Release: Vallar: Update on the acquisition of holdings in Bumi and Berau

Creation of London-listed Indonesian coal champion

Further to the announcement of 16 November 2010, Vallar provides the following update.

Vallar is pleased with the progress of the Acquisition and currently expects to publish a prospectus in relation to the Acquisition, and the Bumi Transaction to close, in February 2011. Closing of the Berau Transaction is expected to take place on or around 8 April 2011, following the expiry of the BCE Lock-up.

The terms of the Acquisition remain as announced on 16 November 2010.

As noted in. the announcement of 16 November 2010, the Acquisition is expected to give rise to significant benefits for stakeholders in each of Bumi, Berau and Vallar through:

? maximising the potential of the largest coal producing assets in Indonesia;

? leveraging management experience, industry relationships and access to capital; and

? exposure to the largest and fifth Largest Indonesian coal producers by production with a significant resource base and track record of profitability.

In addition, the potential of the proposed Acquisition represents the delivery of the Vallar strategy announced at the time of its IPO to seek to create shareholder value through establishing a business with significant operations in the global metals, mining and resources sector with the intention of increasing its scale and profitability by efficiently deploying capital to expand and enhance current operations and by recruiting and retaining experienced and specialist industry personnel for key management positions. (end of release)