Exalt to enter Indonesian coal industry

By Romel S. Gurky

Australia-listed company Exalt Resources Limited announced it has signed a term sheet giving Exalt exclusive rights to investigate and negotiate the acquisition of 100 percent of the issued capital of Odni Holdings Pte. (ODNI), a Singapore incorporated coal investment company.

It said that the rights acquired offer the ability for Exalt to apply International/Australian capital to further delineate and develop the coal mining opportunities identified by ODNI which has secured right to acquire varying degrees of ownership interests in a total of six Indonesian coal projects.

It said that three of these projects are currently the subject of due diligence and formal documentation, which is expected to be complete in the second quarter of 2012.

The three are Damanka project in East Kalimantan, PT Bakti Initi Guna (?BIG?) Project and Sugico South Sumatra project:

Damanka - an existing production concession in East Kalimantan covering 4,923 hectares in the Muara Wahau Coal Field coal area, in which ODNI has secured the option to acquire a 70% ownership interest by the initial payment of USD$250,000 (which has been paid) and a further payment of USD$800,000 upon the execution of a Share Purchase Agreement.

Initial exploration expenditure on the Damanka Project which has been granted a production license, is expected to be in the order of US$1.5 million.

Sugico South Sumatra project covering approximately 250,000 hectares, on which ODNI has secured the option to acquire a 50% ownership interest by paying an initial sum of US$10 million and by funding an exploration program of up to US$20 million and the payment of a production and sales based royalty of US$2.00 per ton.

Initial exploration expenditure on this project is expected to be approximately US$5.0 million.

Project BIG - the PT Bakti Initi Guna (?BIG?) Project consists of a concession area covering a total area of 4,969 hectares in the Antutan region of the Bulungan Regency in East Kalimantan province. The area is held as an exploration mining business permit allowing for all exploration activities in relation to coal deposits.

Summary details of the other initial three Projects that are subject to option to purchase agreements, as part of the ODNI acquisition are:

Project Name	Status, Location & Concession Area
MMBP	Option fee of US$100,000 has been paid.
	Additional consideration of US$1 per ton of Reserve delineated and defined in accordance with the JORC Code to acquire up to 100%.
	Status:  Subject to due diligence.
	IUP Holder: PT Mitra Maju Bangun Persada
	IUP Eksplorasi No: 437/K-I V/540/2010
	Location:Tanjung Palas Barat District, Bulungan Regency, East Kalimantan Province
	Concession area: 5,312 hectares
West Papua	No option fee payable.
	Additional consideration of approximately US$2 per ton of Reserve delineated and defined in accordance with the JORC Code to acquire up to 50% interest.
	Status: Subject to due diligence.
	IUP Holder: PT Delapan Inti Power
	IUP Eksplorasi No: 97/545/V/2011
	Location: Datatran lsim District, Manokwari Regency, West Papua Province
	Concession area: 14,960 hectares
	IUP Holder: PT Sumber Daya Energi
	IUP Eksplorasi No: 27 Tahun 2011
	Location: Puncakjaya Regency, Papua Province
	Concession area: 23,990 hectares
Karin	Option fee of US$25,000 has been paid.
	Additional consideration of US$1 per ton of Reserve delineated and defined in accordance with the JORC Code to acquire up to 100% interest.
	Status: Subject to due diligence.
	IUP Holder: PT Karindangan
	IUP Eksplorasi No: 188.45/439/2010
	Location: Montallat District, North Barito Regency, East Kalimantan Province
	Concession area: 2,586 hectares

Editing by Adianto P. Simamora