Difference in value from transactions for subscription of additional shares in subsidiary

Schedule 561 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

22. REVENUE

31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Coal —Third parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 749,399 885,228 3,308,867 488,202 1,373,296 —Related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 2,389,783 81,992 749,399 885,228 3,308,867 2,877,985 1,455,288 Non-Coal —Third parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,356 12,846 71,433 68,890 195,106 —Related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,358 14,445 70,763 48,937 20,831 22,714 27,291 142,196 117,827 215,937 772,113 912,519 3,451,063 2,995,812 1,671,225 Details of customers having transactions more than 10 of net revenue: Coal Export—third parties —Enel Trade S.p.A. . . . . . . . . . . . . . . . . . . . . . . . . . . 194,637 264,820 1,002,663 — — —Vitol Asia Pte. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . 134,293 — — — — —Coal and Oil Company LLC . . . . . . . . . . . . . . . . . 106,111 48,155 — — — —Constellation Energy Comodities Group, Inc. . . . . 48,666 113,665 — — — —Mitsui Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . 92,650 173,363 614,532 — — —TNB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,474 124,428 403,389 286,351 — —Others each below 10 of net revenue . . . . . . . . 81,904 161,797 1,238,517 201,851 — 694,735 885,228 3,259,101 488,202 — Export—related party —BI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 2,389,783 81,992 — — — 2,389,783 81,992 Local—third parties —PT Mineral Exportindo . . . . . . . . . . . . . . . . . . . . . — — — — 1,372,665 —Others each below 10 of net revenue . . . . . . . . 54,664 — 49,766 — 631 54,664 — 49,766 — 1,373,296 Non-Coal each below 10 of net revenue —third parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,356 12,846 71,433 68,890 195,106 —related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,358 14,445 70,763 48,937 20,831 22,714 27,291 142,196 117,827 215,937 772,113 912,519 3,451,063 2,995,812 1,671,225 Refer to Note 27 for details of related party transactions. F-78 Schedule 562 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

23. COST OF REVENUE

31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Production cost: Overburden removal . . . . . . . . . . . . . . . . . . . . . . . . . 265,056 137,890 686,912 666,488 667,944 Fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138,531 80,550 352,569 386,919 168,427 Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,708 54,996 241,731 194,138 198,580 Salaries, wages and allowances . . . . . . . . . . . . . . . . 27,644 16,965 83,237 54,017 39,286 Materials and spare parts . . . . . . . . . . . . . . . . . . . . . 18,947 11,585 35,657 50,037 42,965 Explosives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,309 5,079 20,891 2,418 2,224 Land compensation . . . . . . . . . . . . . . . . . . . . . . . . . . 5,266 2,244 16,697 8,305 6,130 Amortisation of deferred exploration and development expenditures . . . . . . . . . . . . . . . . . . 5,185 — 5,089 — — Professional fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,927 1,046 10,633 8,844 1,610 Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . 4,773 5,296 50,130 58,979 56,192 Coal mining and hauling . . . . . . . . . . . . . . . . . . . . . 4,450 3,866 24,206 15,252 19,683 Rental and mobilisation . . . . . . . . . . . . . . . . . . . . . . 4,438 12,761 40,866 14,051 8,874 Site office expenses . . . . . . . . . . . . . . . . . . . . . . . . . 3,309 1,116 11,933 7,055 7,525 Food supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,174 2,474 7,558 5,257 5,511 Transportation and travelling . . . . . . . . . . . . . . . . . . 1,371 471 5,066 4,418 2,262 Demurrage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 — 149 1,713 7,810 Others each below Rp 5,000 . . . . . . . . . . . . . . . . . 8,522 3,542 26,615 17,883 13,405 566,717 339,881 1,619,939 1,495,774 1,248,428 Royalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,070 51,934 228,193 204,413 180,867 Work-in-process inventory —At beginning of periodyear . . . . . . . . . . . . . . . . . 9,692 105,198 105,198 103,303 3,611 —At end of periodyear . . . . . . . . . . . . . . . . . . . . . . 47,983 54,445 9,692 105,198 103,303 Finished goods inventory —At beginning of periodyear . . . . . . . . . . . . . . . . . 74,217 119,024 119,024 48,317 1,790 —Coal purchases—net . . . . . . . . . . . . . . . . . . . . . . . 134,520 157,262 496,028 692,034 80,716 —At end of periodyear . . . . . . . . . . . . . . . . . . . . . . 180,996 54,824 74,217 119,024 48,317 Cost of revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 621,237 664,030 2,484,473 2,319,619 1,363,792 Details of supplierscontractors with transactions representing more than 10 of total cost of revenue: 31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated PT Petrosea Tbk . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240,113 131,511 584,222 505,304 452,521 PT Indika Inti Corpindo . . . . . . . . . . . . . . . . . . . . . . 81,421 74,557 196,123 179,606 — PT Lian Beng Energy . . . . . . . . . . . . . . . . . . . . . . . . 219 45,332 262,750 329,735 315,408 PT Kalimantan Citra Bara . . . . . . . . . . . . . . . . . . . . — — — 342,883 — 321,753 251,400 1,043,095 1,357,528 767,929 Refer to Note 27 for details of related party transactions. F-79 Schedule 563 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

24. SELLING EXPENSES

31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Barging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96,573 67,945 308,393 271,048 — Agency fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,994 41,438 151,583 2,369 — Export levy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 78,350 2,712 Quality claim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 37,575 — Others each below Rp 5,000 . . . . . . . . . . . . . . . . . . . . 1,531 1,096 2,997 — — 118,098 110,479 462,973 389,342 2,712 Refer to Note 27 for details of related party transactions.

25. GENERAL AND ADMINISTRATION EXPENSES

31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Salaries, wages and allowances . . . . . . . . . . . . . . . . . . . 12,941 7,386 37,037 21,580 16,886 Office expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,868 3,791 21,207 16,789 9,582 Professional fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,869 523 8,141 5,414 8,517 Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,733 1,535 4,028 3,174 5,412 Telephone and communication . . . . . . . . . . . . . . . . . . . 1,285 1,186 2,886 3,200 2,263 Travelling expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900 594 4,640 3,091 4,250 Retribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 838 250 1,999 3,129 2,753 Office rental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 619 970 2,991 2,657 2,548 Donations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 32 1,392 128 1,602 Licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 91 1,193 503 404 Arrangement fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 1,400 — — Bad debt expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — 5,898 Others each below Rp 1,000 . . . . . . . . . . . . . . . . . . . . 2,223 1,522 6,194 5,181 3,010 28,334 17,880 93,108 64,846 63,125 26. BASIC EARNINGS PER SHARE Basic net earnings per share is calculated by dividing net income attributable to shareholders by the weighted-average number of ordinary shares outstanding during the respective periodyear. 31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Net income attributable to shareholders . . . . . . . . . . . . 16,487 100,115 252,740 120,999 81,640 Weighted average number of ordinary shares outstanding in thousand . . . . . . . . . . . . . . . . . . . . . 3,000,000 100,000 298,630 100,000 92,880 Basic earnings per share full amount . . . . . . . . . . . . . 5 1,001 1 846 1 1,210 1 879 1 1 Restated to reflect the split in the Company’s shares on a 10,000 to 1 basis effective 18 March 2008 refer to Note 19. The Group does not have any dilutive ordinary shares as at 31 March 2008 and 2007 and 31 December 2007, 2006 and 2005. F-80 Schedule 564 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

27. RELATED PARTY TRANSACTIONS

Related party transactions are as follows: 31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Sales of coal: —BI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 2,389,783 81,992 Coal processing: —PAI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,498 13,660 53,439 46,302 19,706 Sales commission: —PAI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 548 785 3,099 2,635 1,125 Rental revenue: —PT Kaltim Supacoal . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,312 — 14,225 — — 11,358 14,445 70,763 2,438,720 102,823 As a percentage of total revenue . . . . . . . . . . . . . . . . . . . . 1.47 1.58 2.05 81.40 6.15 Purchase of fixed assets: —Carbonic International Trading Ltd. . . . . . . . . . . . . . . . — — — 5,154 16,665 — — — 5,154 16,665 As a percentage of total fixed assets purchased . . . . . . . . — — — 0.87 3.60 Overburden removal: —PT Lian Beng Energy . . . . . . . . . . . . . . . . . . . . . . . . . . — 31,730 194,980 232,119 281,330 — 31,730 194,980 232,119 281,330 As a percentage of total overburden removal costs . . . . . — 20.74 24.26 32.81 35.44 Fuel: —PT Lian Beng Energy . . . . . . . . . . . . . . . . . . . . . . . . . . 219 13,602 67,770 97,616 34,078 219 13,602 67,770 97,616 34,078 As a percentage of total fuel purchases . . . . . . . . . . . . . . 0.16 15.62 16.59 23.97 17.70 Purchase of coal: —PAI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,462 16,357 64,060 63,698 15,379 —PT Kalimantan Citra Bara . . . . . . . . . . . . . . . . . . . . . . — — — 342,883 — 11,462 16,357 64,060 406,581 15,379 As a percentage of total purchases of coal . . . . . . . . . . . . 8.52 10.40 12.91 58.75 19.05 Agency fees: —BI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,749 39,751 146,109 — — 19,749 39,751 146,109 — — As a percentage of total agency fees . . . . . . . . . . . . . . . . . 98.77 95.93 96.39 — — Barging expense: —PT Aneka Samudera Lintas . . . . . . . . . . . . . . . . . . . . . — 41,517 41,517 75,541 — — 41,517 41,517 75,541 — As a percentage of total barging expense . . . . . . . . . . . . . — 61.10 13.46 27.86 — F-81 Schedule 565 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

27. RELATED PARTY TRANSACTIONS continued

31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Rental expense and mobilisation: —ASL Energy Pte. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . — 10,134 30,517 6,774 — —PT Lian Beng Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . 222 — — — — —PT Nirmala Matranusa . . . . . . . . . . . . . . . . . . . . . . . . . . 1,019 — — — — 1,241 10,134 30,517 6,774 — As a percentage of total rental expense and mobilisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.96 79.41 74.68 48.21 — Interest expense: —BI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,390 33,226 129,244 126,129 81,438 16,390 33,226 129,244 126,129 81,438 As a percentage of total interest expense including interest expense capitalised to fixed assets and deferred exploration and development expenditures . . . . . . . . . . 55.83 81.15 80.76 85.81 94.17 Purchase of spareparts: —Sumcommerce Japan Inc. . . . . . . . . . . . . . . . . . . . . . . . . 11,694 6,307 23,649 23,145 12,527 11,694 6,307 23,649 23,145 12,527 As a percentage of total purchases of spareparts and other materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46.05 42.34 56.75 38.15 23.65 Receivables from consession holders: —PT Bunga Permata Sari . . . . . . . . . . . . . . . . . . . . . . . . . . 119 119 119 119 — 119 119 119 119 — As a percentage of total receivables from consession holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00 3.80 45.08 1.42 — Advance from customers: —BI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — 1,565 — — — — 1,565 As a percentage of total advances from customers . . . . . . . — — — — 3.89 Advances and prepayments: —PT Muji Lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 456 — — — — 456 — — — As a percentage of total advances and prepayments . . . . . — 1.24 — — — Other payables: —The Company’s shareholders . . . . . . . . . . . . . . . . . . . . . 8,888 1,400 11,263 1,400 15,440 —PAI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,262 — 1,147 — — —The Company’s directors . . . . . . . . . . . . . . . . . . . . . . . . 667 377 658 377 297 —PT Nirmala Matranusa . . . . . . . . . . . . . . . . . . . . . . . . . . — 777 — 16,782 2,515 —BI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,530 54,708 — — 491 15,347 57,262 13,068 18,559 18,743 Current portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,178 55,721 11,668 17,018 17,046 Long-term portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 1,541 1,400 1,541 1,697 As a percentage of total other payables . . . . . . . . . . . . . . . 19.38 49.06 18.26 20.97 24.22 F-82 Schedule 566 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

27. RELATED PARTY TRANSACTIONS continued

The Group’s policy is that transactions with related parties are carried out on normal commercial terms. The nature of relationship with the related parties is as follows: Parties Relationships Transactions —BI Under common control with the Company Loan, interest expense, sales of coal, agency fees, advances —PT Sumber Harmoni Sekawan Under common control with the Company Advances, share acquisitions —PT Selecta Harum Sari Under common control with the Company Advances, share acquisitions —PT Kaltim Asetindo Under common control with the Company Advances —PAI Under common control with the Company Coal processing, sales of coal, profit sharing from proceeds on the sale of coal, purchase of coal —PT Nirmala Matranusa Under common control with the Company Construction of fixed assets —PT Kaltim Supacoal Associate company Rental revenue —Carbonic International Trading Ltd. Under common control with the Company Purchase of fixed assets —PT Kaltim Bara Sentosa Under common control with the Company Share acquisitions —PT Kaltim Investama Under common control with the Company Share acquisitions —PT Bara Citra Indah Under common control with the Company Share acquisitions —PT Lian Beng Energy Under common control with the Company Overburden removal, fuel reimbursement, equipment rental —PT Kalimantan Citra Bara Under common control with the Company Purchase of coal —ASL Energy Pte. Ltd. Under common control with the Company Floating terminal pontoon rental —PT Bunga Permata Sari Under common control with the Company Mining services —Sumcommerce Japan Inc. Under common control with the Company Purchase of spareparts —PT Aneka Samudera Lintas Under common control with the Company Barging services —PT Muji Lines Under common control with the Company Advances —GBP’s Directors Directors of subsidiary Other receivables —The Company’s shareholders and directors Shareholders and directors of the Company Other payables F-83 Schedule 567 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

28. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES a. Mining services contracts

IP On 1 February 2005, IP entered into a contract mining service agreement with PAI, a related party. PAI, which holds the rights to carry out all mining work in the concession area of FSP in Kutai Kartanegara, engaged IP to provide mining services, including among others, mining, hauling, crushing and loading of coal. The duration of the agreement is for fifty-two 52 calendar months until June 2009 and is extendable for a further three years. Refer to Note 33r for the termination agreement after 31 March 2008. IP entered into an agreement for the provision of open cut mining services with PT Madhani Talatah Nusantara whereby the latter was commissioned for the removal of approximately 120.8 million bank cubic meters “bcm” of overburden material and 53.7 million Metric Tonnes “MT” of ROM run of mine coal. GBP On 2 March 2004, GBP entered into an agreement with PT Bangun Karya Pratama Lestari for overburden removal services at Block—II area. The agreement will expire on 2 March 2009 or after the contractor has removed overburden of 61.1 million bcm, whichever is earlier. The agreement governs price rate and adjustment, fuel rate and adjustment and average overburden haulage distance. In December 2004, GBP entered into an agreement with PT Petrosea Tbk for overburden removal services at Block—II area. Based on the latest amendment, the agreement will expire on 31 December 2008 or after the contractor has removed overburden of 141 million bcm, whichever is earlier. The agreement governs price rate and adjustment, fuel price and adjustment, explosive rate and usage management, shortfall production penalty, interest charge for the late service payment and average overburden haulage distance. On 9 October 2007, GBP entered into an agreement with PT Bukit Makmur Mandiri Utama “BUMA” for overburden removal services at Block—II area. The agreement will expire on 1 December 2011 or after the contractor has removed overburden of 140 million bcm, whichever is earlier. The agreement governs price rate and adjustment, fuel price and adjustment, shortfall production penalty, explosive usage management and average overburden haulage distance. On 29 February 2008, GBP entered into an agreement with PT Hareda Krida Utama for overburden removal services at East Block. The agreement will expire after the contractor has removed overburden of 11 million bcm. The agreements govern price rate and adjustment and average overburden haulage distance. PIK On 30 January 2007, PIK entered into an agreement for the overburden removal services and coal mining with BUMA whereby the latter was commissioned for the removal of approximately fifty-four 54 million bcm of overburden material and twelve 12 million MT of ROM run of mine coal. Based on a proposal submitted to BUMA dated 16 November 2007, PIK would like to increase 15 of coal production as well as increasing the strip ratio to 6.50:1 with total overburden volume of 85.3 million bcm. This agreement commenced on 1 May 2007 and is valid for a period of five years or until the agreed volume is completed, whichever is earlier. WBM On 3 August 2007, WBM entered into an overburden and coal mining agreement with PT Leighton Contractors Indonesia. The contract commenced in November 2007 for performing overburden work of 276.5 million bcm of material and 26.5 million tonnes of coal. On 12 November 2007, WBM amended the F-84 Schedule 568 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated 28. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued a. Mining services contracts IP continued overburden and coal mined to 324.6 million bcm and 34.5 million tonnes, respectively. The agreement is valid until November 2014 or until the production target is reached, whichever is earlier. In relation to this agreement, WBM provided a bank guarantee amounting to US7.8 million issued by PT ANZ Panin Bank. This guarantee is valid for one year up to 31 August 2008. This bank guarantee may be claimed by PT Leighton Contractors Indonesia if WBM does not fulfill its payment obligations. FSP On 1 February 2005, FSP entered into a coal mining agreement with PAI. The matters covered under the agreement are as follows: ‰ FSP grants PAI the right to perform coal mining activities, for and on behalf of FSP, of all coal deposits in the contract area in accordance with the terms and conditions of the Mining Rights. ‰ PAI will bear all costs and risk in carrying out all the coal mining activities, except for regional development retributions, dead rent, and land and building tax. ‰ FSP will receive a profit share of: i US1tonne if realised annual production is less than 1.2 million tonnes; ii US0.9tonne if realised annual production is between 1.2 and 2.4 million tonnes; iii US0.8tonne if realised annual production is more than 2.4 million tonnes. ‰ PAI is the sole agent for the sale of coal produced in the contract area. This agreement is effectively terminated on 1 May 2008, based on termination agreement that has been signed on 30 April 2008.

b. Cooperation agreement

DPP On 16 February 2001, DPP entered into a cooperation agreement with PT Persero Pelabuhan Indonesia IV that provided for, among others, the sharing of revenue from port charges levied on ships anchored at the BCT by PT Persero Pelabuhan Indonesia IV. This agreement originally covered the period from 17 February 2001 to 16 February 2005 and has been extended until 16 February 2010.

c. Coal handling services contracts

DPP On 1 June 2004, DPP entered into an agreement with PT Indominco Mandiri, PT Kitadin, PT Trubaindo Coal Mining, PT Jorong Barutama Greston and PT Bharinto Ekatama to perform coal handling services at the BCT. Based on the latest amendment, DPP agreed to handle coal of 3 million MT per annum and the agreement will expire on 31 December 2008. The agreement governs price rate, dispatch or demurrage, port operations and laytime. F-85 Schedule 569 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated 28. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued c. Coal handling services contracts continued PIK On 1 August 2007, PIK entered into a stevedoring agreement with PT Indah Buana Samudera which is valid until 31 December 2008.

d. Reclamation guarantees

GBP As at 31 March 2008, GBP has provided reclamation guarantees to the government in the form of bank guarantees amounting to Rp 11,990 or equivalent to US1,302,500 refer to Note 28m for 2007 and 2008. These guarantees are in accordance with the Decree from the Directorate General of Minerals, Coal and Geothermal regarding reclamation guarantee for the period 2007—2011 amounting to Rp 29,896. These bank guarantees may be claimed by the Government if GBP does not carry out its reclamation plans as agreed with the Government for those periods. FSP Based on a Decree from the Directorate General of Minerals, Coal and Geothermal, dated 26 April 2006, the reclamation guarantee for the period 2005 to 2009 is Rp 3,596. On 6 February 2008, FSP has provided a reclamation guarantee for 2005 and 2006 to the Regency of Kutai Kartanegara in the form of a bank guarantee at PT Bank Danamon Indonesia Tbk amounting to Rp 2,864 or equivalent to US311,148 refer to Note 28m. This guarantee is valid for one year up to 31 December 2008. This bank guarantee may be claimed by the Regency of Kutai Kartanegara if FSP does not carry out its reclamation plans as agreed for those periods.

e. Rental commitments

DPP On 12 November 2004, DPP entered into a floating terminal pontoon rental agreement with ASL Energy Pte. Ltd., a related party, for a period of ten years, with a rental fee amounting to US5,000,000 per annum. The agreement is valid for a period of ten years. Group On 7 January 2008, the Company, DPP, FKP, TSA, WBM, BE, IP, GBP, MP, PIK and KOTR entered into an office rental and reimbursement for office maintenance expense agreement with PT Nirmala Matranusa for a period of 10 years, for a total office rental amount of US193,006 per year including VAT and office maintenance of US78,957 per year. The agreement is valid from 1 January 2008 up to 31 December 2017 and can be extended for the next two years. IP On 18 January 2007, IP entered into provision of equipment rental and camp facility utilisation agreement with PT Kaltim Supacoal, a related party, for the construction of plant at PT Kaltim Supacoal’s site. The fee for this agreement is ranging from US12 to US169, and both parties have agreed with this however, as F-86