Release: BUMI management dismisses rumors

(Jakarta, 24 June 2010)--PT Bumi Resources, Tbk?s Annual General Meeting (AGM) today was successfully held with a quorum of 75.89% resulting in shareholders approving all agendas proposed in both the AGM and the subsequent Extraordinary General Meeting (EGM) including the execution of nonpreemptive issue, collateralization of the company?s assets, as well as strengthening of the company?s management.

A dividend amounting $57.1million was declared amounting to 30% of 2009 net income. Full details of the resolution approved in the AGM/EGM have already been posted electronically on the IDX website.

?We are thankful to the shareholders for approving the management?s proposal that will provide the company with strong base to realize stronger operational and financial performance with reduced debts in the coming year,? said BUMI President Director Ari Hudaya.

With the approved agenda, BUMI will implement its first step of the $1 billion deleveraging program announced last year- beginning with the significant reduction in debt from the non preemptives issue. With a significant debt reduction, the company aims to boost financial performance through higher coal prices, sales, production, stronger internal cash flows and lower interest charges.

Bumi is on track to achieving sales of +64 m tons (vs 58 m tons in FY'09), production + 67 m tons (vs 63 m tons in FY09) at an average fob price of minimum $67/ton. (vs $63/ton in FY09) with an exponential rise in EBITDA.

Rumors Dismissed

Other than the business agenda, BUMI management also gave assurance to shareholders that the company?s tax status ? after a long and closely monitored public process ? is stated by the Indonesia?s judicial system including the Tax Court and the Supreme Court as clear and without outstanding.

?In the last 5 years, from 2005 ? 2009, BUMI has paid up to US$1.1 billion in tax only ? excluding royalty and other form of levies and taxes ? to the state, which places BUMI as a group as one of Indonesia?s largest corporate tax payer. This is possible because BUMI?s operation as a group has indeed gotten bigger and healthier. This proves that the logic behind the prevailing rumors that the company has sought means, especially illegal means, to reduce the company?s tax obligation,? said BUMI Director Eddie Soebari.

Eddie also added that the large tax payments already included adjustments in 2005, 2006 and 2007 following the government's sunset policy.

"Our sunset policy adjustment were very large, and were therefore carried out under close guidance and consultation with the tax office's upper echelon officials," said Eddie.

In line with the clarification, BUMI Management ensured shareholders that the rumors currently circulating in the public about the company?s alleged connection with Gayus Tambunan, a former tax official currently under the police custody as completely irrational. The company cautioned shareholders to exercise logic and to demand facts when such rumors appear.(end of release)