Malaysia Smelting Corp. Bhd: Announcement: PT Koba Tin: Status of application for extension of CoW

(September 26, 2013) -- Malaysia Smelting Corporation Berhad wishes to advise that, further to the announcement of 4 September 2013, PT Koba Tin has received on 25 September 2013 the decision of the Minister of Energy and Mineral Resources (MEMR), Republic of Indonesia (RoI).

The MEMR?s decision which was stated to be effective retrospectively from 31 August 2013, affirmed the ending of the Contract of Work (CoW) between the Government of Rol and PT Koba Tin in the regencies of Bangka Tengah and Bangka Selatan, Province of Bangka Belitung Islands.

In the meantime, PT Koba Tin intends to seek recourse with the Government of Rol which may include an appeal process for re-instatement and extension of the CoW. PT Koba Tin will also consider other avenues to safeguard its interest.

As stated in the Annual Report for the year ended 31 December 2012, the Company had made full impairment on its investment in PT Koba Tin due to expiry of the CoW after 31 March 2013 . Further, as stated in the Unaudited Financial Statement for the half year ended 30 June 2013 , aside from the ongoing care and maintenance expenses incurred by PT Koba Tin, the Board does not expect the non-extension of the CoW to materially affect the Group?s operating performance for the year ending 31 December 2013. (ends)