White Energy Company Limited: Update on KSC joint venture

(March 2, 2012)-- As previously advised to the market, on 27 December 2011 White Energy?s wholly owned subsidiaries commenced legal proceedings in the High Court of the Republic of Singapore against PT Bayan Resources Tbk (?Bayan?), among other matters, seeking damages for breach of the Joint Venture Deed between the KSC shareholders including the obligation to supply coal to KSC and the obligation to provide funding to KSC. Bayan has since filed a defence to the claim, and a counterclaim against BCBC Singapore Pte Ltd (?BCBCS?) and White Energy seeking damages.

Recently Bayan gave BCBCS notice purporting to terminate the Joint Venture Deed. BCBCS considers that, among other matters, Bayan?s purported termination amounts to a wrongful repudiation of Bayan?s obligations, entitling BCBCS to terminate the Joint Venture Deed.

Today, BCBCS has accepted Bayan?s repudiation, which brings the Joint Venture Deed to an end. BCBCS intends to pursue Bayan and all responsible entities for all damages suffered as a result of Bayan?s wrongful repudiation, which has brought the joint venture to an end.(end of release)