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Adaro Energy

On Track to Build a Bigger and Better Adaro Energy Citi Indonesia Investor Conference August 4-5, 2010 Indonesia

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Disclaimer

These materials have been prepared by PT Adaro Energy (the "Company") and have not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in these materials. The Company or any of its affiliates, advisers or representatives accepts no liability whatsoever for any loss howsoever arising from any information presented or contained in these materials. The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed. These materials contain statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition of the Company. These statements can be recognized by the use of words such as "expects," "plan," "will," "estimates," "projects," "intends," or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. The Company has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances. These materials are for information purposes only and do not constitute or form part of an offer, solicitation or invitation of any offer to buy or subscribe for any securities of the Company, in any jurisdiction, nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract, commitment or investment decision whatsoever. Any decision to purchase or subscribe for any securities of the Company should be made after seeking appropriate professional advice.

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Quick Update Company Overview Key Investment Highlights

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Quick Update

Adaro Energy recorded production and sales during 2Q10 were higher by 15% and 13% respectively compared to 2Q09. Adaro Energy recorded production and sales during 1H10 were higher by 20% and 22% respectively compared to 1H09. The unprecedented high levels of rainfall in 2Q10 and especially in June, the highest in the last seven years, might impact Adaro production target adversely if it continues into the 2H10. Envirocoal-Wara coal production is now at an average daily rate of 6,000 tonnes per day or 2 million tonnes per year. The first Adaro fuel barge berthed and loaded fuel from the IBT terminal on May 3rd 2010.

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Quick Update (cont'd)

The Indonesian Government approved the formation of the joint venture between Adaro Energy and BHP Billiton for the IndoMet Coal Project on May 2010. Effective June 11th 2010, Boy Thohir was appointed a Commissioner and Chia Ah Hoo and M. Syah Indra Aman were appointed Directors to the existing Boards of each of the 7 concession companies that comprise the IndoMet Coal Project. Exploring new projects: coal enhancement technology and focus on further downstream integration into power projects. Very good access to capital as evidenced by the US$800mn 10year bonds and US$500mn standby facility, resulting in a strong capital structure with ample liquidity ­ capital structure has significantly improved with an annualized 0.8x net debt/EBITDA and a cash balance of Rp 7.6 trillion. Repriced US$500mn amortizing revolving facility from a margin of 325bps to 200bps

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2Q10 Operational Results

Consolidated Production Volume and Sales

Quick Update

Units Production Sales MT MT

2Q09 8.95 9.10

2Q10 10.26 10.29

% change 15% 13%

Units Production Sales MT MT

1H09 17.99 17.83

1H10 21.62 21.75

% change 20% 22%

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Strong Financial Performance

Quick Update

1Q09

Net Revenue (Rp bn) Cost of Revenue (Rp bn) Operating income (Rp bn) Net income (Rp bn) EBITDA (Rp bn) Total Assets (Rp bn) Cash and Cash Equivalents (Rp bn) Interest Expense and Finance Charges (Rp bn) Total Interest Bearing Debt (Rp bn) Cost of USD Bank Loans Stockholders' Equity (Rp bn) Net Debt to Equity (x) 6,533 (3,704) 2,446 1,145 2,710 36,356 3,587 166 11,601 2.3 - 5.5% 15,522 0.46

1Q10

6,279 (4,033) 2,057 861 2,434 41,850 7,561 260 14,972 1.4 - 4.5% 18,169 0.41

% change

-3.9% 8.9% -15.9% -24.8% -10.2% 15.1% 110.8% 56% 29.1%

17.1% -11.8%

* The impact of IDR appreciation against USD during the year has translated in the decline in revenues, EBITDA, net income in 1Q10 financial performance.

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Quick Update Company Overview Key Investment Highlights

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Key Messages

Company Overview

In 2010 we will focus on building our base for a more competitive future We will continue to execute our long term strategy of annual organic growth, increased integration and efficiency improvements We will focus on project execution, specifically the construction of various conveyor systems and mine-mouth power plant It is a marathon not a sprint. We will deliver value by staying focused on building long term low cost assets We are on track to build a bigger and better Adaro Energy Adaro Indonesia: Operationally strong and large; exploring initiatives to continue to expand capacity Contribution of operating subsidiaries to increase We believe the demand outlook for coal is good, especially in emerging markets of Asia Our better access to capital has given us the financial foundation to grow

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Corporate Milestones: From pre-LBO, LBO, to growth

Pre-LBO

1982 ...2002

LBO

2005 2006 2007

Growth

2008 2009 2010

1982: Coal Cooperation Agreement signed 1990: Envirocoal trademark obtained 1992: First year of commercial production (1 Mt) 2002: Production of 20.8 Mt

Infrastructure developments post LBO Production of 34.4 Mt

First ratings upgrade by Moody's to Ba2 Adaro Energy IPO on IDX, raising US$1.3 bn Production of 38.5 Mt Completed dredging of Barito River channel mouth

Joint Venture with BHP Billiton in the Indonesian Coal Project Commenced production at Wara mine

US$973 mn LBO by consortium of international investors US$400 mn bonds to refinance LBO debt

US$400 mn bonds make-whole call at premium Refinancing with US$750 mn bank loans Production of 36.1 Mt Acquired SIS (mining contractor)

Second ratings upgrade by Moody's to Ba1 Acquired OML (barging contractor) Production of 41 Mt US$500 mn RCF signed Issue US$ 800 mn 7.625% Guaranteed Senior Notes due 2019

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Adaro Energy's Vision

Company Overview

To be the largest and most efficient integrated coal mining and energy company in South East Asia

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Adaro Energy at a Glance

Production/Sales 50Mt capacity 40.6Mt production in 2009 (38.5Mt in 2008) 10 Years CAGR of 11.6%

Company Overview

Envirocoal Customers Pricing Cost Resources ­ JORC Compliant Location License of Adaro Indonesia Operations Pit to Port Subsidiaries (contracting, barging, shiploading, dredging, port services, marketing) Growth Strategy

Sub bituminous, moderate CV, high moisture ultra-low sulfur, ash and NoX emissions Substantially all customers are blue-chip power utilities Substantially annual price negotiation part of which is indexlinked Low to middle production costs compared to peers 3.5 billion tones Tabalong and Balangan districts, South Kalimantan First Generation CCA valid until 2022 The largest single site coal mine in the southern hemisphere, vertically integrated from pit to port Each subsidiary is or will become an independent profit center and contribute value beyond the efficient high quality services they provide Adaro Increase resources, organic annual growth, marketing focus on Asia and further integrate and improve operations

Approximately 84%of Adaro Energy's EBITDA is Adaro Indonesia, but as the subsidiaries grow and 11 improve, their contribution will increase

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Operating Subsidiaries to Increase Value Creation

PIT TO PORT INTEGRATION

PT Adaro Energy Tbk

100%

Listed on IDX in July 2008 Adaro Energy FY09: Revenue: Rp26,938 billion EBITDA: Rp11,017 billion

Company Overview

Alam Tri Abadi

Adaro Indonesia FY09: Revenue: Rp25,027 billion EBITDA: Rp9,249 billion

Simplified structure

100%

100%

100%

100%

95%-100%-100%

OML ­ MBP ­ HBI

51.20%

100%

100% Coaltrade

Adaro Adaro Adaro

SIS

JPI

MSW

SDM

IBT

Mining license holder

Mining and hauling contractor

Conveyor System

Mine mouth power plant

Barging and ship loading

Dredging Barito River mouth and water toll contractor

Coal storage, blending, loading terminal and fuel facility

Coal export marketing and trading

*) As of May 2010, Adaro received Government approval for 25% stake for IndoMet Coal Project

Each subsidiary is positioned to be an independent profit centre enabling the Group to have a reliable and competitive coal supply chain

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Balikpapan

East Kalimantan Central Kalimantan

Tanjung Kelanis River Barge Terminal

PT Adaro Indonesia

River

Barito

Banjarmasin

South Kalimantan

Taboneo Anchorage

Domestic and Direct Barging

South Pulau Laut Coal Terminal Coal and Fuel Storage Handling Port

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PT Adaro Indonesia - Mining

Adaro's main coal mining subsidiary

Company Overview

Largest single-mine coal producer in the southern hemisphere by production volume - Coal type : Envirocoal, sub-bituminous, medium calorific value, ultra-low pollutants - Resources: 3,484 Mt (JORC Compliant) - Location: Tabalong and Balangan districts, South Kalimantan One of the top five thermal coal exporters globally based on tonnes shipped One of the lowest cost coal producers Geographically diverse customer mix, primarily blue-chip power utilities

1H10: Production Volume Coal Sales Overburden Removal Planned Strip Ratio Mining Equipment capacity

: 21.6 Mt (20% increase compared to 1H09) : 21.59 Mt (22% increase compared to 1H09) : 106.7 Mbcm (12% increase compared to 1H09) : 5.5x (1H09: 5.0x) : 50 Mt per annum

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PT Adaro Indonesia - Mining

Coal Reserves Coal Mining Coal Hauling Coal Crushing Coal Barging Coal Loading

Company Overview

Coal Port

Tutupan Deposit

Wara Deposit

Reserves (Mt) Proven Probable Total Deposit: Tutupan Wara Total 418 212 630 167 92 259 585 304 889

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Largest single site coal mine in the southern hemisphere

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PT Saptaindra Sejati ("SIS") ­ Mining Contracting

Adaro's mining operations are conducted by five mining contractors including SIS a wholly-owned subsidiary of Adaro Energy

Company Overview

SIS is subject to a multi-year contract with Adaro Indonesia to undertake overburden removal and transportation, coal extraction and transportation and partial mine reclamation activities SIS Customers 1H10: Total Coal Getting: 9.32 Mt Customers Location - 30% increase compared to 1H09 PT Adaro Tanjung Tabalong, - 69% of SIS's volume was Adaro's coal Indonesia South Kalimantan - SIS handled 30% of Adaro's coal volumes PT Berau Coal East Kalimantan

PT Borneo Indobara Sembaban, South Kalimantan Sanga-sanga, East Kalimantan Paringguling, South Kalimantan Muara Komam, East Kalimantan

Contracted Volume (Mt)

50 9.9 10.0 6.8 4.4 2.9

Duration

2009-2014 Valid until 2013 2009 - 2014 2007 - 2012 2005 - 2012 2009 - 2013

Total Overburden Removal: 60.81 Mbcm - 11% increase compared to 1H09 - 52% of SIS's volume was Adaro's OB - SIS handled 30% of Adaro's OB

PT Indomining PT Sumber Kurnia Buana PT Tunas Muda Jaya

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PT Saptaindra Sejati ("SIS") ­ Mining Contracting

Coal Reserves Coal Mining Coal Hauling Coal Crushing Coal Barging Coal Loading

Company Overview

Coal Port

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Coal is loaded on the trailer by backhoes or wheel-loaders from run-of-mine stockpiles

Company Overview

1H10 Contractors: PAMA 38% SIS 30% BUMA 18% RAJ 12% RMI 2%

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Dedicated Coal Hauling Road

Coal Reserves Coal Mining Coal Hauling Coal Crushing Coal Barging Coal Loading

Company Overview

Coal Port

Hauling Equipment Capacity: 60 million tonnes Hauling Road Capacity: 80 million tonnes Hauling Road Distance: 80 km Hauling Road Vehicles: 200 road trains

Balikpapan

East Kalimantan Central Kalimantan

Tanjung

Barito

Banjarmasin

River

Kelanis River Barge Terminal

South Kalimantan

Taboneo Anchorage

Domestic and Direct Barging

South Pulau Laut Coal Terminal

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The hauling road is 100% owned by Adaro Energy 20

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Kelanis: One of World's Largest Inland Bulk Terminals

Coal Reserves Coal Mining Coal Hauling Coal Crushing Coal Barging Coal Loading

Company Overview

Coal Port

Crushing Capacity: - 6 crushers with total capacity of 7,500 tph - Recent installation of additional crushing system increased capacity to 55 Mt Stockpiling Capacity: 2 stockpiles with capacity of 250,000t Barge Loading Capacity: 2 load out conveyor systems each rated at 5,000 tph

Balikpapan

East Kalimantan Central Kalimantan

Tanjung

Barito

Banjarmasin

River

Kelanis River Barge Terminal

South Kalimantan

Taboneo Anchorage

Domestic and Direct Barging

South Pulau Laut Coal Terminal

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Crushing, stockpiling and barge loading facilities at Kelanis can easily be upgraded

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PT Maritim Barito Perkasa ("MBP") ­ Barging

Company Overview

MBP, PT Harapan Bahtera Internusa ("HBI"), and Orchard Maritime Logistics Pte. Ltd ("OML"), all majority owned by Adaro Energy MBP focuses on services for Adaro Indonesia HBI handles non Adaro business OML provides barging services for customers outside Indonesia MBP owns 16 barges, 18 tugboats and three self propelled barges (SPB), as well as 4 floating cranes As part of Adaro Energy's cost reduction initiatives, three SPBs each with a 12,000 tonnes capacity were in operation in 2009, a fourth SPB will be delivered in 2010 with a capacity of 15,000dwt. 1H10: Total Coal Transported: 5.83 Mt - 33% increase compared to 1H09 - 91% of MBP's volume was Adaro's coal - MBP handled 25% of Adaro's volumes

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PT Maritim Barito Perkasa ("MBP") ­ Barging

Coal Reserves Coal Mining Coal Hauling

Balikpapan

Company Overview

Coal Crushing

Coal Barging

Coal Loading

Coal Port

East Kalimantan Central Kalimantan

Tanjung

Barito

Banjarmasin

River

Kelanis River Barge Terminal

South Kalimantan

Taboneo Anchorage

Domestic and Direct Barging

South Pulau Laut Coal Terminal

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PT Sarana Daya Mandiri ("SDM") ­ Dredging/Water Tolling

Company Overview

SDM is based in Banjarmasin, South Kalimantan. Adaro owns 51.2% while the remaining is owned by Perusda (Ambapers) Silt was dredged from the river to create a wider and deeper access channel that allows for 24-hour navigation as well as two-way traffic The de-bottlenecking provided by the new channel has significantly improved barging movement along Adaro's coal supply chain Channel Specifications Length : 15,000 m (old channel:14,000 m) Base width : 138 m (old: 60m) Minimum depth at lowest water level : -6 LWS (old: -3 to -4.7 LWS) 1H10: Total Volume Transported: 33.8 Mt - 57% of channel usage was Adaro's coal - 99% of total volume transported on the channel is coal Capacity : 200 Mt per annum (old 60 Mt) Total barge steaming time along the channel: reduced by 3 hours

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PT Sarana Daya Mandiri ("SDM") ­ Dredging/Water Tolling

Coal Reserves Coal Mining Coal Hauling Coal Crushing Coal Barging Coal Loading

Company Overview

Coal Port

Adaro's Innovative Solution to River Bottleneck: - Adaro formed a joint venture, SDM, with central government port authority and South Kalimantan government - SDM hires Van Oord to dredge the river channel, on time and on budget - MaintenanceEast Kalimantan of channel is self-funded Central Kalimantan

Balikpapan Tanjung Kelanis River Barge Terminal

Barito

Banjarmasin

River

South Kalimantan

Taboneo Anchorage

Domestic and Direct Barging

South Pulau Laut Coal Terminal

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Capacity of the Barito River has increased to 200mt per year

Company Overview

Barges waiting at crossing from old channel

Five barges towing Adaro Indonesia's coal passing through new channel

Capacity : 200 Mt per annum (old 60 Mt) Length : 15,000 m (old channel:14,000 m) Base width : 138 m (old: 60m) Min depth : -6 LWS (old: -3 to -4.7 LWS)

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PT Maritime Barito Perkasa ("MBP") ­ Shiploading

Coal Reserves Coal Mining Coal Hauling Coal Crushing Coal Barging Coal Loading

Company Overview

Coal Port

Vessels with their own gear and grabs at the Taboneo anchorage

MBP's floating cranes

Balikpapan

- 43% increase compared to 1H09 - 100% of MBP's volume was Adaro's coal

Taboneo Anchorage Domestic and Direct Barging

Barito

River

1H10: Total Coal Loaded: 6.62 Mt

East Kalimantan Central Kalimantan

Tanjung Kelanis River Barge Terminal

Banjarmasin

South Kalimantan

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South Pulau Laut Coal Terminal

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PT Indonesia Bulk Terminal ("IBT") ­ Coal Terminal Services

Company Overview

Established in 1990 to develop, operate and manage a public port with dry terminal facilities which then expanded to operate liquid bulk terminal at Pulau Laut Designed and built to provide premium coal blending and handling terminal services, and now, with Shell, fuel terminal services Depth of the harbor allows vessels of up to 85,000 tonnes to berth and load Can load customers ships at rates of 35,000 tonnes of coal per day Operates its facility 24 hours a day, 359 days a year, minimizing shipment delays Barge unloading facilities: 2 large berths for 2 barges of up to 15,000 tonnes Customers: Adaro Indonesia and other coal producers in Kalimantan 1H10: Total Coal shipped : 3 Mt (64% of which was Adaro's coal) Number of vessels loaded : 48 Stockpile : up to 800,000 tones of coal Capacity : 12 Mt coal per annum, fuel tank capacity of 80,000 kilolitres

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PT Indonesia Bulk Terminal ("IBT") ­ Coal Terminal Services

Coal Reserves Coal Mining Coal Hauling Coal Crushing Coal Barging Coal Loading

Company Overview

Coal Port

Shell's fuel terminal recently constructed at IBT's facility

Balikpapan

East Kalimantan Central Kalimantan

Tanjung

Barito

Banjarmasin

River

Kelanis River Barge Terminal

South Kalimantan

Taboneo Anchorage

Domestic and Direct Barging

South Pulau Laut Coal Terminal

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Coaltrade Services International Pte Ltd ­ Marketing

Company Overview

Coaltrade was established in 2000 in Singapore to participate in the global trade of thermal coal Principal activities are trading of thermal coal, acting as agents for both coal producers and potentially consumers Provides technical and coal combustion consulting services and providing shipping and logistics consulting services in relation to its trading activities

1H10: Total 3rd party coal sales of 0.16 Mt

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Vertically Integrated from Pit to Port

Strategy is centred on improving control and efficiency of the supply chain

Kelanis River Terminal, Crushing Plant, 55 Mt Hauling Road 80 km, 60 Mt Strong control Medium control Controlling stake held by the Group PT Adaro Indonesia Coal Concession Owner

Company Overview

MBP Coal Barging, 250 km

PT Sapta Indra Sejati Mining Contractors, 16 Mt

Taboneo Shiploading Activities

PT Sarana Daya Mandiri Dredging & Water Toll, 200 Mt Local customers PT Indonesia Bulk Terminal Coal Terminal 12 Mt

Vertical integration allows for control over each critical piece of the supply chain

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Quick Update Company Overview Key Investment Highlights

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Key Investment Highlights

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Robust industry prospects Good track record of growth, large reserves to support continued growth Among the world's largest and lowest cost, vertically integrated producers Highly differentiated product ­ EnvirocoalTM Diversified and loyal customer base and high earnings visibility Consistently improving financial profile since LBO Committed to corporate social responsibility and excellent safety record Reputable and supportive shareholders and experienced management team Growth and value creation set to continue

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8

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Robust Industry Prospects 2010 General Outlook

Key Investment Highlights

· Surging thermal coal imports into China, strong Indian demand, forecast

power generating capacity increases in Vietnam, Indonesia and other parts of Asia project a strong demand for thermal coal in the foreseeable future.

· Strong long term demand-additional new coal fired power plants of 579

Gigawatts expected in next 20 years in Asia, predominantly in China, Vietnam, India and Indonesia. These projects will require an additional 1.7 billion tonnes of coal per year.

· Supply constraints in the thermal coal market remain:

­ Limited

availability of working capital for small and medium size coal producers; ­ Increasingly challenging mining conditions; ­ Infrastructure constraints remain in Australia and South Africa

· Weather conditions continue to remain challenging which may hamper

production activities for many Indonesian producers.

· The above scenarios for strong demand and supply constraints point

towards firm pricing probabilities in the34 foreseeable future.

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Robust Industry Prospects 2010 General Outlook (Cont'd)

Richards Bay FOB Average Newcastle FOB Average 2002 25.59 25.27 2003 30.73 26.30 2004 54.34 53.90 2005 46.21 47.35 2006 50.85 49.03 2007 62.77 65.98 2008 120.63 128.83

Key Investment Highlights

2009 64.38 71.89

2010 85.61 94.75

US$/tonne

Source : McCloskey Coal

Coal prices have corrected from the steep rises of early 2008, yet remain at significantly higher levels than all but one of the last 5 years

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1

Robust Industry Prospects 2010 General Outlook (Cont'd)

Key Investment Highlights

In US$

Source: Bloomberg, Global Coal Coal prices have rebounded from its lows a year ago, tracking the increase in Oil prices. Coal prices still remain in the territory of 20-25% of oil on energy equivalent basis

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1

Robust Industry Prospects China's urban population to reach one billion

Key Investment Highlights

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1

Robust Industry Prospects

Key Investment Highlights

Steel intensity per capita grows strongly as a nation industrialises and urbanises

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1

Robust Industry Prospect Electricity and Coal

Electricity Consumption vs GDP/Capita

Key Investment Highlights

Source of Energy for Electricity (in Quadrillion Btu)

India 2007 2035 0.2 1.8 9.5 2.1 3.8 17.4 China 2007 0.5 0.5 27.7 0.6 4.3 33.6 2035 0.5 1.2 72.2 6.2 18.0 98.1 World 2007 10.2 37.3 84.5 27.1 34.8 193.9 2035 8.7 57.8 143.6 47.1 77.3 334.5

18,000

Electricity Consumption (Kwh/Capita)

Liquids

Canada

0.2 0.6 6.6 0.2 1.3 8.9

16,000 14,000 12,000 10,000

Natural Gas Coal Nuclear

US

Renewables Total

Japan

8,000

Russia

Korea France Germany

Source of Energy for Electricity (in MW) - Indonesia

2009 3,882 3,213 10,726 1,775 14,731 34,327

6,000 4,000

China

11% 9% 43%

Hydro Diesel Gas

2,000

India

Thailand Indonesia

Brazil

Geothermal Coal

0 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000

GDP/Capita, at current price (US$) Source: IMF, International Energy Outlook 2010, PLN

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5%

31%

Hydro Diesel Gas Geothermal Coal

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Track Record of Production Growth Continues... CAGR of 11% since LBO

Key Investment Highlights

Another Record Breaking Year ­ Adaro's production crosses 40 million ton mark

2005 - 09 CAGR: 11%

Bali Bomb

45 40 35 30 25 MT 20 15 10 5.5 5 1.0 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1.4 2.4

Tsunami LBO of Adaro

Period 1Q 2Q 1H

Sales in FY09 8.73 9.10 17.83

Sales in FY10 11.46 10.29 21.75

Increase/ Decrease 31% 13% 22%

Start of US Financial Crisis

40.6 38.5 34.4 36.1

Start of Asian Financial Crisis

Law 41 on Forestry Passed

24.3 20.8 22.5

26.7

Adaro begins commercial operations

8.6 9.4

17.7 15.5 13.6 10.9

Law 22 and Law 25 of 1999 on Regional Autonomy

Period of Decentralization/Regional Autonomy

Despite a difficult first half in 2009 due to global financial meltdown and seasonally wet conditions; Adaro recovered sales in the second half by a significant margin to register a y/y growth of 0.8% 40

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2

Large Reserve Base

Adaro Indonesia's reserves growth

(Mt)

Key Investment Highlights

Reserves and resources evolution

(Mt)

3,483 2,803 2,841

3,483 2,803 2,841 1,920

3,483

+618

889

2,368

3,483

448

(177)

2005

938 448

2005

2005-09 Production

Addition

2009

930

2008 Resources

889

2009

414

2006 Reserves 2007

Through ongoing exploration, Adaro expects to be able to grow its reserve base

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One of the Largest Coal Producers in Indonesia

PT Adaro is the Largest Single-Mine Coal Producer in Southern Hemisphere

Top 9 producers have on average being producing 85% of the coal produced in Indonesia. On a single company basis and on equivalent production basis, Adaro Indonesia is the largest coal producer in 2008 and 2009.

Source : Indonesia Coal & Power, January 2010

Demand for Envirocoal is expected to continue to increase. Adaro's market position is expected to benefit from continued regulation of SO2 and NO emissions

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And also Among the World's Largest

Key Investment Highlights

Global top 5 thermal coal exporters (2008)

(% market share)

7.7% 5.4% 4.8% 4.5% 4.4%

Xstrata

Source: Company filings

KPC

Anglo American

BHP

Adaro Indonesia

Indonesian top 5 domestic suppliers (2008)

20.1% 16.5% 11.7% 10.3% 7.0%

Adaro Indonesia

Bukit Asam

Kideco

Berau

KPC

Source: Indonesian Department of Mines and Energy, ICP Estimates

Demand for Envirocoal is expected to continue to increase. Adaro Indonesia's market position is expected to benefit from continued regulation of SO2 and NO emissions

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3

Among Lowest Cost Integrated Producers

Low Cost Producer

Key Investment Highlights

Mine characteristics, operating strategy and location enable Adaro to produce coal at attractive cash cost levels.

2005 Stripping Ratio 3.3 2006 3.57 2007 4.25 2008 4.25 2009 5

Adaro Energy's Cash Cost (ex. Royalty) (US$ /T) 35

Increase due to higher stripping ratio Increase due to higher fuel prices; Government stopped the diesel fuel subsidy in 2007

30.3 29.7

+2% +25%

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25

23.7 21.6 20.2

+7% +10%

20

15

10

2005

2006

2007

2008

2009

FY09 cash cost increased slightly due to higher planned strip ratio of 5.0 and longer hauling distance for overburden

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Cost Reduction Initiatives

Key Investment Highlights

Control of a part of each critical part of the coal supply chain Control of barging and ship loading company will help manage shipments better and minimize demurrage costs Centralized fuel procurement and selective fuel price hedging to help control and minimize fuel costs Mine-mouth power plant to replace 20MW of diesel-fired electricity consumed by the mine, reducing the electricity expense and Adaro's dependence on oil Conveyor system to be powered by mine mouth power plant, to reduce hauling costs Installation of GPS and ground radar on trucking fleet to avoid bottlenecks Use of bigger and faster self-propelled barges Dredging the new channel at the mouth of Barito river, which has increased capacity and reduced the cost Greater use of the Taboneo anchorage for Adaro's shiploading activities, which decreases barging distances

McCloskey has estimated that Adaro Indonesia's 2008 FOB cash cost per tonne is ranked in the lowest quartile of producers of seaborne thermal coal and the 2009 cash cost increased 2%.

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Highly Differentiated Product ­

EnvirocoalTM

Key Investment Highlights

Ash Content 1%-2.5% (adb)

ASH % (adb) Nitrogen % (daf) Total Sulfur % (adb)

Lowest ash content among coals produced for global export trade, providing consumers with significant cost savings Blending Envirocoal with higher ash coal reduces the on-costs associated with ash disposal Reduces deposition rates in boilers improving thermal efficiency and reducing maintenance costs

Coal brands within global export trade 25

20 15 10 5 0

3.0

Envirocoal is amongst the 10 lowest coals by nitrogen content

2.5 2.0 1.5 1.0 0.5 0.0

Nitrogen Content 0.9% (daf)

Enables consumers to reduce the costs associated with removing nitrous oxides from the flue gases Results in more net power for sale and lower electricity production cost, which is particularly important in the US

Sulfur Content 0.1% (adb)

Regulation of emissions of sulfur oxides has required some consumers to install flue gas desulfurization equipment or to reduce the sulfur content in the blend of coals Envirocoal's ultra low sulfur content enables consumers to meet regulated standards and delay capital expenditure, reducing the cost of plant operation

2.5 2.0 1.5 1.0 0.5 0.0

Source:

Adaro Energy Annual report

Envirocoal is one of the most environmentally friendly coals with extremely low ash, nitrogen and sulfur content

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Global Leader in Growing International Market of `Environmental Coal'

Spain

Puentes and Meirama power stations converted to use Envirocoal to meet strict EEC emission regulations

Key Investment Highlights

Around 80% of customers by volume in FY09 were power generation companies

United Kingdom

Sales to power plants switching to low sulfur, low NOX emission coals to meet strict environmental requirements

Japan

Allows power stations to save substantially on ash disposal costs

East Coast U.S.

A power station uses pure Envirocoal as an alternative to spending on advanced emissions control equipment

Hong Kong

Use of Envirocoal at its power station has allowed Castle Peak Power to meet emission requirements of the Government

New Zealand Italy

Brindisi North station was closed due to high emissions. The government allowed it to reopen but only if it uses Envirocoal Exports to Huntly power station due to severe restrictions on ash disposal

India

Tata Power uses Envirocoal to limit sulfur emissions from its Mumbai power station

Malaysia

Envirocoal was the design coal for Indonesia Manjung Power Station and is Distributes coal to multiple power used to meet strict emission stations in Indonesia standards

Envirocoal has proven global acceptance

47

5

Diversified and Loyal Customer Base and High Earnings Visibility

13% 7%

Pow er generation Cement Other

Key Investment Highlights

Customer type by volume (FY09)

Loyal long term customers ­ Substantially all have relationship of > 5 years ­ ~50% have relationship of > 9 years Average length of coal supply agreements is 5 years Substantially all contracts have annual price negotiation ­ 100% contracts are priced annually ­ ~65% fixed price

80%

Geographical breakdown of customers (FY09)

Others 12%

Korea 6% Malaysia 4% Taiw an 6% China 8% Japan 10%

Indonesia 23%

Hongkong 8% Spain 9% America 5% India 9%

­ ~35% are indexed

During its production track record of 18 years, Adaro has cultivated long-term, diversified and loyal customer base

48

6

Strong Financial Performance

Net debt / equity (x) (As at end of)

GR A CA A-09 2006

11,593

Key Investment Highlights

Net Sales (Rp bn) (FYE 31 December)

3% : 40.3

18,093 26,938

2.26x

9,748

0.54x

n.m.

2006

2006 2007 2008 2009

(1)

0.26x 2009

2007

2008

(1) In 2006, Adaro Energy had negative equity

EBITDA (Rp bn) and EBITDA margin (%) (FYE 31 December) 21%

22% 25% 41% 11,017

2,599 2,088

4,455

9% CAGR: 74.0 2006A-09A

2006

2007

EBITDA

2008

EBITDA m argin

2009

Track record of strong financial performance and margin improvement since LBO

49

6

Consistently Improving Financial Profile since LBO

Key Investment Highlights

Adaro has a track record of no default, rescheduling of debts nor breaching its financial covenants

LBO: June 2005 December 2005 March 2007

US$190 million Interest: LIBOR+200 bps 5 year US$400 million Interest: 8.5% US$265 million Interest: 11.25% DSCR 1.59(1) Net Debt to EBITDA 2.53x DSCR 1.93(1) Net Debt to EBITDA 2.43x DSCR 4.97(1) Net Debt to EBITDA 1.1x DSCR (E) ~ 3.7x Net Debt to EBITDA ~ 0.3x FCCR ~10x Fully refinanced NA

December 2007

December 2008

December 2009

Bank Debt

US$570 million Interest: LIBOR+450 bps NA

US$200 million Interest: LIBOR+325 bps 5 year US$400 million Interest: 8.5%

US$750 million Interest: LIBOR+120 bps Fully refinanced

US$680 million Interest: LIBOR+120 bps NA

US$570million Interest: LIBOR+120 bps

Bonds

10 year -US$ 800 Million Interest: 7.625% NA

Mezzanine

US$353 million Interest: 17%

US$300 million Interest: 17%

DSCR 0.79 Net Debt to EBITDA 5.27x

DSCR 0.95 Net Debt to EBITDA 4.45x

Key Ratios1)

(1)

Only for Adaro Indonesia, Indonesia Bulk Terminal, Coaltrade

Adaro Indonesia is one of few Indonesian companies to have called bonds and paid a substantial premium ­ part of prudent financial management to reduce financing costs

50

6

Good Access To Capital

· · · · · · · ·

Key Investment Highlights

US$800 million 10 year, non call 5, Reg S/144A, Guaranteed Senior Notes

7.625% coupon, semi-annual (431bp over 10 year Treasury) No restriction on dividends Quasi-investment-grade covenants If one notch rating upgrade to investment grade, incurrence ratios removed (currently rated Ba1 and BB+) Issued to increase financial strength Libor + 200 bps To be used as a standby facility Issued to ensure financial liquidity

US$500 million 5 year, Amortizing Revolving Credit Facility

Group Lenders

Large group of relationship banks and bond holders continue to be very supportive of Adaro

51

6

Strong Capital Structure

Facility Security

Outstanding as of May 2010 (US$ Million)

Key Investment Highlights

Maturity

PT Adaro Indonesia Facilities

Guaranteed Senior Notes US$500 Million Amortizing Revolving Credit Facility US$750 Million facility: - Revolver - Term Loan US$40 Million multicurrency Revolving Facility Unsecured, Guaranteed by Company Unsecured, Guaranteed by Company Unsecured, Guaranteed by Company Unsecured, Guaranteed by Company (Coaltrade joint borrower) 800 Undrawn 100 425 Undrawn October 2019 October 2014 December 2010 November 2012 March 2012

SIS

US$300 Million Term Loan Leases Secured, Guaranteed by Company Secured by the leased assets 207 76 June 2013 Various, until 2013

SDM

US$15 Million facility Term Loan Secured, Guaranteed by Company 15 December 2014

Adaro Energy's average cost of debt is below 5% and 1Q10 net debt to equity was 0.41x

52

7

Committed to Corporate Social Responsibility

Key Investment Highlights

Currently Adaro Indonesia and its sub-contractors employ over 15,000 personnel, in excess of 70% are of Kalimantan origin. Operating without use of any separate camp since operations began in 1992, Adaro endeavors to behave as a good corporate citizen

Adaro's has operated a mobile cataract project since 2003 in conjunction with the Government's rural health services and to date the program has performed more than 3,600 operations

53

7

CSR Commitment has been Recognised

Key Investment Highlights

Gold Category in Indonesian Corporate Social Responsibility Awards 2008

Presented by Ministry of Social Affairs, Republic of Indonesia

Indonesian Corporate Social Responsibility Award 2008

First rank for Social and second rank for Environment and third rank for Economic Presented by Minister of Social Affairs

Proper Award for the year 2006-2008

Adaro Indonesia received the green level PROPER award for environmental rehabilitation excellence. The only Indonesian mining company to receive this award for two consecutive times

Primaniyarta Award 2007

Best performing exporters, presented by National Export Development Agency

Social Empowerment Award 2007

Presented by Coordinating Minister for People's Welfare of the Republic of Indonesia

Largest Taxpayer-2008

Presented by the Tax Office

54

7

Excellent Safety Record

Key Investment Highlights

45 40,6 40 35 Production (Mt) 30 25 20 15 26,7 34,4 36,1 38,5

1,4 1,2 1 0,8 0,6 0,4

10 5 1 0 2005 2006 2007 2008 2009 0,2 2 2 0 0 0

Production Fatal LTIFR *

* LTIFR is the Loss Time Injury Frequency Rate ­ it measures the number of lost time claims per million hours worked.

55

LTIFR

8

Reputable and Supportive Shareholders, Experienced Management Team

Controlling Shareholders

Key Investment Highlights

· · · · ·

Edwin Soeryadjaya Teddy Rachmat Boy Garibaldi Thohir Benny Subianto Sandiaga Uno

together hold 63%

Strength of senior management team

More than 120 years of combined industry experience

Combined 60 years with the Group

Average 10 years with the Group

Key achievements of management team Grown the Group to become the largest single-site coal producer in the southern hemisphere and amongst the largest thermal coal exporters in the world Created vertically integrated low cost coal producer Consistent production growth at 11.6% CAGR over the last 10 years Increased reserves by ~600 Mt in the last three years Focused on creating shareholder value

Group's transformation from LBO to a public company with strong capital structure and low leverage is one of the most successful LBO stories

56

9

Growth and value creation set to continue

Background

Mine mouth power plants planned to be set up by MSW to support future power requirement for conveyor systems

Key Investment Highlights

Current status

Construction work in progress. Appx 28% of work completed for power plants Progress at equipment suppliers end is ahead of schedule Funding arranged through bond offering ­ long term fund availability

Ongoing

Target completion

2011-2012

Project costs

US$400m

Lower Costs: Power Plants & Conveyor Systems

The plants will use Wara Coal Conveyor systems will provide an alternative mode of transportation and to reduce operating costs compared to trucking from mine to Kelanis

Expansion of barging and crane fleet

2010-2014

US$40m

Add Capacity: Barging Shiploading

Add Capacity: Mining Equipment

Purchase of mining equipments to compliment the existing fleet of equipment of SIS

Ongoing

2010-2014

US$300m (maintenance) and US$430 (additional)

IBT Fuel Terminal

IBT and Shell to build/operate a fuel facility at IBT's port To support traffic growth at IBT's port and increase the income stream coming from liquid bulk jetty operations

Complete

2010

US$40m (funded largely by Shell)

These infrastructure developments are key to improve the efficiency and integration of the coal supply chain

57

9

Projects Focus

Key Investment Highlights

New Crushing Plant at Kelanis The new 4 Fuel Storage Facilities with total capacity of 80 kilolitres at IBT

The first Adaro's fuel barge berthing at IBT Terminal Ongoing 2X30MW mine- mouth power plant project by MSW

58

Key Investment Highlights

1

Robust industry prospects Good track record of growth, large reserves to support continued growth Among the world's largest and lowest cost, vertically integrated producers Highly differentiated product ­ EnvirocoalTM Diversified & loyal customer base and high earnings visibility Consistently improving financial profile since LBO Committed to corporate social responsibility & Excellent Safety Record Reputable and supportive shareholders and experienced management team Growth and value creation set to continue

59

2

3

4

5

6

7

8

9

Building a Trusting Relationship

We hope you will contact our IR department after this meeting to begin an ongoing dialogue towards building an understanding of how we are building a bigger and better Adaro Energy. For more information please contact our Head of IR, Cameron Tough at: [email protected]

60

Thank you

61

Appendices

62

Strong international demand for Adaro's $800 million high-yield bond By Rupert Walker | 19 October 2009 PT Adaro, Indonesia's second biggest coal miner, raises $800 million through the sale of 10-year notes and pays just 7.75% thanks to strong support from global high-yield funds. PT Adaro, Indonesia's second biggest coal miner, raised $800 million in a blowout 10-year high-yield bond issue at the end of last week. The company priced the deal with a 7.75% yield in the early hours of Friday morning Hong Kong time, having launched the marketing process on October 5. The transaction was more than seven times subscribed, with orders from 262 accounts amounting to $5.75 billion, according to sources familiar with the transaction. However, as always, it's unclear how many orders and for what size were at the final price. Initial marketing guidance had been set at a yield of 8%. Nevertheless, the launch clearly came at a propitious time, with international investors pouring cash into high-yield funds. Compared with recent issues by mining companies in the US (Peabody), Australia (Fremont) and Latin America (CSN), Adaro's bonds looked attractive. Investors have also become less fearful of Indonesia's corporate and investment environment. The success of a transaction by a commodity exporter might suggest, too, that money managers are more confident that a global economic recovery is, if not imminent, at least more likely than catastrophe. Last month, Chinese property developer Country Garden emphatically re-opened the Asian high-yield market with a $300 million (later increased by a further $75 million) five-year bond that pays an 11.75% coupon, yet is rated just one notch lower than Adaro at Ba2/BB. Credit spreads on non-investment grade (below BBB- and Baa3) bonds have narrowed more than 1,000 basis points so far this year. And despite a widening last week by US and European high-yield indices in the wake of poor results from Bank of America Merrill Lynch, the momentum is still strong. Asia-based analysts are also increasingly arguing that lower default rates and the region's stronger economic recovery means that the liquidity premium normally paid by Asian high-yield companies should be eliminated.

63

Strong international demand for Adaro's $800 million high-yield bond By Rupert Walker | 19 October 2009 [CONTINUED] One Hong Kong-based credit analyst said Adaro's deal was "not especially cheap by rating", but that, "the market seems to be pricing for perfection and the search for yield continues, which tends to defy gravity. Momentum for the entire Asian credit universe has recently been very strong, mostly driven by Western accounts". Asian accounts were only allocated 26% of the paper, while eager US and European investors bought 38% and 35% respectively. Funds, mostly real money portfolio managers, but including a smattering of hedge funds, took 68% of the deal, private banks were given 14% to distribute to their rich yield-hungry clients, commercial banks bought 10% and insurance companies the remaining 8%. The issue, which is non-callable for the first five years, pays a semi-annual coupon of 7.625%, and was re-offered at 99.141 to yield 7.75% to a maturity date of October 22, 2019. That translated into a spread of 430.7bp over the yield of the 10-year US Treasury benchmark. Adaro's bonds traded as high as 101 in the late afternoon on Friday. The issuing vehicle is PT Adaro Indonesia, wholly owned by PT Adaro Energy which is acting as guarantor for the senior notes. Adaro Energy is rated Ba1 by Moody's and the equivalent BB+ by Fitch Ratings. The net proceeds will be used for capital expenditure and general corporate purposes. Credit Suisse, DBS Bank and UBS were the joint bookrunners, while Oversea-Chinese Banking Corporation (OCBC) acted as a lead manager for the Rule 144A, Reg-S issue, which has approval in principle to be listed on the Singapore Exchange. The deal can claim several bragging rights: it is the first ever 10-year US dollar private sector corporate bond out of Indonesia, as well as the country's largest 10-year dollar corporate, including state-backed deals. It is also the biggest Asian high-yield corporate bond launch since India's Vedanta Resources raised $1.25 billion in June 2008.

64

Strong international demand for Adaro's $800 million high-yield bond By Rupert Walker | 19 October 2009 [CONTINUED] The Hong Kong analyst conceded the price was fair on the basis of a near 250bp yield premium over the Indonesia 2019 sovereign issue, which compares with spread pick-up of just 150bp paid by state-owned electricity company PLN in August. His point was that "PLN is a much weaker standalone credit versus Adaro, and only benefits because of its quasi-sovereign status". Adaro is one of the biggest single-site coal producers in the southern hemisphere and one of the world's largest sub-bituminous coal companies. The company is a low-cost producer with a long concession life and its customers are mainly large utilities with excellent payment records. It exports around 77% of its product. Separately on Friday, Indonesia's energy and mining ministry said it expects coal output to rise about 9% to 250 million tonnes in 2010 and that there should be sufficient supply for exports to remain above a planned cap of 150 million tonnes a year. Moody's wrote in a note on October 2, that "Adaro's operating and financial profile has shown consistent improvement in the last few years" helped by improved efficiencies and cost reductions. Adaro's financial metrics are also "strong for the rating level".

65

NEWS RELEASE FROM BHP BILLITON Release Time IMMEDIATE Date 31 March 2010

BHP BILLITON ENTERS INTO A JOINT VENTURE FOR ITS INDONESIAN COAL PROJECT (MARUWAI) BHP Billiton has today announced it has entered into binding agreements to create a new joint venture for its Indonesian Coal Project (ICP) with a subsidiary of PT Adaro Energy TBK (Adaro), which has agreed to acquire a 25 per cent interest in the ICP joint venture. BHP Billiton holds the remaining 75 per cent. The ICP covers seven Coal Contracts of Work (CCoWs) located in East and Central Kalimantan in Indonesia. Undeveloped metallurgical and thermal Coal Resources are estimated at 774 million tonnes. Adaro is Indonesia's second largest thermal coal producer and has operations near the ICP. BHP Billiton President Metallurgical Coal, Hubie van Dalsen, said, "These agreements with Adaro provide a strong local partner to ensure the successful development of our world class metallurgical coal interests in Indonesia. As we progress development, we will continue our strong commitment to the protection of the region's outstanding biodiversity." Completion of the transaction is subject to approvals from the Indonesian Government. Please refer to the attached Coal Resource statement. Further information on BHP Billiton can be found on our Internet site: www.bhpbilliton.com

66

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