Risk DISTRIBUTION OF PROSPECTUS AND SHARE SUBSCRIPTION ORDER

capacity, equipments, facilities, services, materials or supplies needed in their operations. Failure by the contractors or subcontractors to comply their obligations in accordance with the existing labor contract, or cancellation or breach against working contract may cause a negative impact on the financial condition, results of operations and the Company’s business prospects. 5. Risk of subsidiaries’ dependence on major installations, equipments, production facilities and other supporting facilities to conduct mining activities Mining activities and the Company’s operations depend on major machineries and equipments, including drilling machine, coal trucks, bulldozers, coal crushing facilities, coal carrier as well and other supporting facilities such as land transportation, ports or other supporting facilities such as land transport, ports, rivers, and seas. Difficulties, damage and operational failure of the machineries and equipments or other supporting facilities of both operated by the Company or its contractors may have a negative impact on the financial conditions, operation results and prospects of the Company’s business. 6. Risk from the ability of the Company and its subsidiaries to obtain and provide fuel, spare parts, and other operational supporting materials Under the terms of most contracts between associated subsidiaries and their respective contractors, provision of spare parts and operational supporting materials is the responsibility of the companies concerned. Delay in the provision of spare parts and other operational supporting materials can inhibit the production process which may cause material loss to the business operations, financial condition, results of operations and prospects of the Company.

7. Risk from

changes in regional or global economic conditions Currently Indonesias economic condition is still significantly influenced by the economic crisis in Asia and the global economic crisis that occurred since 2008. The global crisis also caused declining availability of loanable funds, declining foreign direct investment, global financial institutional failure, decreasing value in global stock market, slowing global economic growth rate and decreasing demand for some commodities. There is no guarantee that economic recovery will continue or economic crisis as previously occurred in Indonesia and Asia Pacific countries will not happen anymore in the future, eventhough the global economy has shown signs of improvement since 2009.

8. Risk from limited services and coal transportation routes