PRESS RELEASE: KPC and Government Indonesia reach agreement on divestment offer matters

Following is a press release from PT Kaltim Prima Coal:

Government of Indonesia and Kaltim Prima Coal (KPC) have reached in principle agreement on finalising the current KPC divestment matter.

Because of the special circumstances surrounding the current situation, the parties have agreed the following:

? KPC will offer 51 percent of its shares to the Central Government at the agreed price

? The Central Government will assign those shares in the following tranches

? 20 to 25 percent to Perusahaan Tambang Batubara Bukit Asam (PTBA)

? 26 to 31 percent to Provincial Government of East Kalimantan / District Government of East Kutai

? All litigation associated with divestment will be removed

? The Central Government will conduct due diligence into the potential buyers

The Government and KPC are now proceeding to formalise and document this agreement as a basis for proceeding with the offer of shares once the litigation issue has been resolved. (*)

For further information, please contact: Lex Graefe ? Rio Tinto; Phone: (021) 527-4208; Fax: (021) 527-4270 -- OR -- John O?Reilly ? BP; Phone: (021) 7854-8400; Fax: (021) 7854-9182.

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