Press Release: Straits Asia: IPO shares successfully priced

Singapore, 1 November 2006 - Straits Asia Resources Limited (Straits Asia or the Company), a resource development and mining group in the Asia Pacific region, is pleased to announce that the Company s initial public offering has been well received, attracting strong interest for both the International Offering and the Singapore Public Offer (together the Combined Offering). Straits Asia is believed to be the first mining company to be listed on the Singapore Exchange Securities Trading Limited (the SGX-ST).

At the Offering Price of S$0.60 per Offering Share, Straits Asia received applications and indications of interest amounting to approximately 1.1 billion shares, or approximately 3.6 times the 320 million Offering Shares offered for sale by Straits Resources Limited, through its subsidiary Straits Bulk and Industrial Pty Ltd (the Selling Shareholder).

14 million out of the total 320 million Offering Shares were allocated to successful applicants under the Singapore Public Offer. At the close of the Singapore Public Offer at 12.00 noon on 31 October 2006, 4,476 valid applications were received for a total of 71,502,000 shares, or approximately 5.1 times the size of the Singapore Public Offer.

Due to strong demand, an additional 48 million shares have been over-allotted by Macquarie Securities (Singapore) Pte Limited, the Sole Global Coordinator, Bookrunner and Underwriter for the Combined Offering. Macquarie Securities (Asia) Pte Limited is the Issue Manager for the Combined Offering. The Sub-underwriters of the Combined Offering are BNP Paribas Peregrine (Singapore) Ltd and CIMB-GK Securities Pte. Ltd.

The Combined Offering will raise approximately S$220.8 million (assuming the over-allotment option is exercised in full) for the Selling Shareholder, a wholly owned subsidiary of Straits Resources Limited, which is listed on the Australian Stock Exchange.

Trading of Straits Asia s shares on the SGX-ST on a ready basis is expected to commence at 9.00am (Singapore time) on 3 November 2006.

Mr Milan Jerkovic, Straits Asia s Non-Executive Chairman and the Chief Executive Officer of Straits Resources Limited, commented, We are delighted by the positive response we have had from institutional and retail investors and we welcome them as shareholders of Straits Asia. We believe that the response indicates that investors see Straits Asia as very well-positioned to supply the growing demand for energy from Asia s booming economies, and acknowledge our aim to be one of Asia-Pacific?s leading resource development and mining groups. (end of release)

About Straits Asia Resources Limited
Straits Asia owns and operates the Sebuku coal mine in South Kalimantan, Indonesia. Sebuku thermal coal is exported to a customer base comprising mainly industrial and utilities users in Asia. The Company has been ranked independently as one of the lowest cost thermal coal producers in the world.

In 2005, Sebuku produced approximately 3.0 million tonnes ((MT) of coal. It plans to increase its production to approximately 3.5 MT in 2006 and approximately 4.0 MT in 2007. As of May 31, 2006, Straits Asia reported estimated coal reserves of approximately 28.3 MT and coal resources of about 73.3 MT at its Sebuku concession area.

The Company, which has been operating in Southeast Asia for more than nine years, is led by an experienced management and operations team with a business track record of more than 30 years in Asia.

Reflecting the Company s business growth, Straits Asia achieved sales revenue of US$159.2 million and profit after tax of US$44.4 million for the financial year ended December 31, 2005. In the first half of FY2006, the Company recorded sales revenue of US$147.6 million and profit after tax of US$26.5 million.