara
Villages Desa Simpang Ketenong
Coal Quality CV : 7061 kcal/kg (south)
(ADB) IM : 4.73%
Ash : 5.0%
TS : 0.62%
Port
The older seams in the northern Blocks have potential to be higher rank thermal coal and metallurgical grade coal due to burial metamorphism
and contact metamorphism.
Figure 13: RSM Block 6 & 7 Pit Location & Layout
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3.5 Block 7
IUP No KW BU 009 003
SK No : 322 Thn 2009
Date : 27 Nov 2009
Coordinates 102 15 33.24 (BT);3 26 29.30
(LS)
102 15 33.24 (BT);3 29 15.07
(LS)
102 15 51.51(BT);3 29 15.18
(LS)
102 15 51.34 (BT);3 30 29.19
(LS)
Area 2000 ha
Region Kec. Kerkap
Kec Arga Makmur
Kab. Bengkulu Utara
Villages Desa Batu Roto
Desa Sumber Agung
IM : 3.78%
Ash : 6.03%
TS : 1.15%
Distance to the Port 87 km
Figure 15: RSM Block 7 Seam Cross Section
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3.6 Block 9
SK No : 348 Thn 2011
Date : 28 Dec 2011
Coordinates 102 28 26.69 (BT);3 37
25.19(LS)
102 28 32.59(BT);3 37 25.19
(LS)
102 28 32.59(BT);3 37 53.59
(LS)
102 28 46.42(BT);3 37
53.54(LS)
Area 5196.79 ha
Region Kec.Merigi Sakti
Kec.Taba Penanjung
Kab.Bengkulu Tengah
Villages Desa Penembang
Desa Jambu
Desa Talang Bajak
Desa Ridu Hati
TM : 3.4%
Ash : 14.3%
TS : 0.48%
Distance to the Port 50 km
Figure 17: RSM Block 9 Pit Location & Layout
17 | P A G E
4. Infrastructure and Logistics

RSM is a fully operational coal mining company that has been mining coal for a number of years and has
extracted in excess of 1 million tonnes of premium grade thermal coal from its concessions in the Bengkulu
Region. For this reason, the requirement for investment in infrastructure to recommence production is
significantly reduced as compared to starting up a new mining operation. Additionally, RSM still has on the
payroll a large contingent of personnel who hold key positions in the mining operations and are ready to
resume operations. Currently they ensure the ready state of the operations and that infrastructure, facilities,
fixed plant and mobile equipment is maintained in good operational condition.
The mining operations are relatively close to the coal terminal at Palau Baai and RSMs regional offices are
located in Kota Bengkulu. In Blocks 2 & 3 (the main production Blocks) there is a significant base camp and
facilities to support the ongoing mining operations.
Set out below is a summary of infrastructure and logistics:
4.1 Bengkulu
The regional office is conveniently located in Kota
Bengkulu. The office is the central operational
command post for RSM in the region. Senior site
management and the functions of; external and
government relations, logistics and treasury are
also conducted from this office. RSM leases senior
staff accommodation guest houses and a mess in
Bengkulu.
4.2 Palau Baai Coal Stockyard

RSM,s Pulau Baai coal stockyard is located on the water front in Pulau Baai some 2km from the Pelindo
coal loading terminal. It consists of a 4ha compound with capacity for 200kt product coal stock. It includes a
weighbridge, 300tph crushing and screening plant and coal re-handle equipment. It has a loading wharf
with capacity to load 10,000t (300ft) barges.
RSM Crusher Plant Pelindo Coal Terminal Pulau Baai (arrow to

RSM/Pelindo)
18 | P A G E
4.3 Coal Roads

Coal is transported from the mine to the dedicated run-of-mine (ROM) stockpile on company roads using
20 tonne off-highway trucks. From the ROM it is transported on a combination of company, regional and
provincial roads to Pulau Baai stockpile in Pulau Baai. Company roads are generally unsealed, regional
roads are sealed but have sections that have deteriorated and provincial roads are paved sealed highways.
The map below shows the route and type of road for each Block.
Figure 18: Coal Haul Roads
19 | P A G E
4.4 Mine
4.4.1 Mine Facilities
Shared between the 2 current operating pits of Block 2 & 3, there is an extensive base camp located
some 0.6km from the southern boundary of Block 3 in close proximity to the village of Sekayun. The
camp is complete with high standard mine offices, mess and accommodation quarters for 150
operators and staff. It includes senior staff accommodation and a managers residence. The camp
has a large, well fitted-out workshop and warehouse, capable of servicing and repairing large mining
equipment. Other essential facilities included in the camp compound, are; fuel depot, clinic, masjid,
security services and nursery.
The camp is complete with essential services, including; reticulated potable water supply, reticulated
power supply direct from PLN with backup generator for all amenities, communications; mobile
telephone and internet supplied by microwave link from Telcomsel as the provider.
The Company has an explosive/ammunition storage magazine and although the buildings have been
relocated the bunded fenced site remains intact.
The company will re-commence mining operations using contractors and it is intended to share the
extensive camp facilities with the mining contractor in order to defray overhead costs.
4.4.2 Other Major Assets

Other significant assets that are in operational condition include:
9 - Large mobile tower lighting plants.
8 - Water pumps; skid mounted and submersible.
3 - Large generator sets.
25 - Light vehicles and light trucks.
3 - Vehicular weigh-bridge.
20 | P A G E
1 - Twin roll crushing and screening plant ~300 tph.

4 - Various large compressors.
1 - Drill & blast drill rig.
Extensive stocks of spare parts.
Minor assets include; mine planning hardware and software, survey total station, computers,
furniture, soft furnishings and white goods for the offices and camp.
Lighting Plants Pumps
4.4.3 Land
The total area of the mining leases held by RSM: - 11,920 hectares.
Land for which compensation has been made: - 683 hectares.
Land purchased outright (Hak Milik): - 69 hectares.
21 | P A G E
5. Surface Coal Mining Operations

5.1 Overview
RSM has been actively exploring for coal in Bengkulu region and has concentrated on the 3 upper seams
in the Middle Miocene Lemau Formation. S3 is the lower seam in the sequence and is the main production
seam. RSMs focus has been on exploiting the Coal Resources using surface mining methods and to-date
40 percent of the combined area in all concessions has been explored. 92Mt Coal Resources have been
delineated; 5.39Mt are at depth of 0-50m and 22.02 Mt at depth of 50-100m, all of which have potential for
surface coal mining operations. See table below:
Table 6: Surface Mining Coal Resource at <100m Depth

0-50m (Mt) 0.54 0.76 0.95 2.84 0.05 0.25 5.39
50-100m (Mt) 1.49 0.94 0.72 14.46 3.99 0.42 22.02
TOTAL (Mt) 2.03 1.69 1.67 17.30 4.05 0.67 27.42
The Coal Resources are based on detailed geological data that conforms to the JORC standard.
5.2 Surface Mining Plan

To recommence surface mining operations, the start-up of production can be achieved very expediently as
infrastructure is in place, support equipment is operational and a complement of skilled staff are also ready
to start the operations.
In preparation to re-commence production the company will repair in-pit roads and culverts that have been
damaged by water erosion and drain the operational pits of any water ingress. Prior to cessation of
operations, in-pit surveys were conducted and working faces and pit shells have been updated, hence mine
planning is up-to-date. There is little or no requirement for pre-stripping of overburden as a number of the
working pits have coal exposed, or coal available at low strip ratio. In Blocks 2 and 3, due to faulting of the
sub-terrain structure and coal deposit, mining will continue to be done in lesser pits using relatively small
equipment. Block 6 will have one large pit with some smaller satellite pits.
Overburden removal and coal mining will be done using contractors mining multiple pits simultaneously to
ensure continuity of the planned production targets. The Company has established a realistic mining plan to
extract coal at a rate of 600kt per month over a 12 year period. With the exception of Block 7, coal will
mined from all Blocks.
Set out below is the mining plan.
Table 7: Surface Mining Production Plan

Insitu tonnes (kt) 543 864 479 4178 0 585 6649
Coal Recovery (%) 95.7% 95.7% 95.7% 95.7% 0.0% 95.7% 95.7%
Product Quality (adb) 6680 6680 5182 6976 0 6421 6742
Strip Ratio (prod. coal) 12.7 13.7 7.6 13.5 0.0 15.5 13.2
Product (kt) 520 827 459 4000 0 560 6365
22 | P A G E
Mine design has incorporated realistic assumptions for mining losses, coal dilution and re-handle in the pit
as set out in the table below to ensure that mining cost do not exceed the plan. Floor dilution of 2% has
been added back into the coal and product quality adjusted accordingly.
Table 8: Surface Mining Assumptions
Description Unit Value

1 Mineable Reserve kt 6,649
2 Annual Production Rate kt 600
Mining Losses % 5%
Dilution % 2%
Insitu Strip Ratio bcm/t 12.87
ROM Strip Ratio bcm/t 13.22
3 Coal Recovery % 95.7%
4 Transport Losses % 2%
5 Product Quality adb kcal/kg 6,742
Product Coal kt 6,496
6 Av. Haul Distance (ROM to Coal Terminal) km 84
5.3 Mining Method

Overburden and coal will be mined using contractors. The selection of a reputed contractor has already
been decided and contract values determined (adjusted for RSMs prevailing conditions). The over burden
and coal will be removed using conventional truck and shovel mining methods. The coal will be transported
to the ROM stockpile located within the Blocks. From there the coal is loaded into on-highway trucks for
transportation to RSMs Pulau Baai coal stockyard, crushed and stockpiled ready for shipment to final
customers. Mining operations will be continuous, working 24 hours per day, 300 days a year (allowing for
non-work days), using a 2 shift, 3 panel roster system.
5.4 Geological Model for Mine Design

The coal concessions collectively have extensive Resources based on geological data which conforms to
the *JORC Code. The mine pit-shells were established based on the geological data from exploration,
using the mining software Surpac. Some 84 pit-shells were run by the Surpac optimizer for each coal
deposit in each Block. The inputs for the optimization was the geological data, coal sample quality, sales
price per tonne of coal and total operating costs per tonne of product coal on-board vessel. The results
from the optimizer for each pit-shell was; Insitu economic coal, over burden removed and strip ratio. The
optimization results were displayed as a revenue curve which clearly depicted the optimum economic pit-
shell to use in the mine design. The results of the optimizer were further compared to break-even analysis
which confirmed the results and selection of the each respective pit-shell.
Following on from actual mining for a number of years, RSM conducted a review of the coal extracted and
over burden removed from the operational pits and compared that to the geological input data used in the
original design of the mining pit. The result was that actual material movement was as per the original
design, thus confirming the geological model that was used.
The results for this comparison is shown in the appendices.
23 | P A G E
Figure 19: Typical Pit Shell
Figure 20: Coal Chain Layout - Mine to Vessel
24 | P A G E
6. Underground Mining Operations

6.1 Overview
RSMs focus has been on exploiting Coal Resources using surface mining methods. To date 40% of the
combined area of all Blocks has been explored and 92 Mt of Coal Resources have been delineated; 27.4
Mt are at depth less than 100m which have potential for surface mining. However, the remaining 64.6 Mt
Coal Resources are at depth greater than 100m, which have potential for underground mining methods.
See table below:
Table 9: Underground Mining Resources at >100m Depth

Coal Resources (Mt) 15.88 0.12 1.35 21.67 20.34 5.22 64.59
More recently RSM has studied the potential and feasibility of underground coal mining in each of the 6
Blocks. The study for the initial underground mine has been narrowed down to the conjunction of Block 3
east and Block 2 west. There is a higher level of confidence in the geological data and modelling of the
Coal Resource in Blocks 2/3 as compared to the other Blocks. Blocks 2/3 have adequate Coal Resources
for an initial mine. The target main seam S3 is suitable for underground mining as it is consistently thicker
than 2.5m and the seam dip is less than 15 degrees. As surface mining is completed, development of the
underground mine will commence with the portal and main road leading in through the coal seam in the
mined-out pit high-wall. Blocks 2/3 are close to RSMs existing infrastructure, negating the need to
construct additional camp and support facilities.
Block 6 & 7 have potential for underground mining as the Coal Resource is very large and the indication is
that the coal also has potential to be metallurgical quality, but due to insufficient geological data to develop
a model, this will require additional drilling and further geological investigation to confirm the underground
mining potential. Similarly, Block 9 has potential for underground mining and with additional exploration, will
become a major underground mining operation.
Underground mining is not uncommon in the Bengkulu Region, as there are several companies close to the
RSMs Block 9 concession that have been mining coal underground very successfully for many years.
The study into underground mining commenced with a number of preliminary studies and finally with a
study into The Potential of Developing an Underground Mine in RSM Concessions by; Coal Resources &
Mining Engineering Co. Ltd. of Japan (CR & ME) and a Pre-Feasibility Study on Underground Mining
Potential also by CR & ME. Note: These documents can be sighted in RSMs Data Room.
The underground mining method described below is based on the work done by CR & ME. The RSM
Summary Business Plan uses the costing established by CR & ME for the underground mining operations
up to the ROM stockpile.
As further exploration work is completed in Blocks 6, 7 and 9 confirming the geology in these Blocks,
underground mining can be considered on a large scale. In which case substantial investment can be
justified with the higher production rates and a long mine life. In this case, main underground roads will be
excavated in rock allowing for easy road maintenance and the use of high productivity continuous mining
equipment with a resultant lower production cost profile.
For the initial underground mine, Blocks 2/3 has sufficient Coal Reserves that meet the criteria for
underground mining. Planning is for total coal extracted of 2 Mt, with an annual production rate of ~180 kt/y
25 | P A G E
and life-of-mine of 13 years. The main road leading in from the high-wall portals will be excavated in the
coal seam so that production can commence during the development period thereby reducing development
costs and development time.
Table 10: Initial Underground Mining Plan

Insitu Tonnes (kt) 1730 250.00 1985
Product Quality (adb) 6680 6680 6680
Product (kt) 1751
6.2 Mining Method

The mining method selected for the initial underground mining operation is the retreating long-wall mining
system, using semi mechanized operations for mining the coal. Panel development is a simple 2 wing
layout. The panel is mined out leaving behind a 40m wide safety pillar between panel and main incline. A
20m pillar is left behind between parallel panels. The roof is temporarily supported by hydraulic supports,
before being allowed to cave in after the coal is extracted. This leads to a higher coal recovery than other
methods such as the Bord and Pillar method for example.
After blasting, coal that is not directly loaded onto the chain conveyor will be recovered using a side dump
loader, which is selected in consideration of the relatively soft under-foot conditions, a side dump loader is
lighter than mechanized shearers. The coal is loaded onto an armored face chain conveyor, which
transports it to the main gate conveyor belt via a feeder breaker. From there is it transferred to the incline
belt for transportation to the horizontal road conveyor for transportation to the ROM coal stockpile where it
is crushed and washed to remove dilution from the mining activity.
26 | P A G E
Figure 21: Underground Panel layout
27 | P A G E
Figure 22: Long-wall Panel layout
Coal production of the long-wall face is based on hydraulic prop recovery rate. With the relatively soft under
foot conditions in Blocks 2/3, it is estimated that one long wall panel can achieve 340 t/d using a continuous
roster of 3 shifts per day. Based on 300 working days per year, the annual production rate is ~ 100 kt/y for
one long-wall. Two long-wall faces are planned for this initial 2 wing panel mining operation with a
combined annual production rate of ~ 200 kt per year.
Transportation of rock out of the mine and materials into the mine will be by battery locomotive on the
horizontal road while on the inclines an endless winch system is installed at the gates.
The initial underground mining plan strategy is to confirm the methodology and economics of underground
mining in RSMs concessions. For this reason, production rate planned is very low at 30tph and the result
of this is a very high disproportionate investment cost due to underutilization of installed plant and
equipment. Irrespective of this, the initial underground mining plan returns a profit.
Underground Coal Resources delineated to date of 64.6 Mt, with only 40 percent of the RSMs combined
concession area explored. With additional infill drilling, RSM has the potential to expand the underground
mining operations by mining multiple Blocks (6, 7 & 9), cutting roads in rock, deploying mechanized
shearers and operating more long-wall faces in each mine. This will then fully utilize below ground
infrastructure, including incline and road transportation systems and above ground coal handling facilities
and will result in a significant reduction in investment and operating cost per tonne of coal produced. Using
mechanized shearers the coal will be mined clean and not require washing, further reducing operating
costs.
28 | P A G E
Figure 23: Layout Surface Facilities
Table 11: Mining Assumptions
Description Unit Value

1 ROM Tonnes kt 1,986
Annual Production Rate kt 180
Clean Coal kt 1,787
2 Area Mined ha 186
Seam Thickness m 2.0 - 2.5
Seam Incline degree < 15
3 Retreating Longwalls (Active) 2
4 Product Quality adb kcal/kg 6,680
Product Coal kt 1,751
5 Haul Distance (ROM to Coal Terminal) km 84
29 | P A G E
7. Recoverable Coal Resources

To date 40% of the combined area of all Blocks has been explored and 92 Mt of Coal Resources have
been delineated. The Coal Resources defined are based on detailed geological data that conforms to the
JORC Code and RSM is in the process of converting all Coal Resources to be JORC Code accredited, this
is expected to be completed this year (2014).
RSM considers the Coal Resources that have been delineated included in the 92 Mt, that are not part of the
current surface and underground mining plans and remains in the ground, have value. A significant
percentage of the delineated Coal Resource is classified as inferred. For the purpose of the Business
Plan, the value of this Coal Resource remaining in the ground after completion of the mining plans is
discounted. Coal Resources classified as surface mining (less than 100 m deep) are discounted by a factor
of 50% of the remaining Coal Resource. Coal Resources classified as underground Coal Resources
(greater than 100 m deep) have been discounted by a factor of 70%. For the purpose of this document, the
discounted Coal Resources are referred to as Recoverable Coal Resources.
RSM considers the value to be:
Recoverable surface Coal Resources (after discount) - USD 0.5 per tonne.
Recoverable underground Coal Resources (after discount) - USD 1.0 per tonne.
The tables below depict the respective Recoverable Coal Resource:
Table 12: Recoverable Surface Mining Coal Resources

Insitu tonnes (Mt) 1.49 0.83 1.19 13.12 4.05 0.09 20.77
Coal Recovery Factor. 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0%
Recoverable Resources (Mt) 0.75 0.42 0.60 6.56 2.02 0.04 10.38
Table 13: Recoverable Underground Mining Coal Resources

Insitu tonnes (Mt) 14.00 0.00 1.35 21.67 20.34 5.22 62.59
Coal Recovery Factor. 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0%
Recoverable Resources (Mt) 4.20 0.00 0.40 6.50 6.10 1.57 18.78
The regional geology and exploration has confirmed that coal seams are presented throughout the region
and in all RSMs concessions. With 40% of the Blocks explored Coal Resources delineated to-date in the
total area of all RSM concessions held in Bengkulu is 92 Mt. With additional exploration in the 60% area
remaining, there is potential for additional Coal Resources to be discovered.
For the purpose of this document RSM has not placed a value on this potential.
30 | P A G E
8. Organization and External Affairs

8.1 Organization
RSM recognizes the need to create an attractive working environment in order to start, maintain and
expand its operation in the remote location of Bengkulu. Supporting infrastructure is in place for Blocks 2 &
3 and as mining progresses, additional infrastructure will be completed in the other Blocks to the same
standard as currently exist in Block 2 & 3. Funds for this and other services including roads have been
included in the business model.
RSM has retained a core of some 40 plus experienced senior and essential mining staff in Bengkulu, who
are on standby ready to recommence the coal mining operation from coal face to ship loading. Other
employees will be recruited to perform the work requiring lesser skills and these include; civil work, security,
messing and housekeeping, office work and the like. The Company will encourage people living in the area
to form Korperasis to perform this work thus assisting the local communities and also help them to become
self-reliant, which is in-line with RSMs mission statement.
All the major activities of the coal mining operations will be performed using contractors. All things being
equal, local contractors will have first preference. In the event that a specialized activity requires a
contractor that is not local, they will be encouraged to hire workers from the local communities surrounding
RSMs sphere of operations.
Set out below the organization structure for RSMs Bengkulu operations depicting the core staff currently on
Standby.
Figure 24: Bengkulu Organization Structure
31 | P A G E
8.2 Environmental
The Company takes its social responsibility seriously and is committed to return the environment back to its
original state when mining is complete. Procedures, systems, and a program of regular monitoring are in
place to ensure that pollutants are controlled and maintained within acceptable levels. Rehabilitation is
carried out on a regular basis and scheduled into the mining plans. Reporting requirements to government
are according to the prevailing regulations.
8.3 Community Development

RSM recognizes (as outlined in the Company Creed) that it has a responsibility to all of the stakeholders
in the Company and this includes the local communities, employees and the Government. The Company
believes that the fundamentals of a sound Community Development Program are to create an environment
in which the Company, Government, local communities and people work and live in harmony helping each
other and devoting their combined attention to contributing to the welfare of the local communities.
The Basic activities of the Community Development Program are as follows:
Health, Nutrition,
Education & Training.
Basic Services and Infrastructure and Public Economic Development.
Preservation of the Culture.
The Company believes that sound education can result in a healthy society, so that the community can be
self-reliant and so develop and enhance their economic situation, and similarly develop their own culture.
8.4 Safety
The Company will adopt its safety, health and loss control (SH&LC) to the well-established International
standards, such as NOSA (National Occupational Safety Association) or OHSAS 18000 (international
occupational health and safety management system).
32 | P A G E
9. Market Outlook
9.1 Thermal Coal Market Demand
Sumatera has 52.5 billion tonnes of coal resources, the largest estimated potential of coal resources in
Indonesia, but currently accounts for less than 10% of annual coal production. Sumatera provides an
untapped coal resource with huge potential for the future.
Seaborne demand for thermal coal is forecast by Wood Mackenzie to grow to 1 billion tonnes by 2020,
increasing by 350 million tonnes (Mt) from 2010. In 2020 the Pacific trade is expected to reach 800 Mt with
Japan, China, India and South Korea the largest importers. In line with demand growth. Asia Pacific
suppliers, primarily Indonesia and Australia, will increase their dominance of seaborne coal supply. The
high grade thermal Coal Resource from the Bengkulu Region places RSM in a unique position to tap into
this growing market.
Figure 25: Thermal Coal Demand Forecast
33 | P A G E
Figure 26: JPUs Average Caloric Value Coal Consumed
Figure 27: Thermal Coal Price Forecast
34 | P A G E
9.2 RSM Coal Quality

RSM premium grade thermal coal is in high demand from the Japanese market place. One attractive
element of RSM coal (Blocks 6 & 7) is the percentage of low volatile matter, which makes the coal suitable
as feed, for Pulverized Coal Injection (PCI), directly into steel making blast furnaces. PCI coal attracts a
price premium over that of normal thermal coal prices. Block 6 north coal quality is typically: CV 5900 Gar;
VM 30% and has potential to be marketed as PCI or coking coal quality.
The graph below depicts the actual quality over time from mining location Block 2 & 3, sold predominantly
into the niche Japanese market. The regression line shows a steady incline in the trend of coal product
quality sold over time with the line intersecting at ~ CV 6575 adb on the left axis and increasing to intersect
the right axis at ~ CV 6750 adb.
Figure 28: Coal Quality Management History
9.3 Thermal Coal Pricing

RSMs product coal is high calorie premium thermal coal, averaging > CV 6700 kcal/kg adb, from 5 of the 7
RSM Blocks. The market for coal is currently depressed and success as a coal supplier in this tight market
not only relies on providing a quality product, but also on reliable production and competitive operational
costs. RSM is well placed meet this challenge. Prices are forecast to strengthen in 2015 at a time when
RSM will be in full operation.
There is still a valid sales contract in-place with CME/JFE - Shoji of Japan to supply 50,000 tonnes of RSM
specification coal with contractual coal price of USD 100.00 per tonne FOB.
35 | P A G E
10. RSM Permits

10.1 Corporate Documents
Permit Description Date Approving Authority
Company Deed of Establishment 07/08/2006 Rizfitriani Alamsyah, Bengkulu
Company Minutes of Meeting 30/12/2008 Rini Yulianti, Bogor

Company Minutes of Meeting 01/11/2011 Rini Yulianti, Bogor
Statement of Shareholders Decision 09/12/2011 Rini Yulianti, Bogor
Company Minutes of Meeting 18/03/2013 Rini Yulianti, East Jakarta
Company approval from Ministry of Justice 05/03/2007 Djuanda Husin, Bengkulu
Approval of Companys deed of amendments to 09/06/2009 Abdul Bari Azed, Director General
articles of association by Ministry of Justice
Decree from Ministry of Justice regarding Deed of 12/04/2011 Rizfitriani Alamsyah, Bengkulu
establishment of limited liability company
Decree from Ministry of Justice regarding Meeting 12/04/2011 Rini Yulianti, Bogor
Minutes
10.2 Operations Permits

Description Permit No/Year Expiry Date
Niaga Mining Exploitation Permit 351/2004 22 Dec 2009
Niaga Hauling and Selling Permit 352/2004 22 Dec 2009
Niaga to RSM Mining Exploitation Permit Handover 327/2007
Niaga to RSM Hauling and Selling Permit Handover 328/2007
Niaga Mining Permit of Operation & Production 271/2010 22 Dec 2012
Block 2 Mining Exploitation Permit 158/2008 17 April 2023
Block 2 Hauling and Selling Permit 159/2008 17 April 2018
Block 2 Mining Permit of Operation & Production 104/2010 17 April 2023
Block 3 Mining Exploitation Permit 160/2008 17 April 2023
Block 3 Hauling and Selling Permit 161/2008 17 April 2018
Block 3 Mining Permit of Operation & Production 104.A/2010 17 April 2023
Merger of Block 2 & 3 Mining Permit of Operation and Production 349/2011 17 April 2023
Block 5 Mining Exploitation Permit 334/2008 12 June 2018
Block 5 PT Niaga to PT RSM Mining Exploitation Handover 323/2008
Block 5 Hauling and Selling Permit Handover 540/27/D6/2008
Block 5 Mining Permit of Operation and Production 280/2012 12 June 2018
Block 6 Mining Exploration Permit 323/2009 27 October 2014
Block 7 Ming Exploration Permit 323/2009 27 October 2014
Block 9 Mining Exploration Permit 155/2010 5 June 2015
Block 9 Mining Exploration Permit Coordinate Change 148/2011 5 June 2015
Block 9 Mining Permit of Operation and Production 348/2011 5 June 2025
36 | P A G E
11. Financial
This chapter summarizes all the inputs and the financial results of RSMs Business Plan. It is shown in 3
sections; Surface Mining (11.1), Underground Mining (11.2) and Recoverable Resources (11.3). Finally the
Enterprise value of RSM is summarized in Section (11.4).
11.1 Surface Mining

Table 14: Assumptions
No. Description Units Total

Equity % 100%
Depreciation yrs 4
Discount Rate % 10%
Government Royalty Rate (Av. All Blks) % 6.9%
VAT (Investment and Operating) % 10%
Corporate Income Tax Rate % 25%
Table 15: Investment
Description Units Total

1 Pre-Ops Capital
Exploration USD 000's 0
Land Compensation USD 000's 1,600
Pit survey, Faces, Slides, Water, Mud USD 000's 80
Geotech Soil Investigation USD 000's 120
Exploration USD 000's 45
ROM Stock Bedding, Drainage, Dirty Coal USD 000's 45
Mobilization (Included in Contract Rate) USD 000's 0
Contractor Site Facilities; Use RSM USD 000's 0
2 Investment Equipment, Facilities
Coal Haul Road Crushing USD 000's 10
Roads, Bridges, Pavement, Grades USD 000's 2,650
River Diversion USD 000's 1,100
Coal Processing Plant USD 000's 0
Coal Terminal USD 000's 300
Mobile Equipment USD 000's 100
Civil Equipment USD 000's 650
Infrastructure USD 000's 650
Other USD 000's 0
Replacement Capital USD 000's 0
Contingency USD 000's 0
VAT USD 000's 546
TOTAL INVESTMENT (Excl. Working Capital) USD 000's 7,896
Notes: Capital investment is minimal as infrastructure and some plant and equipment is still on RSM asset register. There is a
requirement to repair existing concession roads and build additional roads and infrastructure in Block 6.
37 | P A G E
Table 16: Operating Costs
Description Units Cost

1 Operating Costs
Waste - Mining USD / prod t 29.17
Coal - Mining USD / prod t 2.05
Ancillery Mining Costs (Pumping Road Maint etc) USD / prod t 0.10
Coal - Hauling USD / prod t 9.94
Coal - Crushing USD / prod t 1.22
Coal - Processing USD / prod t 0.00
Coal Haul Stockyard to CT USD / prod t 0.76
Coal - Shipping USD / prod t 2.80
Minesite Administration USD / prod t 2.14
Head Office and Marketing USD / prod t 1.02
Drill, Mine Plan, Cons. USD / prod t 0.06
Community Devt USD / prod t 0.12
Rehab and Environment USD / prod t 0.10
Escalation USD / prod t 0.00
Coal Quality Penalty USD / prod t 0.00
Demurrage Fees USD / prod t 0.00
Retribution USD / prod t 0.15
Forestry Fee USD / prod t 0.00
Gov't Royalty USD / prod t 5.86
Mining Lease Land Rental ($39,680/yr) USD / prod t 0.09
VAT USD / prod t 4.47
TOTAL COST USD / prod t 60.06
Notes: Unit costs are what RSM believes is achievable in consideration the TOP Group operates similar mining operations in
Indonesia. Escalation, sales penalties are set at zero for the base Business Plan but are shown in the sensitivity analysis.
Table 17: Profit & Loss
No. Description USD '000 USD per tonne

Sales Revenue 540,167 84.86
Operating Cost 382,311 60.06
Depreciation Allowance 6,006 0.94
Amortization allowance 2,890 0.45
Interest Payment 0 0.00
Taxation 37,240 5.85
1 Net Profit 111,719 17.55
2 Internal Rate of Return 111%
3 NPV Mining Project 59,906
Notes: The Business Plan assumes 100% equity for all Investment with a discount rate of 10%.The discount is calculated based
on the capital asset pricing model which is based on; (i) risk free rate + Beta (volatility) + equity market risk premium.
38 | P A G E
11.2 (Initial) Underground Mining

This model is RSMs Business Plan for the initial trial underground mining operation, which based on the
pre-feasibility study done by CR&ME of Japan. Due to the relatively small tonnes mined in this initial
operation, investment is disproportionately high. For this reason the economics are not representative of a
normal larger scale underground operation. A desk top sensitivity analysis, which is shown in the
appendices demonstrates the potential of an underground operation, in RSMs concessions in Bengkulu,
with a production rate of 600ktpy.
Table 18: Assumptions

Equity % 100%
Depreciation yrs 4
Discount Rate % 10%
Government Royalty Rate % 6%
VAT (Investment and Operating) % 10%
Corporate Income Tax Rate % 25%
Notes: The Business Plan assumes (i) 100% equity for all capital Investment; the discount rate is zero, although in the sensitivity
analysis a discount factor is applied.
Table 19: Investment
Description Units Total

1 Pre-Ops Capital
Surface Facility USD 000's 3,413
Development USD 000's 1,844
2 Investment Equipment, Facilities
Longwall USD 000's 3,777
Ventilation USD 000's 216
Water Drainage USD 000's 370
Transportation USD 000's 617
Coal Transportation USD 000's 2,505
Electric USD 000's 832
Compressed Air USD 000's 455
Safety USD 000's 1,182
Others USD 000's 0
Contingency USD 000's 0
VAT USD 000's 0
TOTAL INVESTMENT (excl. Working Capital) USD 000's 15,209
Notes: As the underground mining plan is an initial mine for RSM, it is based on very small production volumes with a resultant
disproportionate high capital outlay. VAT is shown as zero as this has already been included in each of the investment
categories. The sensitivity analysis demonstrates the full economic potential for the underground mining using a higher
production rate, thereby defraying the capital outlay.
39 | P A G E
Table 20: Operating Costs
Description Units Cost

1 Operating Costs
Material Cost USD / bcm 10.03
Fuel Cost USD / prod t 8.07
Lubricant USD / prod t 0.28
Other Materials USD / prod t 0.91
Labor Cost USD / prod t 18.40
Additional Exploration USD / prod t 0.63
Preparation Cost USD / prod t 0.68
Reject Handling Cost USD / prod t 0.09
Minesite Administration USD / prod t 0.57
Head Office and Marketing USD / prod t 0.57
Drill, Mine Plan, Cons. USD / prod t 0.07
Community Devt USD / prod t 0.14
Rehab and Environment USD / prod t 0.11
Escalation USD / prod t 0.00
Coal Quality Penalty USD / prod t 0.00
Demurrage Fees USD / prod t 0.00
Retribution USD / prod t 0.15
Forestry Fee USD / prod t 0.00
Gov't Royalty USD / prod t 0.06
Mining Lease Land Rental USD / prod t 0.00
VAT USD / prod t 1.09
TOTAL COST USD / prod t 41.85
Table 21: Profit & Loss
No. Description USD '000 USD per tonne

Sales Revenue 148,400 84.74
Operating Costs 73,279 41.85
Depreciation Allowance 9,953 5.68
Amortization allowance 6,256 3.57
Interest Payment 0 0.00
Taxation 14,728 8.41
1 Net Profit 44,184 25.23
2 Internal Rate of Return 9%
3 NPV Mining Project 10,751
40 | P A G E
11.3 Recoverable Resources

Table 22: Recoverable Resources Value

Total Surface Mining Resources Mt 27.42
Remaining Surface Mining Resources Mt 20.77
Estmated Recovery % 50%
Recoverable Surface Resources Mt 10.38
1 Insitu Coal Value USD / t 0.50
Below Ground Mining Resources Mt 62.59
Estimated Recovery % 30%
Recoverable Below Ground Resources Mt 18.78
2 Insitu Coal Value USD / t 1.00
3 Recoverable Resources Value USD 000's 23,968
11.4 RSM Enterprise Value

The table below depicts the Enterprise Value based on the addition of the Surface Mining, Underground
Mining and Recoverable Resources. Depicting the Enterprise Value in this manner allows the reader to
ascertain the contribution of each entity to the total. Further each entity can be treated as a standalone
project.
Table 23: RSM Enterprise Value
No. Description IRR NPV

1 Surface Mining 111% 59,906
2 Underground Mining 9% 10,751
3 Remaining Resource 0 23,968
4 Remaining 60% Unexplored Concession Area 0 0
TOTAL USD (x1000) 94,625
41 | P A G E
11.5 Sensitivity Analysis

The chart below shows the relative impact (sensitivity) on the NPV with changes in the revenue and major
cost variables.
Figure 29: Sensitivity Analysis
Sensitivity
Base
Blue Red
Case
Coal Price
$75 $85 $95
Discount Factor
5% 10% 15%
Cost escalation
10% 10%
Strip Ratio 10% 10%
Fuel Price 10%
-40 -20 0 20 40
Change in NPV ($M)
42 | P A G E
12. Appendices
12.1 Sensitivities Surface Mining
PT. Ratu Samban Mining Surface Mining Sensitivity Analysis on Base Case
Coal Price
Increase Decreases Coal Price Costs Escalate Costs Decrease Strip Ratio Fuel Price
Base Case Discount Factor $10 Increases $10 10% 10% Increase 10% Increases 10%
Project life yrs 13 13 13 13 13 13 13 13
Coal
Mining Reserve kt 6,649 6,649 6,649 6,649 6,649 6,649 6,649 6,649
Product Coal kt 6,366 6,366 6,366 6,366 6,366 6,366 6,366 6,366
Coal Recoverty factor % 96% 96% 96% 96% 96% 96% 96% 96%
Average Product Quality (adb) All Blks Kcal/kg 6,760 6,760 6,760 6,760 6,760 6,760 6,760 6,760
Annual Sales (full prod yrs) kt 586 586 586 586 586 586 586 586
Average Strip Ratio all Blks bcm/t 13 13 13 13 13 13 14 13
Benchmark Product quality kcal/kg 6,700 6,700 6,700 6,700 6,700 6,700 6,700 6,700
Benchmark Coal Price $/t 85.00 85.00 85.00 85.00 85.00 85.00 85.00 85.00
Investment Capital
Working Capital $'000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Pre-ops Investment $'000 1,890 1,890 1,890 1,890 1,890 1,890 1,890 1,890
Investment Capital $'000 6,006 6,006 6,006 6,006 6,006 6,006 6,006 6,006
Total Investment (excl work Cap) $'000 7,896 7,896 7,896 7,896 7,896 7,896 7,896 7,896
Average Sales Price FOB $/t 84.86 84.86 74.86 94.86 84.86 84.86 84.86 84.86
Average Operating Costs $/t 60.06 60.06 59.37 60.75 64.38 55.73 63.26 62.36
Average Cash Margin (GP) $/t 24.80 24.80 15.49 34.11 20.47 29.12 21.60 22.50
Revenue $'000 540,167 540,167 476,510 603,823 540,167 540,167 540,167 540,167
Operating Costs $'000 382,311 382,311 377,916 386,707 409,837 354,786 402,675 396,971
Gross Profit $'000 157,855 157,855 98,594 217,116 130,330 185,381 137,492 143,195
Interest Payment $'000 0 0 0 0 0 0 0 0
Taxation $'000 37,240 37,240 22,425 52,055 30,358 44,121 32,149 33,575
Depreciation $'000 6,006 6,006 6,006 6,006 6,006 6,006 6,006 6,006
Net Profit $'000 111,719 111,719 67,274 156,165 91,075 132,364 96,447 100,724
Discount Rate %/yr 10% 12% 10% 10% 10% 10% 10% 10%
INTERNAL RATE of RETURN (IRR) %/yr 111% 107% 69% 151% 92% 130% 97% 101%
NET PRESENT VALUE (Constant $) Proj. life 59,906 53,676 34,936 84,876 48,308 71,505 51,326 53,729
1|P A G E
12.2 Sensitivities Underground Mining

PT. Ratu Samban Mining Underground Mining Sensitivity Analysis on Base Case
Increase
Base Case Production Zero Discount Coal Price Coal Price Costs Escalate Costs Decrease Fuel Price
Initial Trial Mine 600kt/y Factor Decreases $10 Increases $10 10% 10% Increases 10%
Project life yrs 14 14 14 14 14 14 14 14
Coal
Mining Reserve kt 1,985 5,956 1,985 1,985 1,985 1,985 1,985 1,985
Product Coal kt 1,751 5,254 1,751 1,751 1,751 1,751 1,751 1,751
Coal Recovery Factor % 88% 88% 88% 88% 88% 88% 88% 88%
Average Product Quality (adb) Kcal/kg 6,680 6,742 6,680 6,680 6,680 6,680 6,680 6,680
Annual Sales (full prod yrs) kt 197 591 197 197 197 197 197 197
Benchmark Product quality (adb) kcal/kg 6,700 6,700 6,700 6,700 6,700 6,700 6,700 6,700
Benchmark Coal Price $/t 85.00 85.00 85.00 85.00 85.00 85.00 85.00 85.00
Investment Capital
Working Capital $'000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Pre-ops Investment $'000 5,256 5,273 5,256 5,256 5,256 5,256 5,256 5,256
Investment Capital $'000 9,953 23,273 9,953 9,953 9,953 9,953 9,953 9,953
Total Investment (excl work Cap) $'000 15,209 29,545 15,209 15,209 15,209 15,209 15,209 15,209
Average Sales Price FOB $/t 84.74 85.54 84.74 74.74 94.74 84.74 84.74 84.74
Average Operating Costs $/t 41.85 36.36 41.85 41.85 41.85 44.88 38.81 42.65
Average Cash Margin (GP) $/t 42.90 49.18 42.90 32.90 52.90 39.86 45.94 42.09
Revenue $'000 148,400 449,387 148,400 130,888 165,912 148,400 148,400 148,400
Operating Costs $'000 73,279 191,008 73,279 73,279 73,279 78,602 67,957 74,692
Gross Profit $'000 75,121 258,378 75,121 57,609 92,633 69,798 80,443 73,708
Interest Payment $'000 0 0 0 0 0 0 0 0
Taxation $'000 14,728 57,208 14,728 10,350 19,106 13,397 16,059 14,375
Depreciation $'000 9,953 23,273 9,953 9,953 9,953 9,953 9,953 9,953
Net Profit $'000 44,184 171,625 44,184 31,050 57,318 40,192 48,176 43,124
Discount Rate %/yr 10% 10% 0% 10% 10% 10% 10% 10%
INTERNAL RATE of RETURN (IRR) %/yr 9% 19% 21% 4% 13% 7% 10% 8%
NET PRESENT VALUE (Constant $) Proj. life 10,751 57,494 44,184 4,860 16,607 8,722 12,776 10,196
2|P A G E
12.3 Sensitivities Break-even Analysis

PT. Ratu Samban Mining Break Even Sensitivity Analysis on Base Case
Surface Mining Underground Mining
Base Case Coal Price Costs Base Case Coal Price Costs
Project life yrs 13 13 13 14 14 14
Coal
Mining Reserve kt 6,649 6649 6,649 1,985 1,985 1,985
Product Coal kt 6,366 6,366 6,366 1,751 1,751 1,751
Coal Recovery Factor % 1 1 1
Average Product Quality (adb) Kcal/kg 6,760 6,760 6,760 6,680 6,742 6,742
Annual Sales (full prod yrs) kt 586 586 586 197 197 197
Benchmark Product quality (adb) kcal/kg 6,700 6,700 6,700 6,700 6,700 6,700
Benchmark Coal Price $/t 85 85.00 85.00 85.00 85.00 85.00
Investment Capital
Working Capital $'000 1,000 1,000 1,000 1,000 1,000 1,000
Pre-ops Investment $'000 1,890 1,890 1,890 5,256 5,256 5,256
Investment Capital $'000 6,006 6,006 6,006 9,953 9,953 9,953
Total Investment (excl work Cap) $'000 8,896 8,896 8,896 16,209 16,209 16,209
Average Sales Price FOB $/t 84.86 60.87 84.86 84.74 66.56 85.54
Average Operating Costs $/t 60.06 58.40 82.39 41.85 41.85 58.44
Average Cash Margin (GP) $/t 24.80 2.47 2.47 42.90 24.72 27.10
Revenue $'000 540,167 387,483 540,167 148,400 116,566 149,796

Operating Costs $'000 382,311 371,768 524,452 73,279 73,279 102,343
Gross Profit $'000 157,855 15,715 15,715 75,121 43,287 47,453
Interest Payment $'000 0 0 0 0 0 0
Taxation $'000 37,240 1,705 1,705 14,728 6,769 7,811
Depreciation $'000 6,006 6,006 6,006 9,953 9,953 9,953
Net Profit $'000 111,719 5,114 5,114 44,184 20,308 23,433
Discount Rate %/yr 10% 10% 10% 10% 10% 10%
INTERNAL RATE of RETURN (IRR) %/yr 111% 0% 0% 9% 0% 0%
NET PRESENT VALUE (Constant $) Proj. life 59,906 0 0 10,751 0 0
3|P A G E
12.4 Camp Location & Layout
4|P A G E
12.5 Arial View of Block 6
5|P A G E
12.6 Reconciliation Summary

Ratu Samban Mining Project Reconciliation Summary
Project to Date to 30 Juni 2013
COAL & WASTE IN-SITU WITHIN THE MODEL MINED OUT BOUNDARY AS PER THE MODEL
Total Coal Total Waste SR
Jan- Jun 2009 79,211 631,402 7.97
Jul- Dec 2009 106,567 875,657 8.22
Jan- Jun 2010 104,932 1,383,475 13.18
Jul- Dec 2010 132,883 2,031,309 15.29
Jan-Jun 2011 188,992 2,614,476 13.83
Jul- Dec2011 96,419 2,297,485 23.83
Jan-Jun 2012 117,774 2,069,812 17.57
Jul-Dec2012 71,253 1,377,127 19.33
Jan-13 26,950 202,474 7.51
Feb-13 18,263 134,351 7.36
Mar-13 31,084 268,878 8.65
Apr-13 13,641 268,024 19.65
May-13 14,655 127,221 8.68
Jun-13 1,920 16,533 8.61
TOTAL 1,004,544 14,298,225 14.23

COAL & WASTE ACTUALLY MINED WITHIN THE MODEL MINED OUT BOUNDARY
Notes: Coal on Intermediate S/P Total Coal Total Waste SR
Jan- Jun 2009 66,852 698,584 10.45
Jul- Dec 2009 106,250 1,034,211 9.73
Jan- Jun 2010 120,393 1,617,254 13.43
Jul- Dec 2010 163,777 1,948,819 11.90
Jan-Jun 2011 195,048 2,612,406 13.39
Jul- Dec2011 120,123 2,191,378 18.24
Jan-Jun 2012 126,149 1,941,221 15.39
Jul-Dec2012 83,504 1,486,708 17.80
Jan-13 22,941 232,408 10.13
Feb-13 11,529 129,838 11.26
Mar-13 20,165 246,628 12.23
Apr-13 5,625 273,391 48.60
May-13 15,693 212,022 13.51
Jun-13 447 8,021 17.94
TOTAL 1,058,496 14,632,890 13.82
6|P A G E

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PT.

RATU SAMBAN MINING July 1, 2014

Figure 19: Typical Pit Shell .......................................................................................................................... 24

2. Geology & Exploration

Figure 3: Regional Tectonic Setting of the Bengkulu Basin

Figure 4: Regional Geology

2.2 Exploration Summary

Figure 5: Magnetometer Survey - Block 3

Table 2: Exploration Summary

Blk 2 Blk 3 Blk 5 Blk 6 Blk 7 Blk 9 TOTAL

2.3 Coal Quality

Table 3: Insitu Coal Quality

2.4 Coal Resources

Classification Blk 2 Blk 3 Blk 5 Blk 6 Blk 7 Blk 9 TOTAL

Table 5: Coal Resources Delineated by Depth

Depth Range Blk 2 Blk 3 Blk 5 Blk 6 Blk 7 Blk 9 TOTAL

3. RSM Coal Concessions in Detail

Figure 7: RSM Block 2 Pit Location & Layout

Figure 9: RSM Block 3 - Pit B Pit Location & Layout

Figure 11: RSM Block 5 Pit Layout

Figure 13: RSM Block 6 & 7 Pit Location & Layout

Figure 15: RSM Block 7 Seam Cross Section

4. Infrastructure and Logistics

4.2 Palau Baai Coal Stockyard

RSM Crusher Plant Pelindo Coal Terminal Pulau Baai (arrow to

4.3 Coal Roads

Figure 18: Coal Haul Roads

4.4.2 Other Major Assets

1 - Twin roll crushing and screening plant ~300 tph.

Lighting Plants Pumps

5. Surface Coal Mining Operations

Blk 2 Blk 3 Blk 5 Blk 6 Blk 7 Blk 9 TOTAL

5.2 Surface Mining Plan

Blk 2 Blk 3 Blk 5 Blk 6 Blk 7 Blk 9 TOTAL

Table 8: Surface Mining Assumptions

Description Unit Value

5.3 Mining Method

5.4 Geological Model for Mine Design

Figure 19: Typical Pit Shell

Figure 20: Coal Chain Layout - Mine to Vessel

6. Underground Mining Operations

Blk 2 Blk 3 Blk 5 Blk 6 Blk 7 Blk 9 TOTAL

Blk 2 Blk 3 Blk 5 Blk 6 Blk 7 Blk 9 TOTAL

6.2 Mining Method

Figure 21: Underground Panel layout

Figure 22: Long-wall Panel layout

Figure 23: Layout Surface Facilities

Table 11: Mining Assumptions

Description Unit Value

7. Recoverable Coal Resources

Table 12: Recoverable Surface Mining Coal Resources

Blk 2 Blk 3 Blk 5 Blk 6 Blk 7 Blk 9 TOTAL

Table 13: Recoverable Underground Mining Coal Resources

Blk 2 Blk 3 Blk 5 Blk 6 Blk 7 Blk 9 TOTAL

8. Organization and External Affairs

Figure 24: Bengkulu Organization Structure

8.3 Community Development

Figure 25: Thermal Coal Demand Forecast

Figure 26: JPUs Average Caloric Value Coal Consumed

Figure 27: Thermal Coal Price Forecast

9.2 RSM Coal Quality

Figure 28: Coal Quality Management History

9.3 Thermal Coal Pricing