Straits Resources: Performance payment of $115 m received by Straits

(27 October 2009)--Straits Resources Ltd is pleased to announce that it has received the performance payment of US$115 million for the sale of its 60% interest in Straits Bulk and Industrial Pty Ltd to the PTT Group of companies, which was completed in April 2009.

This performance payment was paid as a result of the Indonesian government formally approving the re-zoning of land at Sebuku as production forest. The main rezoned area at Sebuku is directly adjacent to the north of the current mining operations in the Tanah Putih pit.

With this re-zoning Straits Asia Resources Limited is now in a position to uncover substantial additional resource potential and to execute plans to recover coal from this area and expand coal production at the Sebuku operations. The current installed infrastructure capacity at Sebuku is 8 million tonnes of coal production per annum and SAR has stated its target to achieve this rate at Sebuku within 3 to 5 years. (end of release)