13.6 9.4 5.5 1.4 38.5 34.4 24.3 20.8 Adaro Energy 2009 Annual Report English

8 Adaro Energy Annual Report 2009 From Us to Y ou Running Adaro Management Report Owning Adaro Governing Adaro Financial Report Contact Us Corporate Social Responsibility Adaro in Summary www.adaro.com Good track record of growth, large reserves to support continued expansion Law 41 on Forestry Passed Start of Asian Financial Crisis Adaro begins commercial operations 45 25 35 15 5 40 20 30 10 2000 1999 1998 1997 1996 1995 1994 1993 1992 2

15.5 13.6

10.9 9.4

8.6 5.5

2.4 1.4

1.0 Outstanding track record of production growth in line with market demand over 17 years.” The total in-situ resource of coal in the Adaro concession area is estimated to be nearly 3.5 billion tonnes of surface mineable coal contained in major large coal seams ranging from 15 meters to 50 meters in thickness within the Tutupan and Wara deposits. The resource has been deined by ongoing exploration and resource deinition drilling since 1982 with over 1500 drillholes in the Tutupan area alone and resource data has been conirmed by independent mining consultants to JORC code standards. Adaro carries out annual drilling programs of up to 10,000 meters to continually update and upgrade its resource estimates. million tonnes The table below shows Adaro Energy’s coal reserves and resources as at Dec 31, 2009, based on JORC: Resources in million tonnes Location Resources Inferred 1000500m Mt Indicated 500250m Mt Measured 250m Mt Total Mt Tutupan 825 705 655 2,185 Wara 1 337 268 292 897 Wara 2 110 134 118 362 Total 1,272 1,107 1,065 3,444 Reserves in million tonnes Location Reserves Probable In-Situ Proven In-Situ Total In-Situ Recoverable Tutupan 167 418 585 547 Wara 1 92 212 304 282 Total 259 630 889 829 Law 22 and Law 25 of 1999 on Regional Autonomy Adaro Energy Annual Report 2009 9 www.adaro.com Bali Bomb 2009 2008 2007 2006 2005 2004 2003 2002 2001 2005 - 09 CAGR: 11 Start of US Financial Crisis

40.6 38.5

36.1 34.4

26.7 24.3

22.5 20.8

17.7 LBO of Adaro Period of DecentralizationRegional Autonomy 10 Adaro Energy Annual Report 2009 From Us to Y ou Running Adaro Management Report Owning Adaro Governing Adaro Financial Report Contact Us Corporate Social Responsibility Adaro in Summary www.adaro.com Amongst the world’s largest and lowest cost... 3 Certain Cost Reduction Initiatives Centralized fuel procurement and selective fuel price hedging to help control and minimize fuel costs Mine-mouth power plant to replace 20MW of diesel- fired electricity consumed by the mine, reducing the electricity expense and Adaro’s dependence on oil Installation of GPS and ground radar on trucking fleet to avoid bottlenecks Greater use of the Taboneo anchorage for Adaro’s shiploading activities, which decreases barging distances Adaro Cash Cost excl. Royalty US T 2005 2006 2007 2008 2009 20.2

21.6 23.7