Risk of labor actions and demonstration

decrease stock prices at Indonesia Stock Exchange or other Stock Exchange and also suppress the rupiah exchange rate against other currencies. This condition could negatively impact the financial, operating results and business prospects of the Company. D RISKS ASSOCIATED WITH THE NATURE 1. Risk of accidents, weather changes and natural disasters that could cause negative impact on the operational performance of the Company and its subsidiaries Location of Indonesia which is on three convergence of Earths crustal plates, which are Eurasian continent plate, of India- Australia continent plate and the pacific ocean plate gives rise to a geological structure that has a wealth of mining potential which has been recognized worldwide. But Indonesian archipelago has worlds most active volcanic activity, which makes Indonesia is prone to seismic activity that could cause earthquakes and tsunamis. Those natural events could bring loss to the Company. The Company has implemented adequate safety standards in the implementation of mining operations. However, in the implementation of its business activities, there is still possibility of risks of occupational accidents, including the risk of fire, explosion, trade embargo, labor disputes, social and environmental problems, unanticipated geological conditions, landslides, weather changes including heavy rain and natural disasters such as high waves, earthquakes and other natural phenomena. Accidents, weather changes and natural disasters can negatively impact business activities, financial condition and business prospects of the Company.

2. Risk of

difference and estimation of geological conditions that could affect the coal production Coal mining business activities owned by the Company and its subsidiaries are located in several areas in Jambi, South Sumatra, South Kalimantan and Central Kalimantan. Geological conditions in each mine could affect the Companys operation activities or other activities in coal mining, processing, storing, transporting or shipping and could decrease, disrupt or suspend the coal production of the Company and its subsidiaries which cause large and detrimental impact to the Company. The management of the Company stated that all the business risks faced by the Company in conducting its business activities have been disclosed in the Prospectus and have been prepared based on the weight of the impact of each risk group against business activities and financial condition of the Company. VII. MATERIAL EVENTS SINCE THE DATE OF INDEPENDENT AUDITORS’ REPORT There have been no material events since the date of the independent auditors report on Companys consolidated financial statements for the six-month period ended June 30, 2011 and for the years ended December 31, 2010, 2009 and 2008 which has been audited by Public Accountant Firm Mulyamin Sensi Suryanto with an unqualified opinion, that have not been disclosed in this Prospectus.