Newmont signs agreement with Indonesia's central government for sale of final divestiture stake

(DENVER, May 10, 2011)-- Newmont Mining Corporation announced that a definitive agreement was signed on Friday, May 6, 2011 between its subsidiary and an agency of the Indonesian Government's Ministry of Finance for the sale and purchase of the final 7% divestiture stake in PT Newmont Nusa Tenggara ("PTNNT"), as required under the terms of PTNNT's Contract of Work with the Indonesian Government. PTNNT operates the Batu Hijau copper and gold mine in Indonesia.

Nusa Tenggara Partnership B.V. ("NTPBV"), which holds Newmont's shares in PTNNT together with shares held by a subsidiary of Sumitomo Corporation of Japan, entered into the agreement with Pusat Investasi Pemerintah ("PIP"). The Government of Indonesia designated PIP as the buyer for the final 7% interest by exercising a right of first refusal set out in the Contract of Work. Upon closing of the transaction, expected later this month, NTPBV's interest in PTNNT will be reduced to 49%, as required under the Contract of Work. The price agreed for the 7% stake is approximately $246.8 million.

Newmont's economic interest in PTNNT following the closing of the transaction will be 44.56%, which includes direct ownership of 27.56% and a 17% effective economic interest through financing arrangements with existing shareholders. Newmont expects to continue to consolidate PTNNT in its consolidated financial statements after the sale is completed.

"With the signing of this transaction, we have successfully fulfilled our divestiture obligations," said Richard O'Brien, Newmont's President and Chief Executive Officer. "We are pleased to welcome PIP as a shareholder in PTNNT as this will result in all levels of the Indonesian government -regional, provincial and central - participating in the ownership of PTNNT and, combined with our existing shareholders, will create a mutually beneficial partnership as we evaluate exploration and expansion opportunities for our Indonesian assets."

The divestiture process for PTNNT commenced in 2006, leading to acquisition of the first 24% stake by PT Multi Daerah Bersaing ("MDB"), a consortium of two regional governments, the provincial government, and PT Bumi Resource Minerals. Upon closing of the transaction with PIP, ownership in PTNNT will be 49% held by NTPBV, 24% held by MDB, 17.8% held by PT Pukuafu Indah, 7% held by PIP, and 2.2% held by PT Indonesia Masbaga Investama. (end of release)