Kangaroo updates on Bayan Resources/Pakar transaction

International coal producer Kangaroo Resources Limited (?KRL?) and PT Bayan Resources (?Bayan?) Tbk said on Friday that continue to work through all legal and compliance issues relating to the Bayan Resources/Pakar Coal Project transaction.

Both Bayan Resources and Kangaroo remain committed to the proposed transaction process and are confident in the ultimate outcome, that the Pakar Thermal Coal Project will be vended to KRL, with KRL shares to be issued as consideration to Bayan as previously reported to the ASX on 29th December2010.

The due diligence completion date for the transaction had initially been set at 30 days (28th January 2011), but it has proved difficult to complete the exercise in this short timeframe owing to the complexity of fulfilling all licensing, permitting and other legal requirements in Indonesia, as set out in the due diligence process. As a result, both Bayan and Kangaroo have agreed to extend the due diligence period to enable the completion of a small number of outstanding items. No specific date is given for the completion of the due diligence, but both parties are aiming to finalise the process in the shortest possible timeframe.

This extension will not delay completion of the transaction. Both Bayan and Kangaroo are continuing to finalize independent experts? reviews on the assets, ahead of shareholder meetings to approve the transaction. This process will continue in parallel with the completion of due diligence as both parties are entirely confident in the ultimate success of the transaction. (kanti)