7,390 Mt 8.4 Summary Table of Model Data

5.13 Summary Table of Model Data

Tables 5.3 shows the geological models and modeling data used for the estimate. They have been grouped together to provide an audit trail and to facilitate updates. Table 5.3—Summary of Model Data GBP Block I GBP Block I Geological Model . . . . . . . . . Cilong_Mod0907.grd Keham_Mod0907.grd Quality Model . . . . . . . . . . . . Cilong_Qual0907.grd Keham_Qual0907.grd Optimiser Shell Selected . . . OPT 95 OPT 90 Pit Design . . . . . . . . . . . . . . . Clng_95T Khm_90T ROM Coal In Pit Shell incl non JORC . . . . . . . . . . . . Mt ROM 4.1 0.6 Average Strip Ratio . . . . . . . bcmt ROM 16.8 20.9 Cut off ratio used for estimate . . . . . . . . . . . . . . . bcmt ROM as below as below Breakeven Strip Ratio . . . . . . bcmt ROM 29.5 23.7 Highwall slopes . . . . . . . . . . 45.0 45.0 Lowwall slopes . . . . . . . . . . . Subcrop Subcrop A-28 PT. Gunungbayan Pratamacoal GBP Block 2 OPEN CUT COAL DEPOSIT STATEMENT OF OPEN CUT COAL RESOURCES AND RESERVES AS AT 31 st March 2008. May 2008 Job 3318d_GBP2_May A-29 CONFIDENTIALITY AND USE OF INTELLECTUAL PROPERTY The information contained in this document is solely for the use of the client identified on the coversheet for the purpose for which it has been prepared. This document, comprising figures, tables, appendices or any other inclusions remains the intellectual property of Minarco MineConsult. No party or individual shall copy, modify, or publish the aforesaid material, or any part thereof, without written authorisation from Minarco MineConsult and full and proper acknowledgement of Minarco MineConsult’s contribution. The title of this report and any associated work remains with Minarco MineConsult and does not pass to the Company until all consideration has been paid in full. A-30 EXECUTIVE SUMMARY Minarco-MineConsult Pty Ltd MMC was commissioned by PT. Gunungbayan Pratamacoal to complete an independent estimate hereafter, referred to as the “Statement” of the Open Cut Coal Resources and Reserves of their two adjoining mining tenements PT. Gunungbayan Pratamacoal Block 2 referred to as GBP Block 2 in this report in East Kalimantan, Indonesia. The Statement reports the Coal Resources and Reserves as at 31 st March, 2008 and has been undertaken in compliance with the requirements of the reporting guidelines of the 2004 Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia “The JORC Code”. The GBP lease is located in the province of East Kalimantan, Indonesia, as shown on Figure 1. GBP is one of six coal projects operated by PT. Bayan Resources Bayan and a separate Coal Resource and Reserves report has been prepared for each project. There are two separate mining areas in the GBP lease, Blocks 1 and 2. GBP Block 2 is the subject of this report. A total of up to 14 coal seams Seams S1-14 in ascending stratigraphic order and additional subseams or seam splits have been identified in the GBP Block 2 deposit and they range in thickness up to 3.9 m. The seams are folded around a north plunging syncline, with dips of 10-15 degrees steepening towards the flanks of the syncline. The coal is low Total Moisture TM 7.8, very high Calorific Value CV 7,295 kcalkg gross as received, gar, low ash 3.9 air dried basis, adb bituminous coal with variable sulphur content 0.3-3.7 adb which averages 1.3 adb. Mining commenced in 1998 and production in 2007 totalled 4.1 million tonnes Mt. The mining method can be described as “multi pit, shallow to moderate dip open cut coal mining using truck and shovel equipment in a haulback operation.” Several pits are in operation with overburden being stripped by three principal mining contractors and hauled back into the mined out areas, where the final landform is subsequently rehabilitated. The multiple pits ensure that coal of varying sulphur content can be blended to produce a consistent product. The majority of run-of-mine ROM coal is not washed but is crushed to produce a thermal export coal. A number of coal seams have been partly mined out and some pits have been back-filled. Facilities include offices and a camp with associated road access, power and water supply. There is a small washplant to beneficiate high ash coal. Coal is trucked 25-30 km from the pit to the Manau port on the Kedang Pahu River and is loaded onto 3,500t barges and barged approximately 444 km to the Balikpapan Coal Terminal. In the dry season some coal is trucked a further 14 km to the Tepian Ulak port located on the Mahakam River where barges are ‘topped up’. The Tepian Ulak port is capable of handling 8,000t barges and is approximately 430km to the Balikpapan coal terminal. The deposit has been subject to extensive shallow open hole drilling with drill spacing typically at 50-100 m spacing in the proposed pit areas with “touch” coring of coal seams for obtaining coal samples for analysis. However, due to the absence of geophysical logging, MMC considers the level of confidence of data to be adequate only for Coal Resource estimates of maximum Indicated status. Some of the coal seams have been mined out and Coal Resources are only reported for remaining seams Seams 1-12. The main GBP Block 2 Coal Resources are estimated to total 54 million tonnes Mt, of which 4 Mt are classed as Measured, 31 Mt as Indicated with the balance of 19 Mt as Inferred. Coal Resources have been rounded to the nearest Mt to reflect the order of accuracy of the estimates. The mine has been operating since 1998 and is a mature mine with established infrastructure and position in the market place. The Competent Person for Coal Reserves considers the current mine operation is be technically achievable and commercially viable. He has visited the site and is aware of the status of the operations and issues associated with the mine. It is a complex site as there are a series of mined out pits and rehabilitated areas to consider in the long term mine plan. With recent higher coal prices the previous pit limits have been extended. Underground options are being considered but are not included in this statement. A “breakeven strip ratio” was calculated using actual data from the mine. This estimated the breakeven strip ratio to be 22.4 bcm tonne. Minex optimiser software was used to generate a series of incremental pit shells. This is a three dimensional approach which provides a series of incremental pit shells where each increment is more expensive due to a combination of factors such as depth, strip ratio and coal quality. A-31 Results were examined and compared to a series of manually designed pit shells generated by Bayan. Over 40 pit shells were then evaluated which extended over the various seams. These were cross-checked for tonnes, quality and confidence. Any potential pit areas which had Inferred Resources were excluded from the estimate. This process started with 35 Mt ROM tonnes and after eliminating 9 Mt of lower confidence coal this gave a total of 4 Mt of Proved Open Cut Coal Reserves, 22 Mt of Probable Open Cut Coal Reserves for a total of 26 Mt of Proved and Probable Open Cut Coal Reserves. The average ash is 6.6 adb, CV 7,044 kcalkg gar and the sulphur content 1.2 adb. As received moisture averages 7.8 moisture. The average stripping ratio is 19.4 bcm tonne. All the Coal Reserves are classified based on the level of detail completed in the mine planning and also the level of confidence in the resources. Coal Resources are reported inclusive of Coal Reserves that is, Coal Reserves are not additional to Coal Resources. There are a number of planning issues which may impact on the stated mining reserves. These include: ‰ ongoing exploration drilling and updates to the geological model ‰ inclusion of additional pit survey into the geological model for active mining areas; and ‰ ongoing mine planning including underground opportunities; rehandling of some backfilled dumps to allow access to lower seams; potential high wall mining and more detailed life of mine planning. These issues may cause the pit shells and mining quantities to change in future JORC statements. The Coal Resource estimates in the report were estimated by Mr. William Park, BSc Geology, BEcon, MAIG who is a Member of the Australian Institute of Geoscientists. The estimates are based on information compiled and reviewed by Mr Park. He is a full time employee of MMC and has sufficient experience which is relevant to the style and type of deposit under consideration and to the activity undertaken to qualify him as a Competent Person as defined in the 2004 Edition of the JORC Code. The Coal Reserve estimates in the report were estimated by Mr Paul Westcott BE Mining, Hons, FAusIMM, CPMin, MMICA, MAIME, who is a Chartered Professional Mining Engineer, a Fellow of the Australasian Institute of Mining and Metallurgy, a Member of the American Institute of Mining Engineers, and a member of the Mineral Industries Consultants Association. The estimates are based on information compiled and reviewed by Mr Westcott. He is a full time employee of MMC and has sufficient experience which is relevant to the style and type of deposit under consideration and to the activity undertaken to qualify him as a Competent Person as defined in the 2004 Edition of the JORC Code. This report may only be presented in its entirety. Parties wishing to publish or edit selected parts of the text, or use the Statement for public reporting, must obtain prior written approval from MMC and the signatories of this report. A-32 M A K A S S A R S T R A I T M A K A S S A R S T R A I T Sung ai Belayan ev i R r r e vi R Sen yiur River S. K edang K epala Se kur au R iv er S. Ki nta p K eci l S . K l e d a a n Sungai Mahakam Sung ai Barito 00 °3000 LS 00 °00 00 115 °3000 116 °0000 1° 0 00 LS 1° 0 00 LU 1° 30 0 LS 2° 00 0 LS 116 °3000 117 °0000 117 °3000 118 °0000 115 °0000 2° 30 0 LS 3° 00 0 LS 3° 30 0 LS 00 °3000 LU Mahakam River S. Pi na ng S. B e n g a l o n S. K edang P ahu SAMARINDA KAB. KUTAI TIMUR KAB. KUTAI BARAT KAB. PASIR BALIKPAPAN KALIMANTAN TENGAH TIMUR GBP BLOCK II - LOCATION PLAN JORC RESOURCES AND RESERVES STATEMENT 31st March 2008 Date: May 2008 Job No: 3318M d Figure: 1 PT Bayan Resources Sangkulirang Asemasem SP II BR. TONGKOK TERING Muara Tae TANJUNG BALUI Transhipment point Laminpulut Benanga TABANG Umaq Dian MUARA KAMAN Pendamaran Tuana Tuha Muai Gunung Sari Buluk Sen Penoon KEMBANG JANGGUT KOTA BANGUN D. Semayang Ma. ANCALONG Long Nah SENYIUR Ma.BENGKAL D. Melintang Muara muntai Rimbaayu DAMAI MUARALAWA MELAK B C T MUARA NYAHING TamiangLayang TANJUNG Ampah S . BARI TO BUNTOK BETUNG BANGKANAI KINTAP SUNGAIDANAU BONTANG BANJARMASIN MARTAPURA SANGKULIRANG LONG IKIS T. GROGOT BATULICIN SATUI PELEIHARI Muara Bengalon Lebuk Tutung To Senyiur ± 67 Km LINGAU Sepaso KAB. KUTAI KARTANEGARA KALIMANTAN KALIMANTAN SELATAN MUARATEWEH MUARA PAHU MR.BUNYUT SANTAN TG. MARANGKAYU MUARA BADAK LEBAK CILONG Gulf of Carpentaria INDONESIA K a l i m a n t a n Borneo Balikpapan Palangkaraya Samarinda Pontianak K a l i m a n t a n Laut MALAYSIA BRUNEI DARUSSALAM Bandar Seri Begawan anjungredeb T Banja a rm a sin BLOK II PT.GUNUNG BAYAN PRATAMA COAL BLOK I PT.GBP N 15 30 60 BLOK II PT.GUNUNG BAYAN PRATAMA COAL BLOK I PT.GBP A-33 P S2J.7 P S2K.6 P S4D4A P S1K.4 P S1K.7 P S1K.6 P S1K.3 P S5D7 P S1K.5 P S2K.7 P S4D.5 P S4D.6 P S4D.7 P S7DA.2 Pit S7DA4 PIT S5D4 PIT S6D1E PIT S6D3 PIT S5DA6E PIT S6D2 PIT S6D1 P S2K.5 P S1K.2 P S1K.1 P S5D1 P S2J.10 P S2J.9 P S2J.8 P S9.5 P S9.6 P S9.7 P S9.8 P S5D3 P S5DA.5 P S6DA.4 P S6DA.8 P S2K.6A P S6D5 P S2K.4 P S2K.3 P S2K.2 P S4D3 P S5D2 P S6DA.3 P S4D.2 P S4D4 P S6DA.7 P S11.6 P S6DA.8B P S6DA.9 P S11.7 P S11.5E P S6T7 N P S6T7 N P S2J.1A P S6T.12 P S6T.13 PIT 6.6 P S6T7 EXT P S7T.9 PIT S7T4 PIT S7T3E P S6T5 HWE P S6T7 EXT P S2J.1 P S2J.2 P S2J.3 P S2J.4 P S2J.5 P S2J.6 P S7T.9 P S7T.5A P S6T.7 P S2T.1 P S1.3 P S1.4 P S1.5 P S1.6 P S1.8 P S2T.2 P S2T.5 P S2T.5A P S10.6 EXT P S11.5 P S11T1 PIT S7T8 P S2T.3 PIT S7DA1 EXT P S6DA.5 P S6DA.6 PIT S4J10 E PIT S4J11 E P S6T.14 P S2T.4 A P S2T.4 P S2T.4 B P S8 PS P S7 PS 1 P S5B PT 3 P S5B PT 4 P S5B PT 5 P S5B PT 1 P S5B PT 2 P S7DA.6-7 P S7 PS 2 P S6D4 P S5D6 P S5D5 P S7DA2 EXT PIT S7_10D.1 PIT S7_10D.2 PIT S7_10D.3 PIT S7_10D.4 PIT S7_10D.5 BLOCK DAME BLOCK KLAWIT BLOCK RUSUH BLOCK TLAGA BLOCK JEBOR BLOCK PAYANG TENGAH BLOCK PAYANG SELATAN BLOCK PAYANG UTARA P S5J.7 P S5J.6 P S6J.1E P S6T.11 P S4J.2 P S4J.3 P S4J.5 PIT S4J11 E PIT S4J10 E P S5J.7 P S5J.6 P S5J.7 P S5J.8 P S5J.6 P S6J.4 P S6J.3 P S6J.2 P S4J.5 P S4J.3 PIT S4J10 E PIT S4J10 E P S4J.1 P S4J.5 P S4J.3 P S4J.4 PIT S4J12 E P S4J.12 PIT S4J11 PIT S4J10 Pit S4T3 P S5.4 P S5.4A P S5.5 P S6T7 EXT P S6T6 HWE P S2K.8 P S2K.9 P S2K.1 P S5DA.7 P S7DA.5 P S8DA.6-7 P S10.1 P S10.2 P S10.6 P S10.7 P S10D.4 P S12.04 P S9.1 P S9.2 P S9.4 P S9.3 - KM 22 - KM 23 - KM 24 - KM 19 PROPOSED ROAD 378000E 9946000N 9947000N 9948000N 9945000N 9942000N 9943000N 9944000N 9941000N 9938000N 9939000N 9940000N 9937000N 9934000N 9935000N 9936000N 9933000N 9930000N 9931000N 9932000N 9929000N 9928000N 379000E 380000E 381000E 382000E 383000E 384000E 385000E 386000E 387000E 388000E 389000E 390000E 391000E 392000E 393000E N GBP BLOCK II - SITE LAYOUT JORC RESOURCES AND RESERVES STATEMENT 31st March 2008 Date: May 2008 PT Bayan Resources WASH PLANT Coal ash 30 STOCKPILE Coal WP product STOCKPILE Coal Intermediate 5.1 STOCKPILE Coal ash 30 STOCKPILE GBP OFFICE HOUSING FACILITIES WORKSHOP LEGEND Lease Boundaries Pit Design Rivers and Streams Figure: 2 Job No: 3318M d A-34 SEAM S14A= 0.8 SEAM S14B= 1.69 SEAM S14C= 0.06 SEAM S13A= 0.19 SEAM S13B= 0.22 SEAM S5= 0.88 SEAM S5B= 0.48 SEAM S4B= 1.00 SEAM S4C= 0.17 SEAM S2= 1.11 SEAM S2B= 1.17 SEAM S1A= 0.38 SEAM S1= 0.86 SEAM S1B= 0.11 SEAM S4A= 0.26 SEAM S2A= 0.90 SEAM S13C= 0.16 SEAM S12AU= 0.19 SEAM 12A= 0.44 SEAM S12AL= 0.05 SEAM S12B1= 0.24 SEAM S12B= 0.63 SEAM 12B2= 0.35 SEAM S6A1= 1.14 SEAM S6A2= 0.16 SEAM S6B1= 0.11 SEAM S6B2= 0.28 SEAM S6C1= 0.47 SEAM S6C2= 0.11 SEAM S5A= 0.19 SEAM S10A= 0.53 SEAM 10B1= 0.30 SEAM S10B= 0.76 SEAM 10B2= 0.49 SEAM S11A= 0.19 SEAM S11B= 0.50 SEAM S11C= 0.07 SEAM S9A= 0.20 SEAM S9B= 0.56 SEAM S9C= 0.08 SEAM S8= 0.69 SEAM S7= 1.26 SEAM S7L= 0.09 IB = 12.10m IB = 43.30m IB = 0.50m IB = 49.90m IB = 49.90m IB = 0.50m IB = 17.60m IB = 76.60m IB = 0.30m IB = 42.40m IB = 35.90m IB = 0.20m IB = 2.00m IB = 0.50m IB = 10.50m IB = 9.80m IB = 0.20m IB = 16.40m IB = 0.40m IB = 0.20m IB = 1.60m IB = 1.30m IB = 0.10m IB = 0.20m IB = 1.00m IB = 0.10m IB = 1.90m IB = 0.30m IB = 30.90m IB = 34.10m IB = 14.80m IB = 4.30m IB = 0.50m IB = 24.50m IB = 30.90m IB = 0.40m IB = 41.20m IB = 0.40m IB = 1.20m IB = 0.80m IB = 3.40m IB = 0.50m IB = 44.00m IB = 43.30m OPEN CUT SEAM NAME THICKNESS m CURRENT PROPOSED POTENTIAL OPEN CUT CURRENT PROPOSED POTENTIAL GBP BLOCK II - GENERAL STRATIGRAPHY JORC RESOURCES AND RESERVES STATEMENT 31st March 2008 Date: May 2008 Job No: 3318M d Figure: 3 PT Bayan Resources SEAM NAME THICKNESS m Continued over s s A-35 GBP BLOCK II - CROSS SECTIONS JORC RESOURCES AND RESERVES STATEMENT 31st March 2008 Date: May 2008 Job No: 3318M d Figure: 4 PT Bayan Resources 391000E 391500E 9938000N -50B.D. 0B.D. 50A.D. 100A.D. 381500E 382000E 382500E 9933000N -50B.D. 0B.D. 50A.D. 100A.D. 381000E 381500E 382000E 382500E 383000E 383500E 9938500N SECTION 1 -50B.D. 0B.D. 50A.D. 100A.D. SECTION 2 SECTION 3 BASE OF WEATHERING TOPOGRAPHY BASE OF WEATHERING TOPOGRAPHY TOPOGRAPHY BASE OF WEATHERING SECTION 3 SECTION LOCATIONS N PIT DESIGN PIT DESIGN PIT DESIGN SECTION 1 SECTION 2 A-36 - 0.89 - - 0.80 - - 0.60 - - 0.26 - - 0.10 - - 1.65 - - 1.65 - - 3.62 - - 1.32 - - 1.83 - - 0.95 - - 0.85 - - 0.50 - - 0.50 - - 0.15 - - 0.57 - - 0.67 - - 0.55 - - 0.60 - - 0.67 - - 1.20 - - 0.90 - - 4.15 - - 1.00 - - 1.60 - - 1.60 - - 0.67 - - 0.85 - - 0.81 - - 0.85 - - 0.81 - - 0.95 - - 1.00 - - 1.20 - - 0.82 - - 1.10 - - 0.50 - - 0.79 - - 0.80 - - 1.45 - - 1.00 - - 0.50 - - 0.83 - - 0.20 - - 0.70 - - 0.70 - - 0.82 - - 1.00 - - 0.99 - - 0.73 - - 0.43 - - 0.55 - - 1.10 - - 1.10 - - 1.10 - - 1.02 - - 0.73 - 0.33 - 0.21 - 1.25 - - 1.00 - 0.33 - 0.24 - 0.95 - - 0.25 - - 0.20 - - 0.10 - - 0.05 - - 0.40 - - 1.20 - - 1.00 - - 0.95 - - 2.00 - - 0.66 - - 0.89 - - 0.47 - 1.29 - 1.80 - 0.91 - 0.97 - 1.25 - 1.91 - - 0.80 - - 0.45 - - 0.50 - - 2.36 - - 0.70 - - 3.03 - - 3.28 - - 0.63 - - 0.45 - - 0.70 - - 0.92 - - 0.77 - - 1.10 - - 0.90 - - 0.68 - - 0.80 - - 0.95 - - 0.20 - - 0.15 - - 0.80 - - 0.78 - - 1.03 - - 0.87 - - 0.75 - - 0.15 - - 0.91 - - 0.86 - - 0.83 - - 1.00 - - 0.70 - - 0.41 - - 0.69 - - 1.20 - - 0.45 - 0.98 - 0.68 1.20 - 0.50 - 0.10 - 1.95 - 0.42 - 1.38 - - 1.90 - 2.02 - 0.60 - 2.40 - - 0.54 - - 1.12 - - 0.16 - - 1.10 - - 0.40 - - 0.80 - - 0.01 - - 0.75 - - 0.32 - - 0.49 - - 0.29 - - 0.50 - - 0.32 - - 0.25 - - 0.37 - - 0.01 - - 0.95 - - 0.81 - - 0.01 - - 1.41 - - 1.12 - - 1.12 - - 1.50 - - 0.01 - - 0.01 - - 0.63 - - 0.57 - - 0.46 - - 0.85 - - 0.01 - - 0.45 - - 0.39 - - 0.85 - - 0.85 - - 0.88 - - 0.38 - - 0.70 - - 0.60 - - 0.30 - - 0.49 - - 1.00 - - 0.80 - - 0.81 - - 0.50 - - 0.30 - - 0.58 - - 0.15 - - 0.40 - - 0.82 - - 1.75 - - 0.15 - - 1.30 - - 1.70 - - 0.87 - - 0.65 - - 1.58 - - 1.00 - - 1.31 - - 2.40 - - 1.37 - - 1.52 - - 0.45 - - 3.07 - - 2.80 - - 2.10 - - 1.60 - - 2.45 - - 2.27 - - 0.65 - - 2.56 - - 1.22 - - 1.39 -- 1.70 - - 1.23 - - 1.08 - - 0.25 - - 0.34 - - 0.50 - - 0.75 - - 0.40 - - 0.45 - - 0.95 - - 0.60 - - 0.72 - - 0.80 - - 0.93 - - 0.50 - - 0.86 - - 0.80 - - 0.93 - - 0.60 - - 0.90 - - 0.77 - - 0.50 -- 0.90 - - 0.50 - - 0.80 - - 0.75 - - 0.85 - - 0.52 - - 0.85 - - 0.80 - - 1.45 - - 0.50 - - 0.85 - - 1.20 - - 1.20 - - 2.20 - - 1.85 - SD87 SD247 SD248 SD30 SD30A SD31 SD35 SD37 SD42 SD45 SD45A SD89 SD105 SD107 SD108 SD109 SD110 ST137 ST138 ST888 ST142 ST058 ST309 ST310 ST311F ST315 ST322 ST324 ST325 ST326 ST327 ST328 ST330 ST225 ST072A ST821 ST060 ST329 ST053 ST318 ST072E TP87 TP91 ST323 ST913 ST907 ST072B SD362 SD364 SD368 SD396 SD403 SD88 ST405 ST406 ST059 ST073 SD615 SD778 SD779 SD780 SD840 SD841A SD841B SD842 SD842A SD842B SD843BR SD844 SD845 SD1016 SD1017 SD1018 SD1019 SD1030 SD1031 SD1032 SD1033 SD1034 SD1036 SD1039B SD1073 SD1074 SD1075 SD1091A SD1125 SD1124 SD1123 SD1122 SD1108 SD1109 SD1120A SD1121 SD1107A SD1106 SD1104SD1104A SD1105 SD1104B SD1103 SD1102 SD1100 SD1090 SD1089 SD1088 SD1087 SD1086 SD1085 SD1082 SD1081 SD1080 SD1028 SD1047 SD1046A SD1026 SD1027 SD1043 SD1029 SD1040 SD1045 SD1025 SD1024 SD1021 SD1022R SD1020 SD1163 SD1164 SD1164A SD1165 SD1166 SD1167 SD1168 SD1169 SD1180 SD1181A SD1182 SD1182A SD1183 SD1184 SD1184A SD1185 SD1186 SD1187A SD1188 SD1188A SD1200 SD1201 SD1202 SD1203 SD1204 SD1205 SD1206 SD1207 SD1227 SD1228 SD1228A SD1228C SD1228B SD1224 SD1224R SD1224A SD1225 SD1226 SD1231A SD1231B SD1229A SD1230 SD1230A ST072A SD1239 SD1232 SD1235C SD1235B SD1234 SD1238D SD1233C SD1233L ST455 SD1045 SD1233 SD1233E SD1233F SD1233K SD1238C SD1029C SD1233A SD1233B SD1029D SD1029A SD1029B SD1233H SD1233D SD1233I ST226 SD1238 SD1235E SD1237 ST405A QH2J6_7A QH2J6_8 SD1260 SD1261R SD1262 SD1267A SD1268 SD1265 ST2K5 SD1266 SD1263 SD1264 SD1269 SD1300 SD1301 ST2K2 ST2K3 ST2K4 SD1302 SD1303 SD1304 QH2K3_6A QH2K3_6 SD1305 ST318 ST2K6 SD1306 ST315C ST315B SD1038 SD1072 378000E 9946000N 9947000N 9948000N 9945000N 9942000N 9943000N 9944000N 9941000N 9938000N 9939000N 9940000N 9937000N 9934000N 9935000N 9936000N 9933000N 9930000N 9931000N 9932000N 9929000N 9928000N 379000E 380000E 381000E 382000E 383000E 384000E 385000E 386000E 387000E 388000E 389000E 390000E 391000E 392000E 393000E N BLOCK DAME BLOCK KLAWIT BLOCK RUSUH BLOCK TLAGA BLOCK JEBOR BLOCK PAYANG TENGAH BLOCK PAYANG SELATAN BLOCK PAYANG UTARA LEGEND Lease Boundaries Pit Design Indicated Resources Inferred Resources Drillhole Locations Subcrop - 1.32 - SD42 GBP BLOCK II - RESOURCE LIMITS SEAM S2 JORC RESOURCES AND RESERVES STATEMENT 31st March 2008 Date: May 2008 Figure: 5 Job No: 3318M d PT Bayan Resources A-37 P S2J.7 P S2K.6 P S4D4A P S1K.4 P S1K.7 P S1K.6 P S1K.3 P S5D7 P S1K.5 P S2K.7 P S4D.5 P S4D.6 P S4D.7 P S7DA.2 Pit S7DA4 PIT S5D4 PIT S6D1E PIT S6D3 PIT S5DA6E PIT S6D2 PIT S6D1 P S2K.5 P S1K.2 P S1K.1 P S5D1 P S2J.10 P S2J.9 P S2J.8 P S9.5 P S9.6 P S9.7 P S9.8 P S5D3 P S5DA.5 P S6DA.4 P S6DA.8 P S2K.6A P S6D5 P S2K.4 P S2K.3 P S2K.2 P S4D3 P S5D2 P S6DA.3 P S4D.2 P S4D4 P S6DA.7 P S11.6 P S6DA.8B P S6DA.9 P S11.7 P S11.5E N 7 T 6 S P N 7 T 6 S P P S2J.1A P S6T.12 P S6T.13 PIT 6.6 P S6T7 EXT P S7T.9 PIT S7T4 PIT S7T3E P S6T5 HWE P S6T7 EXT P S2J.1 P S2J.2 P S2J.3 P S2J.4 P S2J.5 P S2J.6 P S7T.9 P S7T.5A P S6T.7 P S2T.1 P S1.3 P S1.4 P S1.5 P S1.6 P S1.8 P S2T.2 P S2T.5 P S2T.5A P S10.6 EXT P S11.5 P S11T1 PIT S7T8 P S2T.3 PIT S7DA1 EXT P S6DA.5 P S6DA.6 PIT S4J10 E PIT S4J11 E P S6T.14 P S2T.4 A P S2T.4 P S2T.4 B P S8 PS P S7 PS 1 P S5B PT 3 P S5B PT 4 P S5B PT 5 P S5B PT 1 P S5B PT 2 P S7DA.6-7 P S7 PS 2 P S6D4 P S5D6 P S5D5 P S7DA2 EXT PIT S7_10D.1 PIT S7_10D.2 PIT S7_10D.3 PIT S7_10D.4 PIT S7_10D.5 BLOCK DAME BLOCK KLAWIT BLOCK RUSUH BLOCK TLAGA BLOCK JEBOR BLOCK PAYANG TENGAH BLOCK PAYANG SELATAN BLOCK PAYANG UTARA P S5J.7 P S5J.6 P S6J.1E P S6T.11 P S4J.2 P S4J.3 P S4J.5 PIT S4J11 E PIT S4J10 E P S5J.7 P S5J.6 P S5J.7 P S5J.8 P S5J.6 P S6J.4 P S6J.3 P S6J.2 P S4J.5 P S4J.3 PIT S4J10 E PIT S4J10 E P S4J.1 P S4J.5 P S4J.3 P S4J.4 PIT S4J12 E P S4J.12 PIT S4J11 PIT S4J10 Pit S4T3 P S5.4 P S5.4A P S5.5 P S6T7 EXT P S6T6 HWE P S2K.8 P S2K.9 P S2K.1 P S5DA.7 P S7DA.5 P S8DA.6-7 P S10.1 P S10.2 P S10.6 P S10.7 P S10D.4 P S12.04 P S9.1 P S9.2 P S9.4 P S9.3 378000E 9946000N 9947000N 9948000N 9945000N 9942000N 9943000N 9944000N 9941000N 9938000N 9939000N 9940000N 9937000N 9934000N 9935000N 9936000N 9933000N 9930000N 9931000N 9932000N 9929000N 9928000N 379000E 380000E 381000E 382000E 383000E 384000E 385000E 386000E 387000E 388000E 389000E 390000E 391000E 392000E 393000E N LEGEND GBP BLOCK II - PITS BY SEAM JORC RESOURCES AND RESERVES STATEMENT 31st March 2008 Date: May 2008 Job No: 3318M d Figure: 6 PT Bayan Resources = Mined Out Areas = Lease Boundary = Seam 1 Pits = Seam 2 Pits = Seam 4 Pits = Seam 5 Pits = Seam 6 Pits = Seam 7 Pits = Seam 8 Pits = Seam 9 Pits = Seam 10 Pits = Seam 11 Pits = Seam 12 Pits A-38 Table of Contents Page No. EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 1. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 1.1 I NTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 1.2 A PPROACH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 1.3 R ELEVANT R EPORT AND S TUDIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 1.4 P REVIOUS C OAL R ESOURCE AND R ESERVE S TATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 2. COMPETENT PERSONS STATEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 3. PROJECT DESCRIPTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 3.1 G ENERAL B ACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 3.2 L OCATION AND T ITLES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 3.3 M INING O PERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 3.4 I NFRASTRUCTURE OF S ITE F ACILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 3.5 T RANSPORT AND C OAL H ANDLING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 3.6 M ARKETING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

4. GEOLOGY, COAL QUALITY AND COAL RESOURCE ESTIMATE . . . . . . . . . . . . . . . . . . .

44 4.1 G EOLOGY O VERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 4.2 C OAL Q UALITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 4.3 G EOLOGICAL D ATABASE AND M ODELLING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 4.4 D ATA V ALIDATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 4.5 G EOLOGICAL C ONFIDENCE AND R ESOURCE C ATEGORIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 4.6 C OAL R ESOURCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 5. COAL RESERVE ESTIMATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 5.1 M INERAL R ESOURCE E STIMATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 5.2 S TUDY S TATUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 5.3 C UT - OFF P ARAMETERS AND P IT L IMITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 5.4 M INING F ACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 5.5 M ETALLURGICAL F ACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 5.6 C OST AND R EVENUE F ACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 5.7 M ARKETING AND P RODUCT S PECIFICATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 5.8 O THER R ELEVANT F ACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 5.9 C LASSIFICATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 5.10 A UDITS AND R EVIEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 5.11 D ISCUSSION OF R ELATIVE A CCURACY AND C ONFIDENCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 5.12 R ESULTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 5.13 S UMMARY T ABLE OF M ODEL D ATA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 A-39 List of Tables Table No. Description Page No. Table 4.1 — Seam Thickness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Table 4.2 — Coal Qualities by Seam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Table 4.3 — Resource Categorisation Parameters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Table 4.4 — Resources Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Table 5.1 — Total Open Cut Coal Reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Table 5.2 — Proved Reserves by Seam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Table 5.3 — Probable Reserves by Seam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Table 5.4 — Summary of Model Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 List of Figures these follow the Executive Summary Figure No. Description Figure 1 Location Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Figure 2 Site Layout . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Figure 3 General Stratigraphy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Figure 4 Cross Sections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Figure 5 Resource Limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Figure 6 Pits by Seam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 A-40

1. INTRODUCTION

1.1 Introduction

Minarco-MineConsult Pty Ltd MMC was commissioned by PT. Bayan Resources hereafter referred to as “Bayan” to complete an independent estimate hereafter, referred to as the “Statement” of the Open Cut Coal Resources and Reserves within the mining tenements of PT. Gunungbayan Pratamacoal Block 2 hereafter referred to as “GBP Block 2” in East Kalimantan, Indonesia. The Statement reports the Coal Resources and Reserves as at 31 st March, 2008 and has been undertaken in compliance with the requirements of the reporting guidelines of the 2004 Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia “The JORC Code”. MMC has adopted the following terms for the reporting of Coal Resources and Reserves: ‰ Coal Resources as used in this report are the same as “Mineral Resource” in The JORC Code and “Geological Resources”, a common term used in the industry. ‰ Coal Resources have been subdivided into Measured, Indicated and Inferred Resources to reflect the confidence in the underlying resource data. ‰ Coal Reserves as used in this report are the same as “Ore Reserves” in The JORC Code and “Mining Reserves”, a common term used in the industry. Coal Reserves include geological and mining losses, roof and floor loss and dilution. ‰ Coal Reserves have been subdivided into Proved and Probable to reflect the confidence in the underlying resource data and mine planning detail. ‰ Marketable Reserves allow for practical yields in a beneficiation plant, which is commonly known in the industry as “product coal”. ‰ Coal Resources are reported inclusive of Coal Reserves, that is, Coal Reserves are not additional to Coal Resources. Additional terminology applied within this report includes the following: ‰ Geological Model or “In Situ” Model is the computerised three dimensional representation of the coal deposit based on topographic survey data, coal seam data derived from outcrop, drillhole or other data points, including coal thickness and quality. ‰ Optimiser is the Minex software applied to the geological model to determine the economic pit limits by the application of such factors as geological and mining losses, loss and dilution, geotechnical slope design and costrevenue inputs. ‰ Run of Mine ROM Coal non-JORC terminology as used in this report is coal in the pit shell after application of geological and mining losses, roof and floor loss and dilution. ROM may include some Inferred coal resources.

1.2 Approach

The process adopted for completing the Statement is described below. 1. An “in situ” geological model was created by Bayan geologists working on the GBP Block 2 project using Mincom software. This model had no cut off criteria applied, hence the term “in situ” model. 2. This model and underlying raw data such as borehole logs and coal quality reports were reviewed by MMC geologist, Mr William Park. 3. The geological model was categorised into Indicated and Inferred confidence areas and then coal volumes, tonnages and qualities were estimated and reported in these categories after applying any cut-off criteria. 4. Cross sections, plans and deposit characteristics such as structure, number and thickness of seams were examined in conjunction with the proposed equipment and mining method to decide on minimum mining thickness, coal losses and dilution factors. These factors were then used to convert the in situ geological model to a ROM model. A-41 5. The Mincom model was then imported into Minex software. The reason for this step was to allow mine planning software called the “Optimiser” to be run. 6. Costs and revenue factors were supplied by Bayan and checked for reasonableness by MMC. These were then converted in a form to suit the Optimiser software and together with other criteria such as depth constraints, geotechnical criteria and minimum mining thickness, a series of pit shells were derived for varying revenue inputs. 7. The optimiser output was then compared to a series of manually designed pit shells generated by Bayan. A total of over 40 pit shells were then evaluated which extended over 10 of the 14 seams. These pit shells formed the basis of the subsequent reserves estimates. 8. The Indicated confidence limits were overlaid on these pit shells and any Inferred tonnes were excluded from the estimate. 9. Each pit was then checked to see that it was “economic” using the “break even strip ratio” calculation. 10. Estimates were adjusted as necessary for mined out coal to the end of March 2008. 11. The Coal Reserves were categorised as Probable based on the Coal Resource confidence and the level of detail in the mine planning. 12. Checks were undertaken and results and supporting information documented in this report.

1.3 Relevant Report and Studies

The following reports, documents and studies were used as reference material in the preparation of the Statement. ‰ Preston, KB and Sanders, RH, “Estimating the In-Situ Relative Density of Coal”, Australian Coal Geology, Vol 9, pp22-26, May 1993. ‰ Australian Guidelines for Estimating and Reporting of Inventory Coal, Coal Resources and Coal Reserves, 2003. ‰ Australasian Code for Reporting of Mineral Resources and Ore Reserves, The JORC Code, 2004. ‰ “PT. Gunungbayan Pratamacoal, GBP Block 2 Open Cut Coal Deposit Statement of Open Cut Coal Resources and Reserves as at 31st December 2007”. MMC Job number 3184M. ‰ “PT. Gunungbayan Pratamacoal, GBP Block 2 Open Cut Coal Deposit Statement of Open Cut Coal Resources and Reserves as at 31 st January 2008”. MMC Job number 3318M_d.

1.4 Previous Coal Resource and Reserve Statements

MMC has previously prepared two Coal Resource and Reserve statements compliant with the JORC Code for this project dated 31st December 2007 and 31 st January 2008. The geological model has not been updated since 31 st January 2008 but there has been some production 471,637 tonnes from February to March 2008. Total Coal Resources are largely unchanged since the previous report with the exception of additional quantities in Seams 7 and 8 which have been extended down dip due to the availability of deeper drill data. Coal seams in several blocks have been upgraded from Indicated to Measured category due to geophysical logging of more recent drillholes and the availability of pit survey data in currently active pits. Coal Reserves have increased due to revision of the mining limits for a number of pits due to increased coal prices and a proportion of Probable Coal Reserves has been upgraded to Proved category due to the upgrade in Coal Resource category to Measured. A-42