Release: Herald Resources: Bumi to increase Herald offer to A$2.85 per share

(Jakarta and Sydney, 2 July 2008)--PT Bumi Resources Tbk. announced today that its wholly-owned subsidiary, Calipso Investment Pte Ltd (Calipso) will increase its offer price under its unconditional takeover for Herald Resources Limited (Herald) (Offer) to $2.85 cash per Herald share.

Calipso will also extend its offer so that it will close at 7:00pm (Sydney time) on 18 July 2008 (unless further extended or withdrawn)

Calipso?s increased offer of $2.85 per Herald share represents a 5 cent per share premium to the $2.8 per Herald share bid of Tango Mining Pte. Ltd and a 102% premium to the 3 month volume weighted average price of Herald shares prior to the announcement of Calipso's original bid on 12 December 2007.

The President Director of Bumi, Ari Hudaya, encouraged Herald shareholders to accept Calipso?s increased and unconditional offer as soon as possible. Hudaya noted that Calipso has offered shareholders accelerated payment terms so that shareholders who accept Calipso?s offer will receive cash payment for their shares within 12 days.

Herald shareholders with questions on the offer should contact the offer information line on 1800 423 047 (toll-free) (callers within Australia) or +61 2 89869356 (callers outside Australia) (end of release)