Release: Bayan Resources sells 20% stake to Kepco

(Jakarta, 23 July 2010)--PT Bayan Resources Tbk (Bayan) is pleased to announce that the management of Korea Electric Power Corporation (KEPCO) has approved its plan to buy a 20 percent stake of Bayan.

Bayan has provisionally agreed, subject to the Board of Commissioners approval and other regulatory requirements being satisfied, to supply 2 million MT of coal per annum commencing in 2012 thereafter increasing to 7 million MT per annum in 2015 to KEPCO.

Eddie Chin, president director of PT Bayan Resources Tbk, said ?We welcome KEPCO?s participation in our group and we believe this additional strategic partnership, together with the existing partnership with Enel is an affirmation of our successful track record in the coal industry to date and another vote of confidence in the current management team.

With this agreement, we will be able to leverage off KEPCO?s global brand and further support Bayan?s rapid growth. The bulk of the coal will be sourced from the Tabang concessions which are in line with the management decision to ramp up production from these mines.?

About PT Bayan Resources Tbk
Bayan has integrated coal mining, processing and logistics operations. The company is engaged in the business of surface open cut mining of thermal coal. Coal production also includes other grades of coal which comprise of environmentally-friendly, low sulfur, sub-bituminous coal and semi-soft coking coal.

Through various companies, Bayan has the exclusive rights to mine under five CCOWs entered into with the Government of Indonesia and three KPs granted by regional governments over a total concession area of 81,265 hectares with coal reserves approximately at 458 million MT and over 1 billion MT of resources. (end of release)