Release: Straits: Debt refinancing

(Singapore ? 17 October 2008)-- Straits Asia Resources Limited wishes to provide an update on its progress regarding the refinancing of the US$230 million bridge facility that is due for repayment on 17 December 2008.

Straits Asia has received from Standard Chartered Bank a committed, credit-committee-approved offer of US$300 million. This 18-month credit facility may be utilised to: (i) refinance the existing US$230 million bridge loan; and (ii) provide additional funding for Straits Asia to pursue its capital expansion and development plans.

Straits Asia and Standard Chartered Bank are now progressing to documentation of the facility and Straits Asia will announce material terms of the facility upon finalization of documentation, which is expected before the end of October. Financial close is targeted for early to mid November. (end of release)

Editor's note: Straits Asia, which runs Sebuku coal mine in South Kalimantan and Jembayan coal mine in East Kalimantan, is a unit of Australian mining firm Straits Resources Limited.