Administration PT. Bayan Resources Tbk - Prospectus

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 Schedule 538 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 continued

31 March 2007 Unaudited Beginning balance Additions Disposals Reclassifications Ending balance Acquisition cost Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,090 — — — 13,090 Buildings and port facilities . . . . . . . . . . . . . . . . . 500,386 28 — 911 501,325 Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260,295 3,835 — — 264,130 Office furniture and equipment . . . . . . . . . . . . . . . 29,037 310 — — 29,347 Machinery and equipment . . . . . . . . . . . . . . . . . . . 895,606 15,075 142,037 12,368 781,012 Other equipment . . . . . . . . . . . . . . . . . . . . . . . . . . 4,400 — — — 4,400 1,702,814 19,248 142,037 13,279 1,593,304 Under finance leases Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,827 921 — — 30,748 Machinery and equipment . . . . . . . . . . . . . . . . . . . 11,464 178 — — 11,642 41,291 1,099 — — 42,390 Construction in progress Buildings and port facilities . . . . . . . . . . . . . . . . . 162,411 66,089 — 911 227,589 Machinery and equipment . . . . . . . . . . . . . . . . . . . 12,148 2,282 — 12,368 2,062 174,559 68,371 — 13,279 229,651 1,918,664 88,718 142,037 — 1,865,345 Accumulated depreciation Buildings and port facilities . . . . . . . . . . . . . . . . . 155,456 13,027 — — 168,483 Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163,006 9,661 — — 172,667 Office furniture and equipment . . . . . . . . . . . . . . . 15,963 1,221 — — 17,184 Machinery and equipment . . . . . . . . . . . . . . . . . . . 430,294 40,853 37,441 — 433,706 Other equipment . . . . . . . . . . . . . . . . . . . . . . . . . . 1,809 24 — — 1,833 766,528 64,786 37,441 — 793,873 Under finance leases Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,814 1,887 — — 13,701 Machinery and equipment . . . . . . . . . . . . . . . . . . . 893 717 — — 1,610 12,707 2,604 — — 15,311 779,235 67,390 37,441 — 809,184 Net book value . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,139,429 1,056,161 F-55 Schedule 539 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 continued

31 December 2007 Beginning balance Additions Disposals Reclassifications Ending balance Acquisition cost Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,090 — — — 13,090 Buildings and port facilities . . . . . . . . . . . . . . . . . 500,386 78,576 — 194,569 773,531 Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260,295 7,033 233 11,634 278,729 Office furniture and equipment . . . . . . . . . . . . . . 29,037 3,965 — — 33,002 Machinery and equipment . . . . . . . . . . . . . . . . . . 895,606 126,623 301,807 12,395 732,817 Other equipment . . . . . . . . . . . . . . . . . . . . . . . . . . 4,400 — — — 4,400 1,702,814 216,197 302,040 218,598 1,835,569 Under finance leases Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,827 2,968 — 11,634 21,161 Machinery and equipment . . . . . . . . . . . . . . . . . . 11,464 7,415 — — 18,879 41,291 10,383 — 11,634 40,040 Construction in progress Buildings and port facilities . . . . . . . . . . . . . . . . . 162,411 217,497 — 194,569 185,339 Machinery and equipment . . . . . . . . . . . . . . . . . . 12,148 979 — 12,395 732 174,559 218,476 — 206,964 186,071 1,918,664 445,056 302,040 — 2,061,680 Accumulated depreciation Buildings and port facilities . . . . . . . . . . . . . . . . . 155,456 66,278 — — 221,734 Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163,006 40,667 233 8,263 211,703 Office furniture and equipment . . . . . . . . . . . . . . 15,963 5,262 — — 21,225 Machinery and equipment . . . . . . . . . . . . . . . . . . 430,294 144,159 77,617 — 496,836 Other equipment . . . . . . . . . . . . . . . . . . . . . . . . . . 1,809 1,067 — — 2,876 766,528 257,433 77,850 8,263 954,374 Under finance leases Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,814 7,904 — 8,263 11,455 Machinery and equipment . . . . . . . . . . . . . . . . . . 893 3,588 — — 4,481 12,707 11,492 — 8,263 15,936 779,235 268,925 77,850 — 970,310 Net book value . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,139,429 1,091,370 F-56 Schedule 540 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 continued

31 December 2006 Restated Beginning balance Additions Disposals Reclassifications Ending balance Acquisition cost Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,090 — — — 13,090 Buildings and port facilities . . . . . . . . . . . . . . . . . . 311,820 14,750 — 173,816 500,386 Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212,340 48,140 185 — 260,295 Office furniture and equipment . . . . . . . . . . . . . . . 23,636 5,488 87 — 29,037 Machinery and equipment . . . . . . . . . . . . . . . . . . . 576,062 306,332 7,438 20,650 895,606 Other equipment . . . . . . . . . . . . . . . . . . . . . . . . . . 3,627 773 — — 4,400 1,140,575 375,483 7,710 194,466 1,702,814 Under finance leases Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,594 7,397 1,164 — 29,827 Machinery and equipment . . . . . . . . . . . . . . . . . . . 20,650 11,464 — 20,650 11,464 44,244 18,861 1,164 20,650 41,291 Construction in progress Buildings and port facilities . . . . . . . . . . . . . . . . . . 148,528 187,699 — 173,816 162,411 Machinery and equipment . . . . . . . . . . . . . . . . . . . — 12,148 — — 12,148 148,528 199,847 — 173,816 174,559 1,333,347 594,191 8,874 — 1,918,664 Accumulated depreciation Buildings and port facilities . . . . . . . . . . . . . . . . . . 118,463 36,993 — — 155,456 Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127,398 35,793 185 — 163,006 Office furniture and equipment . . . . . . . . . . . . . . . 11,407 4,557 1 — 15,963 Machinery and equipment . . . . . . . . . . . . . . . . . . . 280,293 142,610 1,734 9,125 430,294 Other equipment . . . . . . . . . . . . . . . . . . . . . . . . . . 816 993 — — 1,809 538,377 220,946 1,920 9,125 766,528 Under finance leases Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,805 6,606 597 — 11,814 Machinery and equipment . . . . . . . . . . . . . . . . . . . 6,343 3,675 — 9,125 893 12,148 10,281 597 9,125 12,707 550,525 231,227 2,517 — 779,235 Net book value . . . . . . . . . . . . . . . . . . . . . . . . . . . . 782,822 1,139,429 F-57 Schedule 541 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 continued

31 December 2005 Restated Beginning balance Additions Disposals Reclassifications Ending balance Acquisition cost Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,090 — — — 13,090 Buildings and port facilities . . . . . . . . . . . . . . . . . . 275,176 2,077 — 34,567 311,820 Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153,313 63,331 4,304 — 212,340 Office furniture and equipment . . . . . . . . . . . . . . . . 11,723 11,913 — — 23,636 Machinery and equipment . . . . . . . . . . . . . . . . . . . . 359,487 215,934 — 641 576,062 Other equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . 366 3,261 — — 3,627 813,155 296,516 4,304 35,208 1,140,575 Under finance leases Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,216 12,378 — — 23,594 Machinery and equipment . . . . . . . . . . . . . . . . . . . . 20,650 — — — 20,650 31,866 12,378 — — 44,244 Construction in progress Buildings and port facilities . . . . . . . . . . . . . . . . . . 28,453 154,642 — 34,567 148,528 Machinery and equipment . . . . . . . . . . . . . . . . . . . . 641 — — 641 — 29,094 154,642 — 35,208 148,528 874,115 463,536 4,304 — 1,333,347 Accumulated depreciation Buildings and port facilities . . . . . . . . . . . . . . . . . . 92,171 26,292 — — 118,463 Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,048 49,936 2,586 — 127,398 Office furniture and equipment . . . . . . . . . . . . . . . . 6,481 4,926 — — 11,407 Machinery and equipment . . . . . . . . . . . . . . . . . . . . 160,481 119,812 — — 280,293 Other equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 671 — — 816 339,326 201,637 2,586 — 538,377 Under finance leases Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 5,688 — — 5,805 Machinery and equipment . . . . . . . . . . . . . . . . . . . . 3,398 2,945 — — 6,343 3,515 8,633 — — 12,148 342,841 210,270 2,586 — 550,525 Net book value . . . . . . . . . . . . . . . . . . . . . . . . . . . . 531,274 782,822 Depreciation expense was charged to the following accounts: 31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Costs of revenue refer to Note 23 . . . . . . . . . . . . . . . . . . 59,708 54,996 241,731 194,138 198,580 Deferred exploration and development expenditures . . . . . 2,712 9,150 20,300 12,337 6,278 General and administration expenses refer to Note 25 . . 1,733 1,535 4,028 3,174 5,412 Deferred stripping costs . . . . . . . . . . . . . . . . . . . . . . . . . . . 321 — — — — Construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,709 2,866 21,578 — 64,474 67,390 268,925 231,227 210,270 F-58 Schedule 542 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 continued

During 2007, GBP, FKP, WBM and PIK revised their estimations of the economic useful lives of certain fixed assets. The change was based on a study performed by the operations departments of GBP, FKP, WBM and PIK and comparisons to typical industry practices. This revision is prospectively applied and resulted in increasing the depreciation expense by Rp 2,135 unaudited for the three months period ended 31 March 2007 and Rp 9,895 for the year ended 31 December 2007. Disposals of fixed assets for the three month periods ended 31 March 2008 and 2007 and for the years ended 31 December 2007, 2006 and 2005 were as follows: 31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Book value of disposed fixed assets . . . . . . . . . . . . . . . . . . . 888 104,596 224,190 6,357 1,718 Proceeds of sale of fixed assets . . . . . . . . . . . . . . . . . . . . . . . 28,153 146,375 312,105 10,554 2,272 Gain on sale of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . 27,265 41,779 87,915 4,197 554 The Group’s land rights have either Hak Guna Bangunan “HGB” and Hak Pakai “HP” titles which have useful lives of 20 years. Management believes that there will be no difficulties in the extension of the land rights as the lands were acquired legally and are supported by sufficient evidence of ownership. Borrowing costs capitalised as fixed assets amounted to Rp 1,847 31 March 2007: Rp 7,716— unaudited, 31 December 2007: Rp 37,508, 2006: Rp 27,507 and 2005: Rp nil. As at 31 March 2008, the fixed assets of the Group except construction in progress and assets under finance leases have been insured against physical loss and damages including those arising from earthquake and other possible risks for a sum of Rp 827,725, which is considered adequate by management to cover possible losses arising from such risks. As at 31 March 2008, DPP’s land, buildings and port facilities, machinery and equipment and related insurance coverage were pledged as collateral for the loans due to SMBC and Korea Development Bank refer to Note 17. As at 31 December 2005, DPP’s land was pledged as collateral for the loan due to Sojitz Corporation refer to Note 17. As at 31 March 2008 and 2007 and 31 December 2007, 2006 and 2005, management believes that there was no indication of impairment in the value of fixed assets. Construction in progress Construction in progress represents projects that have not been completed at the balance sheet dates, and includes borrowing costs that are eligible for capitalisation as follows: 31 March 2008 Construction in progress that has not been completed at the balance sheet date Estimated percentage of completion Accumulated costs Estimated completion date Coal loading facility IP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 11,570 September 2008 Coal loading facility PIK Phase 2 . . . . . . . . . . . . . . . . . . . . . 5 12,405 December 2008 Coal terminal- RC-9 and RC- 13 DPP . . . . . . . . . . . . . . . . . 87 20,134 June 2008 Infrastructure facility WBM . . . . . . . . . . . . . . . . . . . . . . . . . 20 12,851 2009 Infrastructure facility IP . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 6,416 December 2008 Others each below 5 of construction in progress . . . . . . Various 15,409 Various 78,785 F-59 Schedule 543 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 continued 31 March 2007 Unaudited

Construction in progress that has not been completed at the balance sheet date Estimated percentage of completion Accumulated costs Estimated completion date Coal loading facility PIK . . . . . . . . . . . . . . . . . . . . . . 70 64,767 October 2007 Infrastructure facility PIK . . . . . . . . . . . . . . . . . . . . . . 70 45,326 October 2007 Coal loading facility WBM . . . . . . . . . . . . . . . . . . . . . 30 33,889 February 2008 Coal terminal expansion DPP . . . . . . . . . . . . . . . . . . . 95 27,716 April 2007 Infrastructure facility FKP . . . . . . . . . . . . . . . . . . . . . 14 26,891 December 2007 Coal loading facility FKP . . . . . . . . . . . . . . . . . . . . . . 14 24,790 December 2007 Others each below 5 of construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Various 6,272 Various 229,651 31 December 2007 Construction in progress that has not been completed at the balance sheet date Estimated percentage of completion Accumulated costs Estimated completion date Coal loading facility WBM . . . . . . . . . . . . . . . . . . . . . 90 148,211 February 2008 Coal terminal- RC-9 and RC- 13 DPP . . . . . . . . . . . . 43 20,121 June 2008 Others each below 5 of construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Various 17,739 Various in 2008 186,071 31 December 2006 Restated Construction in progress that has not been completed at the balance sheet date Estimated percentage of completion Accumulated costs Estimated completion date Coal loading facility PIK . . . . . . . . . . . . . . . . . . . . . . 60 45,582 October 2007 Infrastructure facility PIK . . . . . . . . . . . . . . . . . . . . . . 60 34,659 October 2007 Coal terminal expansion DPP . . . . . . . . . . . . . . . . . . . 90 27,393 April 2007 Coal loading facility WBM . . . . . . . . . . . . . . . . . . . . . 15 21,788 February 2008 Infrastructure facility FKP . . . . . . . . . . . . . . . . . . . . . 25 20,796 December 2007 Others each below 5 of construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Various 24,341 Various 174,559 31 December 2005 Restated Construction in progress that has not been completed at the balance sheet date Estimated percentage of completion Accumulated costs Estimated completion date Coal terminal phase 3B DPP . . . . . . . . . . . . . . . . . . . . 71 146,713 June 2006 Others each below 5 of construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Various 1,815 Various 148,528 Management has no reason to believe that any events may occur that would prevent completion of the construction in progress. F-60 Schedule 544 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

12. DEFERRED EXPLORATION AND DEVELOPMENT EXPENDITURES

31 March 2008 Beginning balance Additions Disposals Ending balance Areas with measured and indicated resources WBM —Satui Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,456 11,643 — 82,099 PIK —Sepaso Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,703 — — 69,703 TSA —KW.03PB0059 Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,454 — — 42,454 FKP —KW.05PB0108 Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,115 70 — 8,185 —KW.03PB0058 Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,520 8,407 — 43,927 GBP —Block-I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,239 879 — 12,118 BT —KW KTN 2004046 Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . 833 68 — 901 238,320 21,067 — 259,387 Areas which do not yet have measured and indicated resources BAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 36 — 157 238,441 21,103 — 259,544 Accumulated amortisation WBM —Blok Satui . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,283 — 1,283 PIK —Sepaso Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,406 1,162 — 4,568 TSA —KW.03PB0059 Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,683 2,740 — 4,423 5,089 5,185 — 10,274 233,352 249,270 F-61 Schedule 545 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

12. DEFERRED EXPLORATION AND DEVELOPMENT EXPENDITURES continued

31 March 2007 Unaudited Beginning balance Additions Disposals Ending balance Areas with measured and indicated resources WBM —Satui Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,260 7,138 — 37,398 PIK —Sepaso Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,765 12,118 — 68,883 TSA —KW.03PB0059 Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,445 2,684 — 33,129 FKP —KW.05PB0108 Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 817 — 817 —KW.03PB0058 Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,019 4,010 — 12,029 GBP —Block-I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,858 81 — 9,939 BT —KW KTN 2004046 Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 35 — 35 IP —Various blocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,423 — 1,423 — 136,770 26,883 1,423 162,230 Areas which do not yet have measured and indicated resources BAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 — — 121 136,891 162,351 F-62 Schedule 546 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

12. DEFERRED EXPLORATION AND DEVELOPMENT EXPENDITURES continued

31 December 2007 Beginning balance Additions Disposals Ending balance Areas with measured and indicated resources WBM —Satui Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,260 40,196 — 70,456 PIK —Sepaso Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,765 12,938 — 69,703 TSA —KW.03PB0059 Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,445 12,009 — 42,454 FKP —KW.05PB0108 Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 8,115 — 8,115 —KW.03PB0058 Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,019 27,501 — 35,520 GBP —Block-I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,858 1,381 — 11,239 BT —KW KTN 2004046 Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 833 — 833 IP —Various blocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,423 — 1,423 — 136,770 102,973 1,423 238,320 Areas which do not yet have measured and indicated resources BAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 — — 121 136,891 102,973 1,423 238,441 Accumulated amortisation PIK —Sepaso Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 3,406 — 3,406 TSA —KW.03PB0059 Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,683 — 1,683 — 5,089 — 5,089 136,891 233,352 F-63 Schedule 547 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

12. DEFERRED EXPLORATION AND DEVELOPMENT EXPENDITURES continued

31 December 2006 Restated Beginning balance Additions Disposals Ending balance Areas with measured and indicated resources WBM —Satui Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,599 16,661 — 30,260 PIK —Sepaso Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,250 26,515 — 56,765 TSA —KW.03PB0059 Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,830 21,615 — 30,445 FKP —KW.03PB0058 Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 761 7,258 — 8,019 GBP —Block-I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,498 360 — 9,858 IP —Various blocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326 1,097 — 1,423 63,264 73,506 — 136,770 Areas which do not yet have measured and indicated resources BAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 44 — 121 63,341 136,891 31 December 2005 Restated Beginning balance Additions Disposals Ending balance Areas with measured and indicated resources WBM —Satui Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,953 6,646 — 13,599 PIK —Sepaso Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,468 13,782 — 30,250 TSA —KW.03PB0058 Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,619 — 1,619 — —KW.03PB0059 Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 8,830 — 8,830 FKP —Kutai Barat Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 680 — 680 — —KW.03PB0058 Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 761 — 761 GBP —Block- I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,195 303 — 9,498 IP —Various blocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,207 21 902 326 36,122 30,343 3,201 63,264 Areas which do not yet have measured and indicated resources BAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 62 — 77 36,137 63,341 F-64 Schedule 548 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

12. DEFERRED EXPLORATION AND DEVELOPMENT EXPENDITURES continued

Ultimate recoupment of exploration expenditure carried forward is dependent upon successful development and commercial exploitation, or alternatively, sale of the area of interest. For the three months period ended 31 March 2008, there was no deferred exploration and development expenditures written-off 31 March 2007: Rp 1,423—unaudited, 31 December 2007: Rp 1,423, 2006: nil and 2005: Rp 3,201. The Group’s management believes that no further provision for impairment of deferred exporation and development expenditures is required as of 31 March 2008.

13. DEFERRED STRIPPING COSTS

31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated GBP Block-II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361,776 244,065 372,643 223,065 182,126 PIK Sepaso Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,992 — 39,018 — — WBM Satui Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,450 — 16,301 — — TSA Utama Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,406 — 165 — — GBP Blok-I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,071 — — — — 470,695 244,065 428,127 223,065 182,126 As of 31 March 2008, the deferred stripping costs in GBP area Block-I represent costs incurred for removal of overburden and for GBP area Block-II, PIK, WBM and TSA, the deferred stripping costs represent the excess of actual stripping costs over the average life of mine stripping cost. The actual average stripping ratio for GBP Block-II in respect of the three months period ended 31 March 2008 was 17.38:1 31 March 2007: 13.32:1—unaudited, 31 December 2007: 14.17:1, 2006: 12.51:1 and 2005: 14.60:1. The estimated life of mine average stripping ratio for GBP was 18.16:1 as at 31 March 2008 and 12:1 as at 31 March 2007 unaudited, 31 December 2007, 2006 and 2005, based on management’s mine plan for those years. The actual average stripping ratio for PIK’s pit in respect of the three months period ended 31 March 2008 was 10.01:1 31 December 2007: 11.15:1. The estimated life of mine average stripping ratio for PIK’s pit is 7.80:1 and 6.50:1 as at 31 March 2008 and 31 December 2007, respectively based on management’s mine plan. The actual average stripping ratio for WBM’s pit in respect of the three months period ended 31 March 2008 was 24.05:1. The estimated life of mine average stripping ratio for WBM’s pit was 12.9:1 as at 31 March 2008. The actual average stripping ratio for TSA’s pit in respect of the three months period ended 31 March 2008 was 21.64:1 31 December 2007: 21.00:1. The estimated life of mine average stripping ratio for TSA’s pit was 13:1 as at 31 March 2008 and 31 December 2007, based on management’s mine plan. Refer to Note 33t for the mine average stripping ratio as at 31 March 2008 measured by Minarco Mineconsult in May 2008. F-65 Schedule 549 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

14. SHORT-TERM LOAN

31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Third party —Merrill Lynch Credit Products LLC “Merrill” . . . . . . . . . 184,340 — — — — Related party —Bayan International Pte. Ltd. “BI” . . . . . . . . . . . . . . . . . . — — — — 243,784 As at 5 March 2008, the Company obtained a working capital loan facility from Merrill with a maximum amount of US20,000,000 of which US10,000,000, US5,000,000 and US5,000,000 should be repaid on 45 th day, 90 th day and fourth months from the date of the agreement, respectively. This loan bears interest at LIBOR plus a margin of 4.5, 5.0, 6.0 and 7.0 for the first, second, third and fourth months, respectively and is guaranteed by a personal guarantee from Low Tuck Kwong and 5 of Low Tuck Kwong’s shares in the Company refer to Note 19. Refer to Note 33k for the settlement of loans to Merrill subsequent to 31 March 2008. On 3 January 2005, DPP obtained credit facility from BI, a company incorporated in Singapore and a related party, with a maximum drawable amount of US15,000,000 to finance the construction of the Phase 3B stage 2 of DPP’s coal terminal expansion. This credit facility was a bridging facility until DPP obtained the credit facility from SMBC. This loan matured on the fifth business day after obtaining the credit facility from SMBC or 3 January 2006, whichever was earlier. The loan bears annual interest at a fixed rate of 10 and was unsecured. On 12 December 2005, the agreement covering the above credit facility was amended whereby the maximum drawable amount was increased to US30,000,000 and the maturity date was changed to the fifth business day after obtaining the credit facility from SMBC or 30 June 2006, whichever was earlier. On 9 May 2006, DPP fully repaid the outstanding balance of this loan amounting to US24,800,000. F-66 Schedule 550 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

15. TRADE PAYABLES

31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Third parties: —PT Petrosea Tbk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144,546 50,013 38,316 50,161 58,729 —PT Indika Inti Corpindo . . . . . . . . . . . . . . . . . . . . . . . . 102,238 87,987 55,233 60,014 — —PT Pelayaran Segara Niaga Utama . . . . . . . . . . . . . . . . 78,463 13,696 67,917 — — —PT Bukit Makmur Mandiri Utama . . . . . . . . . . . . . . . . 66,245 — 14,819 — — —PT Leighton Contractors Indonesia . . . . . . . . . . . . . . . 32,354 — — — — —PT AE Automotion Indonesia . . . . . . . . . . . . . . . . . . . 21,094 11,892 11,172 — — —PT Bangun Karya Pratama Lestari . . . . . . . . . . . . . . . . 21,003 9,971 18,880 9,706 14,495 —PT Kartika Selabumi Mining . . . . . . . . . . . . . . . . . . . . 15,372 14,142 15,712 — — —PT Mineral Exportindo . . . . . . . . . . . . . . . . . . . . . . . . . — — — — 22,417 —PT Atlas Copco Indonesia . . . . . . . . . . . . . . . . . . . . . . — — — — 13,713 —Others each below Rp 10,000 . . . . . . . . . . . . . . . . . . 107,764 80,591 85,438 129,089 53,003 589,079 268,292 307,487 248,970 162,357 Related parties: —PT Nirmala Matranusa . . . . . . . . . . . . . . . . . . . . . . . . . 55,452 17,488 55,822 33 5 —PT Pan Assets Indonesia . . . . . . . . . . . . . . . . . . . . . . . . 11,493 12,498 18,894 3,051 10,767 —PT Lian Beng Energy . . . . . . . . . . . . . . . . . . . . . . . . . . 6,616 12,172 36,061 15,539 24,534 —Bayan International Pte. Ltd. . . . . . . . . . . . . . . . . . . . . 1,708 59,974 13,391 — — —Carbonic International Trading Ltd. . . . . . . . . . . . . . . . — 20,060 — 19,844 16,220 —PT Aneka Samudera Lintas . . . . . . . . . . . . . . . . . . . . . — 39,782 — 18,270 — —Sumcommerce Japan Inc. . . . . . . . . . . . . . . . . . . . . . . . — 1,761 — — — —Others each below Rp 1,000 . . . . . . . . . . . . . . . . . . . — — 60 — — 75,269 163,735 124,228 56,737 51,526 664,348 432,027 431,715 305,707 213,883 Trade payables composition based on currency is as follows: —US Dollars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 536,651 343,014 343,718 227,387 153,891 —Rupiah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118,222 80,440 80,934 71,946 52,693 —Euro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,416 2,016 1,893 2,106 5,469 —Singapore Dollars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,146 561 2,403 1,434 1,164 —Australian Dollars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 625 3,713 2,235 2,616 636 —Japanese Yen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 1,849 97 182 — —Great Britain Pound Sterling . . . . . . . . . . . . . . . . . . . . 103 431 411 36 30 —Malaysian Ringgit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 3 24 — — 664,348 432,027 431,715 305,707 213,883 Total trade payables to related parties represented 2.62, 6.76, 4.75, 2.43 and 2.98 of total liabilities as of 31 March 2008 and 2007 and 31 December 2007, 2006 and 2005, respectively. F-67 Schedule 551 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

15. TRADE PAYABLES continued

The trade payables arose from purchase of goods and services. 31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Details of trade payables from invoice date is as follows: Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154,094 154,311 261,910 191,448 176,027 Overdue: 30 - 90 days . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 430,125 210,992 126,976 51,934 28,988 90 days . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,129 66,724 42,829 62,325 8,868 664,348 432,027 431,715 305,707 213,883 Refer to Note 27 for details of related party transactions.

16. ACCRUED EXPENSES

31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Overburden removal . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117,691 69,303 148,735 104,441 78,223 Fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,919 37,329 47,796 54,918 58,052 Explosives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,970 4,841 16,156 — — Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,710 19,713 1,916 683 2,921 Professional fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,076 1,249 4,292 1,436 892 Fixed assets construction . . . . . . . . . . . . . . . . . . . . . . . . . 7,515 13 8,437 9,214 8,226 Crop compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,115 — — — — Barging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,769 8,299 2,108 670 — Demurrage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,678 3,926 699 4,526 6,123 Equipment rental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 622 2,385 845 7,640 359 Others each below Rp 5,000 . . . . . . . . . . . . . . . . . . . . . 12,693 20,653 13,660 16,215 12,624 237,758 167,711 244,644 199,743 167,420 F-68 Schedule 552 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

17. LONG-TERM LOANS

31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Group Loan from related party —BI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 574,765 1,299,224 697,640 1,314,861 913,732 Current portion —BI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170,278 283,970 229,855 357,560 204,817 Long-term portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 404,487 1,015,254 467,785 957,301 708,915 Third parties —Vitol Asia Pte. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . 457,692 — 470,950 — — —SMBC and Korea Development Bank . . . . . . . . . . . . 226,739 304,541 252,429 321,112 — —Italmatic Singapore Pte. Ltd. . . . . . . . . . . . . . . . . . . 221 — 94 — — —Sojitz Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — 26,053 684,652 304,541 723,473 321,112 26,053 Current portion —Vitol Asia Pte. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,324 — 40,973 — — —SMBC and Korea Development Bank . . . . . . . . . . . . 81,571 80,238 82,887 79,376 — —Italmatic Singapore Pte. Ltd. . . . . . . . . . . . . . . . . . . 221 — — — — —Sojitz Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — 26,053 142,116 80,238 123,860 79,376 26,053 Long-term portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 542,536 224.303 599,613 241,736 — F-69 Schedule 553 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

17. LONG-TERM LOANS continued 31 March 2008

Borrower Lender Total facility Interest Expiry year Covenants and collateral BR Vitol Asia Pte. Ltd. US50,000,000 SIBOR + 1.75 2012 ‰ Consolidated net borrowings shall not exceed 4 times EBITDA Earnings Before Interest, Income Taxes, Depreciation and Amortisation. As at 31 March 2008, the Company meets the required financial ratio. ‰ This loan is secured by 8 of the Company’s shares refer to Note 19 and 8 of the Company’s shares in PIK, IP, TSA, FKP and WBM. DPP BI US 9,000,000 10 2010 ‰ Unsecured BI US15,000,000 10 2010 ‰ Unsecured SMBC and Korea Development Bank US40,000,000 SIBOR + 2.5 2010 ‰ Maintain financial ratio of debt to EBITDA not exceeding 5 times. As at 31 March 2008, DPP meets the required financial ratio. ‰ Maintain US Dollar and Rupiah bank accounts in certain amounts. ‰ Guaranteed by: a. share capital of DPP b. fixed assets of DPP refer to Note 11 c. the proceeds of sales contracts of GBP and Taiwan Power Company refer to Note 6 d. bank accounts at SMBC refer to Note 9 e. coal handling services terminal contract between DPP and the Company and GBP f. a corporate guarantee from BI WBM BI US25,000,000 10 2012 ‰ Unsecured BI US 5,000,000 10 2010 ‰ Unsecured FKP BI US15,000,000 10 2012 ‰ Unsecured GBP BI US33,000,000 10 2010 ‰ Unsecured BI US16,000,000 10 2009 ‰ Unsecured KOTR Italmatic US 400,000 10 2012 ‰ Unsecured F-70 Schedule 554 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

17. LONG-TERM LOANS continued 31 March 2007 Unaudited

Borrower Lender Total facility Interest Expiry year Covenants and collateral DPP BI US 9,000,000 10 2010 ‰ Unsecured BI US15,000,000 10 2010 ‰ Unsecured BI US 5,000,000 10 2009 ‰ Unsecured SMBC and Korea Development Bank US40,000,000 SIBOR + 2.5 2010 ‰ Maintain financial ratio of debt to EBITDA not exceeding 5 times. ‰ Maintain US Dollar and Rupiah bank accounts in certain amounts. ‰ Guaranteed by: a. share capital of DPP b. fixed assets of DPP refer to Note 11 c. the proceeds of sales contracts of GBP and Taiwan Power Company refer to Note 6 d. bank accounts at SMBC refer to Note 9 e. coal handling services terminal contract between DPP and the Company and GBP f. a corporate guarantee from BI IP BI US 8,000,000 10 2012 ‰ Unsecured BI US10,000,000 10 2009 ‰ Unsecured WBM BI US25,000,000 10 2012 ‰ Unsecured BI US 5,000,000 10 2010 ‰ Unsecured PIK BI US30,000,000 10 2012 ‰ Unsecured BI US15,000,000 10 2010 ‰ Unsecured BE BI US11,000,000 10 2012 ‰ Unsecured BI US10,000,000 10 2009 ‰ Unsecured FKP BI US15,000,000 10 2012 ‰ Unsecured TSA BI US 7,500,000 10 2010 ‰ Unsecured BI US10,000,000 10 2012 ‰ Unsecured GBP BI US33,000,000 10 2010 ‰ Unsecured BI US16,000,000 10 2009 ‰ Unsecured F-71 Schedule 555 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

17. LONG-TERM LOANS continued 31 December 2007

Borrower Lender Total facility Interest Expiry year Covenants and collateral BR Vitol Asia Pte. Ltd. US50,000,000 SIBOR + 1.75 2012 ‰ Consolidated net borrowings shall not exceed 4 times EBITDA Earnings Before Interest, Income Taxes, Depreciation and Amortisation. ‰ This loan is secured by 8 of the Company’s shares refer to Note 19 and 8 of the Company’s shares in PIK, IP, TSA, FKP and WBM. DPP BI US 9,000,000 10 2010 ‰ Unsecured BI US15,000,000 10 2010 ‰ Unsecured BI US 5,000,000 10 2009 ‰ Unsecured SMBC and Korea Development Bank US40,000,000 SIBOR + 2.5 2010 ‰ Maintain financial ratio of debt to EBITDA not exceeding 5 times. ‰ Maintain US Dollar and Rupiah bank accounts in certain amounts. ‰ Guaranteed by: a. share capital of DPP b. fixed assets of DPP refer to Note 11 c. the proceeds of sales contracts of GBP and Taiwan Power Company refer to Note 6 d. bank accounts at SMBC refer to Note 9 e. coal handling services terminal contract between DPP and the Company and GBP f. a corporate guarantee from BI IP BI US 8,000,000 10 2012 ‰ Unsecured BI US10,000,000 10 2009 ‰ Unsecured WBM BI US25,000,000 10 2012 ‰ Unsecured BI US 5,000,000 10 2010 ‰ Unsecured FKP BI US15,000,000 10 2012 ‰ Unsecured GBP BI US33,000,000 10 2010 ‰ Unsecured BI US16,000,000 10 2009 ‰ Unsecured KOTR Italmatic US 400,000 10 2012 ‰ Unsecured F-72 Schedule 556 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

17. LONG-TERM LOANS continued 31 December 2006 Restated

Borrower Lender Total facility Interest Expiry year Covenants and collateral DPP BI US 9,000,000 10 2010 ‰ Unsecured BI US15,000,000 10 2010 ‰ Unsecured BI US 5,000,000 SIBOR + 5 2009 ‰ Unsecured SMBC and Korea Development Bank US40,000,000 SIBOR + 2.5 2010 ‰ Maintain financial ratio of debt to EBITDA not exceeding 5 times. ‰ Maintain US Dollar and Rupiah bank accounts in certain amounts. ‰ Guaranteed by: a. share capital of DPP b. fixed assets of DPP refer to Note 11 c. the proceeds of sales contracts of GBP and Taiwan Power Company refer to Note 6 d. bank accounts at SMBC refer to Note 9 e. coal handling services terminal contract between DPP and the Company and GBP f. a corporate guarantee from BI IP BI US 8,000,000 10 2012 ‰ Unsecured BI US10,000,000 SIBOR + 5 2009 ‰ Unsecured WBM BI US25,000,000 10 2012 ‰ Unsecured BI US 5,000,000 SIBOR + 5 2010 ‰ Unsecured PIK BI US30,000,000 10 2012 ‰ Unsecured BE BI US11,000,000 SIBOR + 5 2009 ‰ Unsecured BI US10,000,000 SIBOR + 5 2009 ‰ Unsecured FKP BI US15,000,000 SIBOR + 5 2012 ‰ Unsecured TSA BI US 7,500,000 SIBOR + 5 2010 ‰ Unsecured BI US10,000,000 SIBOR + 5 2012 ‰ Unsecured GBP BI US33,000,000 10 2010 ‰ Unsecured BI US10,000,000 10 2007 ‰ Unsecured BI US16,000,000 10 2009 ‰ Unsecured F-73 Schedule 557 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

17. LONG-TERM LOANS continued 31 December 2005 Restated

Borrower Lender Total facility Interest Expiry year Covenants and collateral DPP BI US 9,000,000 10 2010 ‰ Unsecured BI US15,000,000 10 2010 ‰ Unsecured BI US 5,000,000 SIBOR + 5 2009 ‰ Unsecured Sojitz Corporation US39,275,291 SIBOR + 1.65 2006 ‰ Secured by DPP’s 327,648 square meters of land refer to Note 11. IP BI US 8,000,000 10 2012 ‰ Unsecured BI US10,000,000 SIBOR + 5 2009 ‰ Unsecured WBM BI US 6,000,000 10 2012 ‰ Unsecured BI US 5,000,000 SIBOR + 5 2010 ‰ Unsecured PIK BI US 8,000,000 10 2014 ‰ Unsecured BE BI US10,000,000 SIBOR + 5 2009 ‰ Unsecured TSA BI US 7,500,000 SIBOR + 5 2010 ‰ Unsecured GBP BI US33,000,000 10 2014 ‰ Unsecured BI US10,000,000 10 2006 ‰ Unsecured BI US16,000,000 10 2009 ‰ Unsecured Refer to Note 33h and 33j for repayment of long-term loans subsequent to 31 March 2008.

18. DERIVATIVE INSTRUMENTS

Details of derivative liabilities as at 31 March 2008 and 2007 and 31 December 2007, 2006 and 2005 are as follows: 31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated —Vitol S.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308,642 6,376 268,480 — — —SMBC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,845 4,233 7,137 4,414 — 319,487 10,609 275,617 4,414 — Curent portion —Vitol S.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180,535 6,376 202,840 — — —SMBC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,682 1,115 2,343 1,091 — 184,217 7,491 205,183 1,091 — Long-term portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135,270 3,118 70,434 3,323 — F-74 Schedule 558 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

18. DERIVATIVE INSTRUMENTS continued

Movements in fair value hedging reserve are as follows: 31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226,423 4,414 4,414 — — Fair value —Vitol S.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128,474 6,376 357,199 — — —SMBC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,192 109 3,690 4,414 — Realisation of hedging lossesgain . . . . . . . . . . . . . . . 60,891 337 138,880 — — Fair value hedging reserve . . . . . . . . . . . . . . . . . . . . . . . 297,198 11,236 226,423 4,414 —

a. Coal Swap Transactions

In 2007, the Company entered into a coal price swap contract with Vitol S.A. to hedge future coal sales prices. These transactions are effective cash flow hedges for the purposes of the accounting standard. Such contracts are due in 2009. The underlying pricing is the market price specified by the API 4 coal index. The following coal swap transactions were outstanding as at 31 March 2008: Counter parties Total notional amounts sell MT Deal price buy Total notional amounts buy MT Maturity date Vitol S.A. . . . . . . . . . . . . . . . . . . . . . 405,000 API 4 405,000 31 December 2008 360,000 API 4 360,000 31 December 2009 These contracts had a negative fair value of US31,212,750 31 March 2007: US768,000—unaudited and 31 December 2007: US23,304,000.

b. Interest rate swap transactions

On 18 May 2006, DPP entered into an interest rate swap agreement with SMBC with a notional amount of US35,600,000. This transaction is an effective cash flow hedge for the purposes of the accounting standard. Based on the agreement, DPP will pay quarterly interest at the fixed annual rate of 8.22 on the last day of March, June, September and December starting 31 March 2007 until 31 December 2010. This contract had a negative fair value of US1,176,728 31 March 2007: US464,274—unaudited, 31 December 2007: US757,692 and 2006: US489,395. Refer to Note 33j for termination of an interest swap agreement with SMBC subsequent to 31 March 2008. F-75 Schedule 559 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

19. SHARE CAPITAL

The Company’s shareholders as at 31 March 2008 and 2007 and 31 December 2007, 2006 and 2005 are as follows: 31 March 2008 Issued and fully paid capital Shareholders Number of shares Value Low Tuck Kwong . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,250,000,000 225,000 75 Jenny Quantero . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450,000,000 45,000 15 Engki Wibowo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000,000 30,000 10 3,000,000,000 300,000 100 31 December 2007 Issued and fully paid capital Shareholders Number of shares Value Low Tuck Kwong . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225,000 225,000 75 Jenny Quantero . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000 45,000 15 Engki Wibowo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000 30,000 10 300,000 300,000 100 31 March 2007 Unaudited, 31 December 2006 and 2005 restated Issued and fully paid capital Shareholders Number of shares Value Low Tuck Kwong . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500 7,500 75 Jenny Quantero . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 1,000 10 Engki Wibowo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 1,000 10 PT Ima Global Link . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500 500 5 10,000 10,000 100 As at 31 March 2008, the Company’s authorised capital is 12,000,000,000 shares 31 March 2007: 10,000—unaudited, 31 December 2007: 500,000, 2006 and 2005: 10,000 shares. As at 31 March 2008, 5 and 8 of the Company’s share capital owned by Low Tuck Kwong was pledged as collateral for the loan due to Merrill refer to Note 14 and Vitol Asia Pte. Ltd., respectively refer to Note 17. Based on a Circular Resolution of Shareholders dated 27 November 2007 which was legalised through Notarial Deed No. 57 of Yani Indrawaty Wibawa S.H., notary in Jakarta, dated 27 November 2007, the shareholders of the Company decided to approve the transfer of 500 shares owned by PT Ima Global Link to Jenny Quantero. Based on the Company’s Circular Resolution of Shareholders dated 6 December 2007, which was legalised through Notarial Deed No. 22 of Yani Indrawaty Wibawa, S.H., notary in Jakarta, dated 6 December 2007, the Company’s shareholders decided to increase authorised capital from Rp 10,000 to Rp 500,000 and issued and fully paid capital from Rp 10,000 to Rp 300,000. Based on an Extraordinary General Meeting of Shareholders on 18 March 2008, which was legalised by Notarial Deed No. 87 dated 18 March 2008 of Sutjipto S.H., notary in Jakarta, the shareholders decided to F-76