Release: Herald Resources: Forestry update on Dairi zinc/lead project

29 June 2007 -- As previously advised, the Company is awaiting forestry approval in order to proceed to full development at the Dairi Project. In May the Company advised that the Minister of Forestry was due to respond in June to a recommendation by Commission IV, (a sub-committee of the Indonesian Parliament) that the Minister issue the forestry approval.

 

At a working session in June, the Minister responded that, in his opinion, in order for him to issue approvals for underground mining in protected forests, a Presidential Decree would be required.

 

A draft Presidential Decree, compiled jointly by the Depts of Forestry, Energy/Minerals and Environment, has been submitted to the President through the Cabinet Secretariat and is currently being reviewed by the legal section of the Cabinet Secretariat office. That draft states that permits for underground mining in protected forests should be issued for projects where the feasibility and environmental studies for site construction have been approved after consultation with the Forestry Department, and the project otherwise complies with the prevailing legislation. Transitional provisions exempt studies already approved and remaining current e.g. those for the Dairi Project.

 

Assuming the Presidential Decree is issued, the Company would expect that the Minister of Forestry would grant forestry approval for the Dairi Project in short order thereafter. (end of release)