Total liabilities Interest-bearing debt Total equity 0.2

AdARo ENERgy 2014 ANNuAl REPoRT sTRENGThENiNG ThE cORE fOR busiNEss susTAiNAbiliTY www.AdARo.CoM 63 CTI 5-year Highlights 2010 2011 2012 2013 2014 Key Financial Highlights uS million Total assets 168.2 207.4 151.1 139.6

89.6 Total liabilities

146.3 142.1 95.1 70.2

42.5 Interest-bearing debt

128.0 101.3 74.7 48.0

21.4 Total equity

22.0 65.3 55.9 69.4

47.1 Revenue

292.2 542.3 384.6 344.1 316.3 Operating Statistics Total coal sales Mt 4.4 6.0 4.8 4.7 4.5 Coal from Adaro Mt 3.0 2.4 3.6 3.4 4.1 Coal from third parties Mt 1.4 3.6 1.2 1.3 0.4 age costs and reduce AI’s dependence on fuel, we decided in 2010 to commence the mechanization of the mine with the installation of an OPCC sys- tem that will crush, transport and spread over- burden to outlying dumping areas not practically accessible for overburden trucks. Through an international tender process, we selected an international engineering company to design and construct the system, which consists of two 7,000 tonnes per hour tph crushing sta- tions and a 12,000tph, 7.7km transport convey- ing system, including a 2.4km movable convey- or and mobile stacking and spreading conveyor. Our subsidiary PT Makmur Sejahtera Wisesa MSW will power the OPCC from its 2x30MW coal-ired mine-mouth power station. The use of coal-ired power will reduce diesel fuel con- sumption and contribute to cost savings and ef- iciency. As of December 31, 2014, we have com- pleted the physical construction of OPCC and are in the testing phase. PT Adaro Mining Technology We established Adaro Mining Technology AMT in 2011 to focus on the research and develop- ment of coal upgrading techniques, coal gasii- cation and coal liquefaction. Our goal is to opti- mize the use of coal reserves through develop- ments in technology. Coaltrade Services International Pte ltd Coaltrade Services International Pte Ltd CTI is the coal sales agency handling Adaro’s exports to certain destination countries. CTI also trades coal from third parties and sells these to the ex- port market. Its oices are based in Singapore. In 2014, CTI’s total sales declined by 5 to 4.5Mt. AI accounted for 90 of CTI’s volume at 4.1Mt, and third-party customers account- ed for 10 of volume at 0.4Mt, a 65 decrease compared to 2013. Coal Trading For profiles of all of our key operating subsidiaries, including mission, management, results and operational summary, please see www.adaro.comoperationour-operating-subsidiaries 64 OuR busiNEss REviEw Of miNiNG sERvicEs In 2014, Adaro increased knowledge of its coal assets through continued coal exploration accomplished through the completion of drill holes. For AI, 2014 was a year of “inill drilling” – a time to focus on converting Inferred Resources to Indicated Resources and Indicated Resources to Measured Resources by reducing the distance between drill holes. This inill drilling process moves coal resource tonnage between catego- ries and increases the assurance of the existence of the coal. In 2014, AI drilled 48,520 meters over 366 drill holes in its coal exploration program. About 65 of these drill holes were cored, which means the key coal seams were core sampled and later analyzed. Exploration activities focused on the North and South Tutupan pits. A total of 1,967 individual coal samples from the exploration drilling were analyzed to en- hance AI’s coal quality database, and 596 coal seam composites were created and tested. AT PT Mustika Indah, a small number of geo- technical drill holes and cone penetrometer holes were completed in aid of mining studies. For Adaro’s other properties, including PT Mustika Indah, PT Semesta Centramas, PT Paramitha Cipta Sarana, PT Laskar Semesta Alam, PT Bumi Kaliman Sejahtera, PT Bumi Murau Coal, PT Birawa Pandu Selaras, PT Khazana Bumi Kaliman, PT Persada Multi Baraw, PT Telen Eco Coal, PT Tri Panuntun Persada and PT Bukit Enim Energi, there was no speciic coal exploration drilling. Adaro Eksplorasi Indonesia AEI is engaged in geological and exploration work for AI and other subsidiaries. In June 2014, the Australian Guidelines for the Estimation and Classiication of Coal Resources 2014 2014 Coal Guidelines were ratiied. The coal guidelines inluence how coal resources are determined for use as a basis for the further esti- mation of coal reserves. The 2014 Coal Guidelines are not part of the JORC code, and ultimately it is the Competent Person CP who decides the applicability of the Coal Guidelines to parts of each deposit. At AI, there is a long history of reconciliation of the tonnage of coal estimated each year against the actual production. Good agreement between the tonnages estimated and those mined has con- sistently proved that at Adaro the coal resource estimation procedures inluenced by the 2003 Coal guidelines are sound. Currently, Adaro derives its coal resources with reference to the 2003 Coal Guidelines. The coal resources are inputs to estimation of the proven and probable coal reserves subject to the modifying factors. From 2015, Adaro will gradu- ally adopt the format of the 2015 Coal Guidelines in the preparation of coal resources; any impact in terms of changes in tonnage is expected to be small. For AI, 2014 was a year of “inill drilling” – this process moves coal resource tonnage between categories and increases the assurance of the existence of the coal. AdARo ENERgy 2014 ANNuAl REPoRT sTRENGThENiNG ThE cORE fOR busiNEss susTAiNAbiliTY www.AdARo.CoM 65 Adaro Equity Adjusted Consolidated Coal Reserves Reported According to JORC 2012 Edition Group and Operating Company Reserves estimated as at Dec. 31, 2014 Reserves estimated as at Dec. 31, 2013 Estimated changes 2014 vs 2013 Total proved probable Mt Proved Mt Probable Mt Total proved probable Mt Proved Mt Probable Mt Change to proved probable total Mt change on proved probable total ADARO TOTAL COAL RESERVES PT Adaro Indonesia, PT Semesta Centra Mas, PT Parmitha Cipta Sarana, 4 PT Mustika Indah Permai 5 1,106 891 215 1,091 853 239 15 1 Adaro Equity Adjusted Consolidated Coal Resources Reported according to JORC 2012 Edition Group and Operating Company Resources estimated as at Dec. 31, 2014 Resources estimated as at Dec. 31, 2013 Estimated changes 2014 vs. 2013 Total measured, indicated inferred Mt Measured Mt Indicated Mt Inferred Mt Total measured, indicated inferred Mt Measured Mt Indicated Mt Inferred Mt Measured, indicated inferred change Mt Measured, indicated inferred change ADARO TOTAL SUB BITUMINOUS 1 PT Adaro Indonesia, PT Semesta Centramas, PT Paramitha Cipta Sarana, PT laskar Semesta Alam, PT Mustika Indah Permai 5,394 1,939 1,843 1,612 5,277 1,901 1,840 1,537 117 2 ADARO TOTAL METALLURGICAL 2 IndoMet Coal 318 21 46 251 318 21 54 243 - - ADARO TOTAL LOW RANK 3 PT Bhakti Energi Persada 7,161 3,480 2,885 797 7,161 3,480 2,885 797 - - 1 Adaros coal resources refer to resources generally suited to host open-pit mineable coal reserves unless noted otherwise. They refer to JoRC 2012 Edition. Adaro’s coal resources and reserves as at december 31, 2014 use the JoRC Coal guidelines 2003 based on a history of successful post mining reconciliation. Evaluation of the 2014 JoRC Coal guidelines will occur in 2015. 2 Based on BHP Billitons 2014 Annual Reports with permission. Some of IndoMets coal resources are designated as resources which may host underground mining. 3 Based on Adaro exercising its option to increase its 10 equity share to 90. 4 The Competent Person for PT Adaro Indonesia PT Semesta Centra Mas PT Paramitha Cipta Sarana coal reserves was Shahzad Chaudari MAusIMM CP, an employee of PT Alam Tri Abadi 5 The Mustika Indah Permai coal reserves have not been re-estimated as at december 31, 2014, due to ongoing revisions to the regulated estimated price of mine-mouth power-plant coal. A re-estimate will be preformed in 2015. Notes Coal Resources and Reserves Summary 66 OuR busiNEss REviEw Of miNiNG sERvicEs Coal Resources by Quantity Adaro Coal Resources 1 Operating Company Locality Coal resources as estimated at Dec. 31, 2014 Total measured, indicated inferred Mt Measured Mt Indicated Mt Inferred Mt Adaro ownership equity Adaro attributable total measured, indicated inferred Mt PT Adaro Indonesia Tutupan 2,693 807 886 1,000 100 2,693 North Paringin 367 108 127 132 367 South Paringin 117 16 64 37 117 wara I 1,406 600 453 354 1,406 wara II 374 72 237 65 374 Total Adaro Indonesia 4,957 1,603 1,766 1,588 100 4,957 Balangan Coal 2 PT Semesta Centramas SCM 101 75 22 5 75 76 PT Paramitha Cipta Sarana PCS 51 36 14 1 75 38 PT laskar Semesta Alam lSA 144 59 58 27 75 108 Total South Kalimantan 5,253 1,773 1,860 1,620 99 5,179 PT Bhakti Energi Persada 3 PT Bumi Kaliman Sejahtera 1,402 526 683 193 90 1,261 PT Bumi Murau Coal 1,817 858 808 151 1,635 PT Birawa Pandu Selaras 186 75 62 48 167 PT Khazana Bumi Kaliman 745 374 238 133 671 PT Persada Multi Bara 2,696 1,307 1,186 202 2,426 PT Telen Eco Coal 1,093 712 223 157 984 PT Tri Panuntun Persada 19 14 4 1 17 Total East Kalimantan 7,957 3,866 3,204 885 90 7,161 IndoMet Coal 4 Haju metallurgicalthermal 14 11 2 1 25 4 lampunut metallurgical 110 72 31 7 27 lampunut thermal 10 - - 10 3 luon metallurgicalthermal 80 - - 80 20 luon metallurgical underground 5 60 - - 60 15 Bumbun metallurgicalthermal 187 - 82 105 47 Juloi Northwest metallurgicalthermal 810 - 70 740 203 Total Central Kalimantan 1,271 83 185 1003 25 318 PT Mustika Indah Permai 6 lahat 287.5 277.7 9.6

0.2 75

215.6 PT Bukit Enim Energi Muara Enim No resources estimated in 2014 Total South Sumatra 287.5 277.7 9.6

0.2 75

215.6 TOTAl ADARO cOAl REsOuRcEs 14,768 5,999 5,258 3,508 87 12,874 AdARo ENERgy 2014 ANNuAl REPoRT sTRENGThENiNG ThE cORE fOR busiNEss susTAiNAbiliTY www.AdARo.CoM 67 Reported according to JORC 2012 Edition 1 Coal resources as estimated at Dec. 31, 2013 Calculated changes to Adaros coal resources 2014 vs. 2013 Total measured, indicated inferred Mt Measured Mt Indicated Mt Inferred Mt Adaro ownership equity Adaro attributable total measured, indicated inferred Mt Changes to operating company total measured, indicated inferred Mt Changes to operating company total measured, indicated inferred Changes to Adaro attributable total measured, indicated inferred Mt Changes to Adaro attributable total measured, indicated inferred 2,708 893 928 887 100 2,708 -15 -1 -15 -1 372 104 138 130 372 -5 -1 -5 -1 117 16 64 37 117 - - - - 1,362 573 437 352 1,362 44 3 44 3 374 72 237 65 374 - - - - 4,932 1,657 1,804 1,471 100 4,932 24 0.5 24 62 31 25 6 75 46 40 64 30 64 21 - - 21 75 16 30 142 22 138 90 16 14 60 75 67 55 61 41 61 5,105 1,704 1,842 1,558 99 5,062 148 3 117 2 1,402 526 683 193 90 1,261 - - - - 1,817 858 808 151 1,635 - - - - 186 75 62 48 167 - - - - 745 374 238 133 671 - - - - 2,696 1,307 1,186 202 2,426 - - - - 1,093 712 223 157 984 - - - - 19 14 4 1 17 - - - - 7,957 3,866 3,204 885 90 7,161 - - - - 14 11 2 1 25 4 - - - - 110 72 31 7 27 - - - - 10 - - 10 3 - - - - 80 - - 80 20 - - - - 60 - - 60 15 - - - - 187 - 112 75 47 - - - - 810 - 70 740 203 - - - - 1,271 83 215 973 25 318 - - - - 287.5 277.7

9.6 0.2

75 215.6 - - - - No resources estimated in 2013 No resources estimated in 201314 287.5 277.7

9.6 0.2

75 215.6 - - - - 14,620 5,931 5,271 3,416 87 12,756 148 1.0 117 0.9 1 Adaro’s coal resources refer to resources generally suited to host open-pit mineable coal reserves unless noted otherwise.Adaro’s coal resources are reported according to JoRC 2012 Edition, with reference to the JoRC Coal guidelines 2003. The CP was Joseph Crisostomo MAusIMM, of PT Adaro Eksplorasi Indonesia, and the resources were estimated in March 2015 as at dec. 31, 2014. Small differences are due to decimal place rounding. 2 Balangan Coal is an informal collective name for the separate IuPs PT Semesta Centramas, PT Paramitha Cipta Sarana and PT laskar Semesta Alam. Their resources were estimated in March 2015 in accordance with JoRC 2012 Edition subject to the use of the JoRC Coal guidelines 2003. The CP was Setiawan of PT Adaro Eksplorasi Indonesia. Signiicant increases in resources in all Balangan concessions related to reduced transportation costs allowing for a revision of the resource economic shell to greater depths. 3 The CP was Peter Mucalo MAusIMM, of PT Adaro Eksplorasi Indonesia, and the coal resources were estimated in April 2013 according to JoRC 2012 Edition. 4 Based on BHP Billiton’s 2013 and 2014 Annual Report with the permission of BHP Billiton. 5 luon metallurgical indicated resources are designated as having potential to host underground mining. 6 The resources were estimated in November 2013. The CP was John devon of Marston Inc., a golder company. Notes 68 OuR busiNEss REviEw Of miNiNG sERvicEs Adaro Coal Reserves Operating Company Locality Coal reserves as estimated at Dec. 31, 2014 Total proved probable Mt Proved Mt Probable Mt Adaro ownership equity Adaro attributable total proved probable Mt PT Adaro Indonesia 1 Tutupan 2 501 373 128 100 501 North Paringin 3 51 35 16 51 South Paringin No reserves estimated in 2014 - wara I 4 310 260 50 310 wara II No reserves estimated in 2014 - Total Adaro Indonesia 862 668 194 100 862 Balangan Coal 5 PT Semesta Centramas SCM 43 31 12 75 32 PT Paramitha Cipta Sarana PCS 28 20 8 75 21 PT laskar Semesta Alam lSA No reserves estimated in 2014 75 - Total South Kalimantan 933 719 213 98 915 PT Bhakti Energi Persada at Muara wahau No reserves estimated in 2014 90 - Total East Kalimantan - - - - - IndoMet Coal Central Kalimantan No reserves estimated in 2014 25 - Total Central Kalimantan - - - - - PT Mustika Indah Permai 6 lahat 254 246 8 75 191 PT Bukit Enim Energi Muara Enim No reserves estimated in 2014 61 - Total South Sumatra 254 246 8 75 191 TOTAl ADARO PROvED AND PRObAblE cOAl REsERvEs 1,187 965 221 93 1,106 Coal Reserves by Quantity AdARo ENERgy 2014 ANNuAl REPoRT sTRENGThENiNG ThE cORE fOR busiNEss susTAiNAbiliTY www.AdARo.CoM 69 Reported According to JORC 2012 Edition Coal reserves as estimated at Dec. 31, 2013 Calculated changes to Adaros coal reserves 2014 vs 2013 Total proved probable Mt Proved Mt Probable Mt Adaro ownership equity Adaro attributable total proved probable Mt Changes to operating company total proved probable Mt Changes to operating company total proved probable Changes to Adaro attributable total proved probable Mt Changes to Adaro attributable total proved probable 536 368 169 100 536 -35 -7 -35 -7 33 28 5 33 18 55 18 55 No reserves estimated in 2013 - No reserves estimated in 20132014 331 272 59 331 -21 -6 -21 -6 No reserves estimated in 2013 - No reserves estimated in 20132014 900 668 233 100 900 -38 -4 -38 -4 No reserves estimated in 2013 75 - 43 NA 32 NA 75 - 28 NA 21 NA 75 - No reserves estimated in 201314 900 668 233 100 900 33 4 15 2 No reserves estimated in 2013 90 - No reserves estimated in 20132014 - - - - - - - - - No reserves estimated in 2013 25 - No reserves estimated in 20132014 - - - - - - - - - 254 246 8 75 191 - - - - No reserves estimated in 2013 61 - No reserves estimated in 20132014 254 246 8 75 191 - - - - 1,154 914 241 94 1,091 33 3 15 1 1 The Competent Person CP for PT Adaro Indonesia Coal Reserves was Shahzad Chaudari MAusIMM, who is an employee of PT Alam Tri Abadi. 2 Combined Tutupan reserves decreased by 35Mt due to Tutupan 2014 production and mining recovery adjustments 3 North Paringin reserves are based on a new pit shell due to additional mine planning work. 4 wara 1 reserves decreased by 21 Mt due to wara 2014 production and mining recovery adjustments 5 Balangan Coal is an informal collective name for the separate IuPs PT Semesta Centramas, PT Paramitha Cipta Sarana and PT laskar Semesta Alam. The CP for PT Semesta Centramas and PT Paramitha Cipta Sarana was Shahzad Chaudari MAusIMM, who is an employee of PT Adaro Indonesia. Signiicant increases in reserves in PT Semesta Centramas and PT Paramitha Cipta Sarana are related to reduced transportation costs allowing for a revision of the reserves pit shell to greater depths. 6 The CP for the PT Mustika Indah Permai coal reserves was leonard dolby of Marston Inc., a golder company. The reserves were last estimated in March 2014, and have not been reestimated as at dec. 31, 2014 due to ongoing revisions to the regulated estimated price of mine-mouth power-plant coal. A reestimate will be performed in 2015. Notes 70 OuR busiNEss REviEw Of miNiNG sERvicEs Quality of Adaro Coal Resources gross as Received Basis Operating company Locality Estimated as at Dec. 31, 2014 Total moisture Ash Volatile matter Total sulphur Caloriic value Kcalkg PT Adaro Indonesia 1 Tutupan 27.9 2.4 35.9 0.12 4,846 North Paringin 28.7 3.0 33.9 0.23 4,807 South Paringin 30.8 2.9 32.7 0.21 4,651 wara I 38.5 3.6 30.4 0.31 3,971 wara II 43.6 3.1 28.9 0.23 3,657 Total Adaro Indonesia thermal 32.2

2.8 33.6