Arbitration Panel restrains Pukuafu from continuing lawsuits against Newmont

Jakarta, 23 April 2011 ? On 7 April 2011, an arbitration panel, formed through the Singapore International Arbitration Centre (SIAC), ruled that PT Pukuafu Indah (?PTPI?) is in breach of its contractual commitment to not bring claims against Newmont Mining Corporation and its subsidiaries in Indonesian court claiming rights in the PT Newmont Nusa Tenggara (?PTNNT?) shares that are required to be divested under the terms of PTNNT?s Contract of Work with the Government of the Republic of Indonesia. PTPI signed a release agreement in November 2009 in which it agreed not to prosecute such claims or to file new claims. Despite the agreement, PTPI has continued to prosecute its claims and has filed numerous frivolous lawsuits.

"We are pleased with the decision of the SIAC arbitration panel, which confirms that PTPI has failed to abide by its contractual obligations,? said Blake Rhodes, Newmont?s Vice President, Deputy General Counsel and Corporate Development. "We would welcome PTPI?s compliance with the SIAC order by ceasing to prosecute its frivolous litigation, as well as by paying the more than US$11 million in damages, costs, and expenses. If PTPI fails to comply, we have no choice but to continue to enforce the award in Indonesian, Singapore and other courts.?

In August 2010, Newmont Indonesia Limited (?NIL?) and NVL USA Limited (?NVL?), Newmont?s subsidiaries that are parties to the relevant agreements with PTPI and its shareholders, commenced the arbitration against PTPI under SIAC, as provided in relevant financing and related agreements. NIL and NVL sought declarations that PTPI violated the release agreement by failing to dismiss its Indonesian lawsuits, that PTPI is in breach of the November 2009 loan facility and related agreements, and that NIL and NVL are entitled to damages arising from PTPI?s and its shareholders? conduct.

In October 2010, the SIAC panel granted interim relief in favor of NIL and NVL that, like the 7 April decision, requires PTPI to stop prosecuting its frivolous Indonesian lawsuits. PTPI failed to abide by the October interim order, which necessitated the initiation by NIL and NVL of enforcement proceedings in the High Court of the Republic of Singapore.

Earlier this month, the Singapore High Court entered an order, based on the October 2010 SIAC interim award, restraining PTPI and its President Director from continuing to prosecute the divestiture-related claims. Certain shareholders of PTPI have retained the Singapore law firm of Tan & Au to oppose entry of the order against them.

?We could not be more pleased with their decision to oppose entry of the order as this development presents us with the opportunity to contest PTPI?s numerous public statements about its rights in a court of law,? said Rhodes. ?While our preference is always to find resolutions to disputes, PTPI?s current posture has given us no option but to protect our rights through legitimate arbitration and court proceedings.? (end of release)