General DISTRIBUTION OF PROSPECTUS AND SHARE SUBSCRIPTION ORDER

2178BH 09.05XI2000 dated November 7, 2001 and was published in Official Gazette of the Republic of Indonesia No. 30 dated April 12, 2002, Supplement No. 3667, as well. The Company altered its name which initially named PT Bumi Kencana Sakti Eka into PT Golden Energy Mines Tbk., based on the decision of the shareholders of the Company as set forth in the Deed of Meeting Decision Statement of PT Bumi Kencana Eka Sakti No. 43, dated November 16, 2010, made before Linda Herawati, SH, Notary in Central Jakarta. Articles of Association have been amended several times and last modified in accordance with the Deed of Meeting Decision Statement of PT Bumi Kencana Eka Sakti No. 43, dated November 16, 2010, made before Linda Herawati, SH, Notary in Central Jakarta, the aforementioned Deed of Meeting Decision Statement of PT Bumi Kencana Eka Sakti No. 43 dated November 16, 2010 has obtained approval from the Minister of Justice pursuant to Decision No. AHU-54931.AH.01.02.Year 2010 dated November 23, 2010, has been registered in the Company Register No. AHU-0084940.AH.01.09. Year 2010 dated November 23, 2010 and has been received and noted in the database of Legal Entities Administration System of Ministry of Justice and Human Rights of the Republic of Indonesia No. AHU-AH.01.10- 30717 dated November 30, 2010 and has been registered in the Company Register No. AHU-0086853.AH.01.09.Year 2010 dated November 30, 2010, of which contents among others are the approval of the Companys status alteration from a Closely Held Company to a Publicly listed Company, alteration of all provisions of the Company’s Articles of Association within the framework of adjustment with the regulation of Bapepam-LK No. IX.J.1, and alteration of the Company’s name as mentioned above. The current compositions of Board of Commissioners and Board of Directors are as listed in the Deed No. 13 dated September 12, 2011, made before Linda Herawati, SH, Notary in Central Jakarta, which has been received and recorded in the database of Legal Entity Administration System of Ministry of Justice and Human Rights of Republic of Indonesia based on the Receipt of Notification of Data Changes dated September 19, 2011 No. AHU-AH.01.10-29630, and has been registered in the Company Register in accordance with UUPT No. AHU- 0075315.AHA.01.09.Year 2011 dated September 19, 2011. The Company is engaged in the business of mining products trading and mining services. The Company has investments in 12 twelve subsidiaries which 10 ten of the subsidiaries are engaged in thermal coal mining with caloric value ranges between 5200-6100 kcalkg adb. The subsidiaries’ mining locations are in South Sumatra, Jambi, South Kalimantan and Central Kalimantan. The Company is also engaged in the business of coal trading for coal qualities mixing and to meet the needs of certain buyers. The companys revenue is mainly affected by coal demands and fluctuations in world’s coal prices. Meanwhile, on the cost side, the major cost component of the Company and its subsidiaries is the mining cost. The amount of production has increased from year to year. In 2008, the Company through its subsidiaries produced 1.3 million tons of coal. The amount of production increased to 1.5 million tons in 2009, 1.8 million tons in 2010 and 1.8 million tons in the six-month period ended June 30, 2011. The following is a summary of historical production data in the last 3 three years: Block Product ion in t ons Period of 6 six mont hs year 2011 2010 2009 2008 BIB 1,167,117 1,118,046 1,182,669 1,252,305 KIM 615,367 638,206 353,834 - TKS 53,383 8,569 - - TOTAL 1,835,867 1,764,821 1,536,503 1,252,305 Note: KIM was acquired by the Company in May 2009 Through the mining supervision cooperation, the Company obtained additional coal production as much as 265 thousand tons of coal in 2010 and 543 thousand tons of coal during the six-month period ended on June 30, 2011 from mining area of TBA, a third party. Company has a long-term Sales and Purchase Agreement of coal and Mining Supervision Cooperation Agreement between the Company and ASC, to conduct off-take of coal and mining supervision in the area of TBA. ASC is a third party that has Sales and Purchase Agreement of coal with TBA. By doing mining supervision, the total production performance of the Company is as much as 2.0 million tons in 2010 and 2.4 million tons in the six-month period ended on June 30, 2011. In the Companys financial statements, the coal produced from the mining area of TBA is recognized as coal sales and purchase transactions. From the Sales, currently, the Company sells coal to the domestic market in Indonesia and export markets to meet the needs of customers which mainly consist of power plants, paper factories, cement industries and coal trading companies who makes a purchase of coal for resale. Export sales in 2010 were recorded dominating by 64 of the total Companys sales. Exports are made to various customers, especially China, India, and Thailand. 31 of the Companys coal sales were made under coal contract sales agreement, with the coal selling price was negotiated and adjusted annually or in shorter term based on the quality and specification of the coal with reference to the coal price prevailing in the market. Meanwhile, 69 of coal sales in 2010 were made in the spot market. In line with the increase in production, the number of sales has increased from 1.2 million tons in 2008, to 1.6 million tons in 2009, 1.5 million tons in 2010 and reached nearly 2 million tons in the six-month period ended June 30, 2011. Meanwhile, the sales value was fluctuating following the selling price and the amount of coal sales. The coal sales volume data and historical sales value in the last 3 three years is as follows: Coal Sales Volume in Tons Sales Value in m illion Rupiah 2008 2009 2010 June 2011 2008 2009 2010 June 2011 BIB 1,247,110 1,214,951 837,237 1,291,834 447,387 518,920 280,248 510,585 KIM - 353,834 614,342 629,780 385,617 187,345 309,601 336,244 TKS - - - 34,702 - - - 13,602 Tot al 1,247,110 1,568,785 1,451,579 1,956,316 833,004 706,265 589,850 860,432 Source: The Company Note: the total figure is the sum from respective subsidiaries and does not constitute consolidated figures of the Companys sales The Company and its subsidiaries recorded a historical gross profit margin and net profit margin for 26.72 and 3.66 in 2010. These gross profit margin and net profit margin increased to 32.63 and 13.24 in the six-month period ended June 30, 2011.

2. Factors Affecting the Business Activities and Operation Results

The Companys business activities and its results are affected by important factors as follow:  Global coal demand and coal prices  Production and business development  Coal mining contractors  Fluctuations of prices of fuel, spare parts and other materials supporting operational activities  The stripping ratio  Weather conditions  Government policy and legal changes. Global Coal Demand and Coal Prices Global coal demand is directly influenced by the growth of energy resource demand where the coal is the second biggest energy supplier after the oil, and indirectly influenced by the global economic growth. In line with the recovery of the financial crisis, demand for coal has undergone a significant increase. Particularly in Indonesia, based on the data from Data and Information Center of Department of Energy and Mineral Resources, the coal consumption level has shown 20 increment in the year 2010 which amounted to 45.9 million tons from 38.3 million tons in 2009. In future, it is predicted that the demand for coal will continue to rise. In addition to be focused to meet domestic needs in line with the 33 target fulfillment of the total Energy Mix year 2025 based on Presidential Decree No. 5 Year 2006 on National Energy Policy, increased demand for coal will also be supported by a surge in demand from the Asia market such as China and India as the major markets of Indonesian coal. The high demand from steel industries and power plants in China and the lack of domestic coal supply and supply restrictions of coal in India are predicted will push the sharp rise of coal imports in both countries. Indian coal demand is estimated to reach 696 million tons over this fiscal year through March 2012, while the domestic supply is approximately only 554 million tons. In other words there is a shortage of supply of around 142 million tons, with demand forecast that will continue to grow. Regarding the price, global coal prices is mainly influenced by the dynamics of supply and demand in the world market. Unlike other commodities, coal does not have a standard single price for the global market. Prices can fluctuate significantly in different geographical markets and for different types and qualities of coal.