Release: Straits Asia Resources: Declaration of force majeure at Sebuku

July 31, 2007 – Straits Asia Resources Limited, would like to advise the Singapore Exchange that Force Majeure has been declared at our Sebuku coal operation (Sebuku) in South Kalimantan, Indonesia.

Following on from the extended wet season in Kalimantan approximately 417mm of rainfall has fallen at Sebuku in the last week resulting in the disruption of mining operations. This rainfall event was beyond our reasonable control and its impact has affected and will affect the performance of obligations under agreements to deliver coal to customers.

The Force Majeure event commenced on 30th July 2007. All reasonable steps are being undertaken to mitigate the impact of the event and resume normal operational performance.

We will keep the market advised of developments in relation to this event, including when the Force Majeure condition is lifted. (end of release)