Handini signs MoU to carry out joint coal mining activities

(15 December 2009)--Handini Resources Limited (The Company) wishes to announce that it has entered into a Memorandum of Understanding (MoU) with PT Toba Jaya (Toba Jaya) to formulate a joint venture or cooperation to jointly carry out Mining Activities in the coal concession at Muara Bungo, Jambi, Indonesia

As disclosed in the Notice of Meeting to shareholders on 31 July 2008, Handini Resources Limited (Handini) has entered into a Joint- Venture Mining Agreement on 16 May 2008 and subsequently the Amended and Restated Agreement dated 30 September 2008 with PT Nusantara Termal Coal (?NTC?), a Contractor to the Government of Indonesia in a Contract Coal of Works dated 19 February 1993, whereby NTC has agreed to sell to HRL coal from its mine in the aggregate amount of 14,400,000 Tonnes under the terms and conditions contained therein. The Company is in the position to procure new mining contracts with NTC to carry Out Mining Activities within the coal concession.

Toba Jaya is an established mining contractor in the Republic of Indonesia that possesses the necessary expertise, machineries and financial capabilities to conduct exploration, construction, exploitation and transportation of coal and other minerals.

Toba Jaya is willing to provide the necessary expertise, machineries and working capital to carry out Mining Activities in the NTC Coal Tenement jointly with the Company.

Subject to satisfaction of the Conditions Precedent, on the Completion Date Handini and Toba Jaya shall execute the Joint Mining Agreement pursuant to the exclusive right to conduct the Mining Activities in the NTC Coal Tenement.

It is agreed by the Parties that, inter alia, the Joint Mining Agreement shall provide for a royalty payment to Handini whereby the terms of such royalty payment shall be mutually agreed upon.

An announcement will be made once the Joint Mining Agreement is executed. (end of release)