Release: Straits Asia comments on new Indonesia mining law

(Singapore - 18 December 2008)--Straits Asia notes that after an extensive period of review and industry consultation the Indonesian Parliament has passed the Bill on Mineral and Coal Mining (?New Mining Law?). The New Mining Law is intended to provide for stability in the regulatory environment and replaces the previous mining law that dates from 1967.

Straits Asia and its advisers have conducted a preliminary assessment of the New Mining Law and have determined from the information available that there is not expected to be any materially adverse impact on the Company?s operations under the New Mining Law, including with regard to royalties, mining area, divestment or the now mandated priority use of local contractors (the Company already uses local contractors). As more information is made available, principally in the form of supporting Government regulations, the Company will continue its review.

Of particular note, the New Mining Law supports the continuation of the Company?s Coal Cooperation Contract at the Sebuku mine and provides for foreign ownership of Indonesian mining assets. The Company, through its group subsidiaries, continues to hold all relevant licences and agreements with various levels of Government in relation to all its mining assets and the Group will continue to act in accordance with these licences and agreements and the New Mining Law. (end of release)