Update on KSC joint venture

(2 October 2012)--White Energy Company Limited (?White Energy?) - As previously advised in the Company?s Annual Report, a petition was filed by a number of local creditors of PT Kaltim Supacoal (KSC) in the Commercial Court of Surabaya, Indonesia, pursuant to which administrators were appointed to KSC, the joint venture between BCBCS Singapore Pte Ltd and PT Bayan Resources Tbk.

At a subsequent hearing at the above mentioned court, and as published in local Indonesian newspapers yesterday, KSC has now been placed into bankruptcy and curators have been appointed to manage this process.

Shareholders will be aware that the White Energy Group has previously fully impaired its investment in KSC following the repudiation of the joint venture by Bayan Resources, and as such the bankruptcy process will not have any further impact on the accounting results of the White Energy Group.(ends)