Risk of stock price fluctuation

may affect the market price and demands for the Company’s shares. Shares and the Company’s dividends, if any, will be denominated in Rupiah. Fluctuation in the exchange value between Rupiah and other currencies, may affect the value of foreign currency that will be received by foreign shareholders from the sale of the Company’s shares and the value of foreign exchange dividend distribution. There is no public market for the Company’s shares before the Public Offering. The Company has had preliminary listing approval from the Indonesia Stock Exchange to record the Company’s shares and registered at the Indonesia Stock Exchange. This listing does not guarantee that the trading market for the Company’s shares will develop following the liquidity of the market for the Company’s shares. The Company’s shares can be traded at prices significantly below the offering price. Volatility of price of the shares may be caused by factors beyond control of the Company that are unrelated or disproportionate to the results of the Companys operation activities. It is likely to be difficult to assess the Companys performance against of domestic or International measures. Although currently it is intended that the Companys shares will remain listed at the Indonesia Stock Exchange, there is no guarantee that the shares will remain listed. After the Public Offering price of the shares may fluctuate quite large and can be traded at prices below the offering price. This depends on several factors, among others are:  The difference of realizable financial performance and actual operational to that expected by the buyers, investors and analysts;  Announcements made by the Company andor its subsidiaries in connection with the operation or corporate actions such as acquisition of new mining concessions or new concession territories;  Changes in analysts recommendations or perceptions against the Company or Indonesia;  Changes in economic conditions, political or market conditions in Indonesia;  Involvement of the Company and its subsidiaries in litigation cases;  Changes in commodity prices, particularly coal;  Changes in stock prices developing of foreign companies especially in Asia and in countries; and  Global fluctuation in stock prices.

5. Risk of possibility of no dividend payment

The Companys ability to distribute dividends associated with the shares offered will depend on the needs and the availability of cash and the Company’s financial performance in general in the future, which certainly depends also on successful implementation of the Companys growth strategy, business competition, rules and legislation, general economic conditions, demand and supply prices of the products of the Company and its subsidiaries, and other specific factors related to the coal industry or other projects undertaken by the Company. In addition, the Company and its subsidiaries have restrictions as set in their loan agreements in terms of distribution or the amount of dividends that can create a new financing agreement in the future which may provide additional restrictions on the ability of the Company and its subsidiaries to distribute dividends and may cause expenses or liabilities that may reduce cash availability for dividend distribution. Although the Company is the parent company, but its ability to distribute dividends still depends on the ability of subsidiaries in distributing dividends. Determination of the amount of dividends, if any, which will be paid to the Company from its subsidiaries depends on the financial condition, results of operations, cash flow and business prospects in the future. 6. Risk of net asset value of shares offered in the Public Offering is lower than the Offering Price