Release: Herald Resources: Bumi?s interest in Herald exceeds 50%

(Jakarta and Sydney, 17 July 2008)--PT Bumi Resources (BUMI) today announced that its wholly owned subsidiary, Calipso Investment Pte Ltd had obtained as interest in 51.34% of Herald shares.

The Herald Directors have unanimously recommended that herald shareholder immediately accept Calipso's offer.

As result of obtaining an interest in more than 50% of Herald's share, Calipso's offer period is automatically extended by 14 days so that it is now scheduled to close 7.00 pm (Sydney time) on Wednesday 30 July 2008 (unless extended)

Herald shareholders should be aware that if they do not accept Calipso's before it closes, and Calipso holds a majority of Herald shares but is not entitled to proceed with compulsory acquisition, liquidity in Herald shares may be diminished and the Herald share price may fall below the offer price of $2.85.

Bumi has begun discussions with the Herald board in relation to arrangements to appoint an appropriate number of Bumi's nominees to the Herald board and will provide updated information upon further developments.

Bumi recognises Herald's existing strong management team and employees and intends to work with them to progress the Dairi project. (end of edited release)