Deferred tax assets, net

Schedule 534 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

10. TAXATION continued d. Deferred tax assets, net continued

31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Consolidated Tax losses carried forward . . . . . . . . . . . . . . . . . . . . . . . . 88,289 33,465 106,762 52,342 69,793 Difference between commercial and tax net book value of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,210 18,960 28,506 12,694 35,930 Provision for employee benefits . . . . . . . . . . . . . . . . . . . . 1,362 837 1,161 853 1,493 Allowance for obsolete inventory . . . . . . . . . . . . . . . . . . . 760 154 409 87 460 Deferred exploration and development expenditure . . . . . 36,474 21,128 53,753 26,629 10,627 Deferred stripping costs . . . . . . . . . . . . . . . . . . . . . . . . . . 15,530 — 16,778 — 40,494 Finance leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 975 58 3,119 — 3,090 Allowance for doubtful accounts . . . . . . . . . . . . . . . . . . . — — — — 44 66,642 32,230 63,188 39,347 53,509 Unrecognised deferred tax assets . . . . . . . . . . . . . . . . . . . 3,202 — 4,456 — — 63,440 32,230 58,732 39,347 53,509 Deferred tax assets at the beginning of the periodyear . . 58,732 39,347 39,347 53,509 91,931 Charge to consolidated statements of income . . . . . . . . . . 4,708 7,117 19,385 14,162 38,422 Deferred tax assets at the end of the periodyear . . . . . . . 63,440 32,230 58,732 39,347 53,509 F-51 Schedule 535 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

10. TAXATION continued e. Deferred tax liabilities, net

31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated The Company Deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — — Deferred tax liabilities at the beginning of the periodyear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — — Charge to consolidated statements of income . . . . . . . . . . — — — — — Deferred tax liabilities at the end of the periodyear . . . . . — — — — — Subsidiaries Tax losses carried forward . . . . . . . . . . . . . . . . . . . . . . . . . 70,401 47,320 37,858 27,814 — Difference between commercial and tax net book value of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,119 24,655 41,426 29,851 — Provision for employee benefits . . . . . . . . . . . . . . . . . . . . . 1,478 1,231 1,266 1,135 — Provision for demobilisation . . . . . . . . . . . . . . . . . . . . . . . 777 — — — — Allowance for obsolete inventory . . . . . . . . . . . . . . . . . . . 427 229 229 — — Deferred stripping costs . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,300 73,220 111,793 60,749 — Deferred exploration and development expenditure . . . . . 22,879 13,641 — — — Finance leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,325 1,119 501 4,190 — 39,302 12,307 30,513 6,139 — Deferred tax liabilities at the beginning of the periodyear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,513 6,139 6,139 — — Charge to consolidated statements of income . . . . . . . . . . 8,789 6,168 24,374 6,139 — Deferred tax liabilities at the end of the periodyear . . . . . 39,302 12,307 30,513 6,139 — Consolidated Tax losses carried forward . . . . . . . . . . . . . . . . . . . . . . . . . 70,401 47,320 37,858 27,814 — Difference between commercial and tax net book value of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,119 24,655 41,426 29,851 — Provision for employee benefits . . . . . . . . . . . . . . . . . . . . . 1,478 1,231 1,266 1,135 — Provision for demobilisation . . . . . . . . . . . . . . . . . . . . . . . 777 — — — — Allowance for obsolete inventory . . . . . . . . . . . . . . . . . . . 427 229 229 — — Deferred stripping costs . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,300 73,220 111,793 60,749 — Deferred exploration and development expenditure . . . . . 22,879 13,641 — — — Finance leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,325 1,119 501 4,190 — 39,302 12,307 30,513 6,139 — Deferred tax liabilities at the beginning of the periodyear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,513 6,139 6,139 — — Charge to consolidated statements of income . . . . . . . . . . 8,789 6,168 24,374 6,139 — Deferred tax liabilities at the end of the periodyear . . . . . 39,302 12,307 30,513 6,139 — F-52 Schedule 536 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

10. TAXATION continued f. Tax audits

Company Decision letter issuance date Fiscal year Type of taxes Underpayment overpayment or fiscal loss full amount Objection according to the Group full amount Status as at the date of the report IP 3 and 14 April 2008 2005 Income tax article 21, 23, 26 and VAT Underpayment of Rp 1,244,114,841 Underpayment of Rp 283,605 In appeal process 14 April 2008 2005 Corporate income tax Fiscal loss of Rp 10,106,610,710 Fiscal loss of Rp 10,196,775,352 In appeal process TSA 11 February 2008 2005 Income tax article 21 and 23 Underpayment of Rp 387,789,485 Nil In appeal process 21 February 2008 2005 Corporate income tax Taxable income of Rp 55,397,063 Fiscal loss of Rp 11,017,221,359 In appeal process PIK 27 June 2007 2005 Income tax article 21 and 23 Underpayment of Rp 1,101,214,446 Nil In objection process 27 June 2007 2005 Corporate income tax Fiscal loss of Rp 8,224,294,695 Fiscal loss of Rp 22,156,768,369 In objection process GBP 19 July, 21 July and 1 August 2005 2003 Income tax article 21, 23, 15, 26, 42 and VAT Nil None — 13 July 2005 2003 Corporate income tax Underpayment of Rp 4,300,782,122 Overpayment of Rp 579,237,238 due to compensation of carried forward fiscal loss since 2002 Objection has been approved 15 August and 19 September 2006 2004 Income tax article 23 and 15 Underpayment of Rp 22,626,961 None — 15 August 2004 2004 Corporate income tax Overpayment of Rp 576,721,852 None — 25 June and 27 June 2007 2005 Income tax article 21, 23 and 42 Underpayment of Rp 948,074,021 Nil In objection process 27 June 2007 2005 Corporate income tax Taxable income of Rp 87,078,762,941 Taxable income of Rp 84,021,158,641 In objection process DPP 1 September 2007 2005 Corporate income tax Overpayment of US166,449 — — As at 31 March 2008, GBP and IP are being audited by Directore General of Tax “DGT” regarding the various taxes for the fiscal year 2006. At the date of this report, the GBP and IP have not yet received the audit results. Management is of the opinion that the results will not have a material adverse impact on the GBP’s and IP’s operations and cash flows.

g. Administration

Under the taxation laws of Indonesia, the Company and the companies within the Group submit tax returns on the basis of self assessment. The DGT may assess or amend taxes within ten years of the time the tax becomes due, or until the end of 2013, whichever is earlier. There are new rules applicable to fiscal year 2008 and subsequent years stipulating that the DGT may assess or amend taxes within five years of the time the tax becomes due. F-53 Schedule 537 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

11. FIXED ASSETS

31 March 2008 Beginning balance Additions Disposals Reclassifications Ending balance Acquisition cost Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,090 — 888 — 12,202 Buildings and port facilities . . . . . . . . . . . . . . . . . . 773,531 3,713 — 159,579 936,823 Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278,729 1,312 — 11,123 291,164 Office furniture and equipment . . . . . . . . . . . . . . . 33,002 1,105 — — 34,107 Machinery and equipment . . . . . . . . . . . . . . . . . . . 732,817 25,598 46,181 732 712,966 Other equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,400 — — — 4,400 1,835,569 31,728 47,069 171,434 1,991,662 Under finance leases Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,161 624 — 11,123 10,662 Machinery and equipment . . . . . . . . . . . . . . . . . . . 18,879 — — — 18,879 40,040 624 — 11,123 29,541 Construction in progress Buildings and port facilities . . . . . . . . . . . . . . . . . . 185,339 53,025 — 159,579 78,785 Machinery and equipment . . . . . . . . . . . . . . . . . . . 732 — — 732 — 186,071 53,025 — 160,311 78,785 2,061,680 85,377 47,069 — 2,099,988 Accumulated depreciation Buildings and port facilities . . . . . . . . . . . . . . . . . . 221,734 20,564 — — 242,298 Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211,703 10,270 — 8,786 230,759 Office furniture and equipment . . . . . . . . . . . . . . . 21,225 1,468 — — 22,693 Machinery and equipment . . . . . . . . . . . . . . . . . . . 496,836 29,581 46,181 — 480,236 Other equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,876 261 — — 3,137 954,374 62,144 46,181 8,786 979,123 Under finance leases Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,455 1,144 — 8,786 3,813 Machinery and equipment . . . . . . . . . . . . . . . . . . . 4,481 1,186 — — 5,667 15,936 2,330 — 8,786 9,480 970,310 64,474 46,181 — 988,603 Net book value . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,091,370 1,111,385 F-54