UNDERWRITING SYNDICATION COMPOSITION TAXATION

Based on the Law of the Republic of Indonesia No. 8, Year 1995 dated November 10, 1995 regarding the Capital Market, an affiliate is defined as a party individual, corporate, joint venture, association or organized group who has: a. A family relationship by either marriage or by blood up to the second degree either horizontally or vertically; b. A relationship between the parties and employees, directors, and commissioners of the Company; c. A relationship between two companies where one or more of the directors or commissioners are the same; d. A direct or indirect relationship between the Company and the parties where the parties are controlled by or control the Company; e. A relationship between two companies that are either directly or indirectly controlled by the same party; or f. A relationship between the Company and the principal shareholder. Except PT Sinarmas Securities, other underwriters participating in this Public Offering explicitly declare not to be affiliated with the Company, direct or indirect, as set forth in Law No. 8 Year 1995 concerning the Capital Market.

3. DETERMINATION OF OFFERED PRICE IN THE PRIMARY MARKET

In the framework of public offering a price is determined based on the results of agreements and negotiations among shareholders, the Company and the underwriters. The determination of Offering Price at Rp2,500, - two thousand five hundred Rupiah was also by considering the results of book building which has been performed by the underwriters through assessment to investors in domestic and international markets and by considering of various factors such as:  The Companys financial performance;  Data and information regarding the Company, the Companys performance, brief history, business prospects and descriptions of coal mining industry in Indonesia;  Assessment to the directors and the management, operation or performance of the Company, both in the past and at present, and business prospects and future earnings prospects;  Assessment based on the ratio PE and EVEBITDA of several public companies listed on stock exchanges which could be used as comparison;  Market conditions at the time book building was performed; and  Investor demand domestic international