APAC Coal updates E. Kalimatan coal activity

The following is an excerpt from APAC Coal Limited 's quarterly report released on Wednesday.

Review of Operations Coal

The Board and the legal advisors wish to reiterate that the previous judgements (adjudicated by the Administrative Court) are not the ones determining the ?title of ownership of the shares? because a dispute on title of shares ownership is under the competence of the District Court and not the Administrative Court.

The outcome of the Judicial Review has been formally received by the lawyers for PT Deefu Chemical Indonesia, shareholder of PT Batubara Selaras Sapta.

On Monday 17th October, 2011, our lawyers from The Law Offices of Amir Syamsuddin and Partners filed the lawsuit (civil claim) with the District Court of Southern Jakarta. The registration number of this Civil Suit is 561/Pdt.G/2011/PN.JKT.SEL.

Our lawyers are currently preparing the announcement that is required to be placed in the local newspapers.

On Tuesday 18th October, 2011, Amir Syamsuddin was appointed the Minister for Law, Justice and Human rights for the Republic of Indonesia. Amir Syamsuddin is the founding partner of Amir Syamsuddin and Partners, which was formed in 1984.

The Board is confident of The Law Offices of Amir Syamsuddin and Partners? ability to achieve a positive result for APAC Coal Ltd.

The Board will continue to keep our shareholders updated on any material development in connection with this legal case.

In order to assist APAC Coal to advance the litigation process and exploration activities, APAC Coal is in the advance stage of negotiations with shortlisted strategic partners who will provide funds and expertise to expedite the overall development of the concession area.

Aie Dingin Iron Ore Project
Since the last update, the construction of the infrastructure-access mining road has reached PIT 1 of the Aie Ding in Project. Overall progress of the roadwork?s has reached 18% completion. The iron ore mining operations is scheduled to commence in early November 2011, with trial production scheduled at end November 2011. (end of edited excerpt)