Vallar PLC : Closing of Bumi Transaction

(4 March 2011)--Vallar is pleased to announce the closing of the Bumi Transaction and the assumption of control of PT Berau Coal Energy Tbk through the arrangements with PT Bukit Mutiara described in the prospectus published by Vallar on 24 February 2011.

Under the terms of the Bumi Transaction, Vallar (through its subsidiary, Vallar Investments UK Limited) has received a total of 5,193,350,000 shares in PT Bumi Resources Tbk from Bakrie & Brothers and Long Haul (together the "Bakrie Group") and has issued 90,072,216 shares in Vallar to the Bakrie Group of which 28,861,172 are new Voting Ordinary Shares and 61,211,044 are new Suspended Voting Ordinary Shares.

Applications have been made to the UK Listing Authority for 28,861,172 new Voting Ordinary Shares to be admitted to the standard listing segment of the Official List of the UK Listing Authority and to London Stock Exchange plc for 28,861,172 new Voting Ordinary Shares to be admitted to trading on the London Stock Exchange's main market for listed securities. It is expected Admission will become effective, and that dealings will commence at 8.00 a.m. on Monday, 7 March 2011.

After the expiry of the BCE Lock-up on or around 8 April 2011, Mutiara is expected to transfer title to, and registered ownership of, a total of 26,175,000,000 shares in Berau to the Vallar Group. At this time, Vallar will issue 52,297,680 New Vallar Ordinary Shares, of which 27,772,829 will be New Vallar Voting Ordinary Shares issued to Mutiara and 24,524,851 will be Suspended Voting Ordinary Shares issued directly to Long Haul pursuant to the Mutiara Share Transaction Arrangements. As part of the Berau Transaction Vallar also agreed to pay US$739 million in cash consideration for 35 per cent of Berau. Of this amount, approximately US$639 million was paid to Mutiara on 18 November 2010 and, following the closing of the Bumi Resources Transaction, the balance will be released shortly to Bumi Resources from an escrow arrangement.

On completion of the Acquisition on or around 8 April 2011, the Bakrie Group will own 40,763,812 Voting Ordinary Shares (representing 29.9 per cent of Vallar's voting share capital) and 73,833,255 Suspended Voting Ordinary Shares

(representing, in aggregate, approximately 54.6 per cent. of Vallar's issued share capital) and Mutiara will own 27,772,829 Voting Ordinary Shares (representing approximately 20.4 per cent of Vallar's voting share capital and approximately 13.2 per cent of Vallar's issued share capital).(end of edited release)