BUSINESS STRATEGY AND DEVELOPMENT PLAN

achieve this goal, the Company and its subsidiaries determine the primary business strategy which includes:  Increase in coal production The Company plans to increase the coal production capacity from 2.0 million tons in 2010 to become 40 million tons in the period of eight years ahead. The biggest contribution of this increase in production capacity is planned to be obtained from Kusan and Girimulya blocks in the coal mining area of BIB.  Improvement in mining cost efficiency The company has a competitive advantage in terms of mining operational costs by the open-cut mining method, relatively low stripping ratio and the proximity of the mining location to port facilities. The Company is committed to continue striving to improve the efficiency of coal production costs in the long run by selectively choosing mining contractor services, coal transportation and shipping contractors in line with an increase in coal production capacity of the Company.  Development and improvement of customer relations The Company and its subsidiaries are committed to continue to foster good relations with current existing customers. In the meantime, considering that currently most of coal sales of the Company and its subsidiaries are performed in spot sales, the Company and its subsidiaries also plan to enhance the good relationships with customers through the realization of long-term contracts.  Expansion of Market Distribution Network In addition to fostering good relationships with existing customers, the Company plans to expand the marketing network, for both domestic and export needs. The export sales are planned to focus on Asia such as China and India.  Increase in the amount of coal resources and reserves The Company plans to continue its exploration activity and performing continued drilling program to obtain additional coal reserves. The Company will also perform other strategic coal mines acquisition or and optimize the mining plan of the mining locations which are already owned.  Improving the quality of Human Resources The Company realizes that the success of the Company in achieving its objectives is inseparable from the role of human resources owned by the Company. Therefore, the Company constantly strives to develop the human resources sustainably by providing training and education to all employees.  Updating Technology The Company will update the technologies required to support the implementation of mining and production operations.  Development of good relations with local communities The Company is committed to maintain and develop a good relationship with communities around the mine site. The Companys commitment is realizable through the implementation of Corporate Social Responsibility.

14. GOOD CORPORATE GOVERNANCE

The Company always tries to implement the principles of Good Corporate Governance. In this regard, the Company has appointed the Independent Commissioner, Non-Affiliated Director and Corporate Secretary. In addition, the Company is also committed to establish the Audit Committee in accordance with applicable regulations, i.e. at the latest within a period of 6 six months from the date of commencement of listing and trading of the Companys shares at the Stock Exchange.

15. CORPORATE SOCIAL RESPONSIBILITY

To fulfill its corporate social responsibility, the Company has undertaken various activities, among others is the implementation of community development programs and provides guidance regarding health and safety and environmental sustainability that is focused on communities surrounding the mine location. The programs which are implemented by the Company include community relationship development, society empowerment through job creations, infrastructure development and allocation of aid for natural disasters. The performed environmental management, monitoring and reporting includes:  Built settling pond at the mine area  Maintaining pH stability of the water in the settling pond pH of water in the settling pond is between 6 to 9,  Cooperation with the sub contractors to perform the management and storage for Hazardous and Toxic Waste B3 such as used oil, gemuk, used batteries and used machinery cotton waste.  Efforts to minimize the mine waste that can pollute the environment by conducting daily and weekly inspections and monthly evaluations.  Daily monitoring of water quality at the mine location.  Monthly monitoring of water quality at mine location by the Lab.