Lanna: Temporary stop of mining operation at coal mine project No.1 in Indonesia

(22 Dec 2008) According to the notification from PT. Lanna Harita Indonesia (LHI),a subsidiary company Lanna Resources Public Company Limited and the owner of the Coal Mine Project No.1 with the Coal Contract of Work in Indonesia, that there have been heavy rain storms during this past period causing the softening of soil at boundary of inactive mine pits and eventual accident with the sliding of some parts of the pit boundary, which flooded nearby village.

LHI immediately sent its safety unit to assist the community and has completed and restored normal conditions of the village and community.

Subsequently, the officials from the Ministry of Mines and Energy went in for inspection and held joint meetings in Jakarta during the past week and notified LHI to temporarily stop its mining operation according to coal mining regulations in order for LHI to carry out the rehabilitation and improvement of the areas in accordance with the international standards with complete safety and capacity in order to prevent future problems.

Accordingly, LHI has already started the land rehabilitation and improvement of the affected areas and expects to complete the tasks according to the regulations of the Ministry of Mines and Energy within 1-2 months, of which the coal delivery and shipment plan for the customers for year 2008 will not be affected as there are already sufficient coal inventory.

In the mean time, LHI has been given permit by the Ministry of Mines and Energy to continue the export of coals from its inventory.

Contracted coal shipment and delivery schedule of approximately 95,000 tons for January 2009, shall be deferred to later date.

Currently, the Company holds 55 percent shareholding in LHI with the paid-up capital of USD 8 million.(end of announcement)