OBI GOLD PROJECT Project Overview PRIVATE & CONFIDENTIAL December 2012 PT. Eka Samudra NusantaraDisclaimer This presentation was prepared by PT. EKA SAMUDRA NUSANTARA exclusively for the benefit and internal use of PT. EKA (or the “Company”), and should be considered private and confidential, and may not to disclosed with any third party, or used for any other purpose, without prior written permission from PT. EKA. This presentation is incomplete without reference to, and should be viewed solely in conjuction with, the opral provided by PT.EKA. The information in this presentation reflects prevailing conditions and our views as of this date, which are subject to change. In addition, our analyses are not and do not purport to be appraisals of the assets, stock or business of the Company. Even when this presentation contains a kind of appraisal, it should be considered preliminary, suitable only for the purpose described herein and not be disclosed or otherwise used without prior written consent of PT. EKA. The information in this presentation does not take into account the effect of a possible transaction or transactions involving an actual potential change of control, which may have significant valuation and other effects.OBI GOLD PROJECT 1= Highlights * Unique opening to invest in an Indonesian gold mining project in Obi Island, Halmahera, Indonesia * In 2011, the Indonesian Goverment declared moratorium (no issuing of new UP or mining license policy) until an uncertain peroid of time. This project is a golden opportunity to own equity of an Indonesian mine tenement (IUP). « Production and operation license IUP (Izin Usaha Pertambangan Operasi Produksi) valid for a 20 years per period (extendable up to 3 periods) to be issued after completion of exploration work, mining design, and AMDAL approval. * 7,712 ha of mineable tenement, and it is the largest Galena mining lease in Indonesia. « Newcrest's Gosowong project on the main island of Halmahera is approx. 235km due north of Obi Gold Project, curently producing 463,0000z Au & 284,0000z Ag annualy, at acash cost of A$329/oz (Newerest 2011 Annual Report), with other AS1bn invested Along the same mineral arch as Newmont’s Batu Hijau gold/copper mine (approx. 860km SW of Obi), and Freeport’s Grasberg gold mine that is so far the largest gold mine in the world (approx. 830km E of Obi)NILAM Group Companies TEU aac ey LY Pas Ce ULL PTTL TT (L..> 0BIGOLD PROJECT Peed ruc feaev(} Ceeeec aris Lee eee ee ee eeMine Tenement (IUP) Summary Company : PT. Eka Samudra Nusantara (PT. Eka) Exploration License |UP_: 3.A issued in 2010-2018 Area Code : KW 0801 IUP-EKS.PT.ESN Resources : Gold (with associated minerals, silver, copper, iron and galena Location : Obilsland, Halmahera, indonesia Issuing Regent : South Halmahera Issuing Province : North Maluku Area : 7,712 Hectares Estimated potentials* Galena: 200.000t, Au: 100t, Ag: 1.500t, Fe: 5.000.000 Nearest port : 2.5km from the IUP area * Estimates concluded from existing geological studiesProject Location in Indonesia Obi Gold Project is located in Obi Island, North Maluku province in Indonesia. Accesible from the capital city Jakarta, then direct flight to Ternate (available daily), and continue by speed boat to Obi"Map of Indonesia showing the Main Magmatic Ares ‘and Major Gold Deposits Halmahera Arch lies within the Indonesian section of the famous Pacific “Ring of Fire”, and the surrounding islands are home to many of the world’s largest gold mining projects, including Grasberg (East) and Batu Hijau (South West).Mineralisation is an extensive epithermal vein/breccia system, running NNW-SSE across the tenement, only 23% of the strike explored (approx. 2,8km) with multiply porphyry gold-copper target areas, Historical Sampling and Drilling Results ® Tenement was previously held by BHP in the 90s, high grade gold intercepts included 26.258/t, 27.208/t, up to 64.00g/t (10 diamonds drill holes). © Geological finding by Indonesia ministry of energy and natural resources (2007) confirmed that mineralized ored showed very high gold content, up to 1.804g/t, 185g/t, and 79g/t. * Sampling conducted in 2009 revealed average Au content of 11.93g/t up to 38.72g/t respectively, and the latest sampling in 2011 resulted Au content of 28.73g/t. * PT. EKA’s diamond drilling in 2011 yielded high grade Au & Ag content of up to 14.45g/t and 34.8g/t respectively, « Artisanal miners have successfully mined gold withing the tenement for the past 14 years, several tunnels have been excavated along the strike. Tunnels located about 60-130m above sea level with depths ranging from 20-50m. Gold/quartz vein can be found within 5m from the tunnel mouth, galena from 10m, along 2.8km of surveyed area. © Existing tailings pond contain 4-8g/t unrecovered Au, with Ag, Pb and Cu discarded. Artisanal miners are producing 25-30kg of Au per month at 70% purity. * Multiple large quartz veins have been documented by the indonesia Directorate General of Energy and Mineral Resources (disseminated gold).Tenement located on the north shore of Obi Island, near Anggai village. * 2.8km length, with 2km width, of the proposed 12 km mineralized trend has been explored. Au has been mined along the strike corridor by local villagers, proving the abundance of gold resources in the area. Mine Tenement (PT. Eka’s IUP) Location ==== Mineralization vein 10Drill holes within the tenement area 7465 @2599 ot} Ld 43.05 m @ 64.00 gt ze ————— ai! \ |_<%_| jeg \ |_ ano * — SSMA ‘ a h. Sn ‘ \ LS as \ . Mapsare representation only Total of 16 drill holes located within the tenement area. Drilling were conducted by BHO (10 holes) in 1998, and PT. Eka Samudra Nusantara (6 holes) in 2011.Clean And Clear as per ESDM Map 06 December 2012 Mining License Registration Map of Obi Island (Indonesian Mining / Energy and Mineral Resources Department)Clean And Clear as per ESDM Map 06 December 2012 As Indonesian National Program to resolve the overlapping issues, all parties concerned in the overlap are being asked to retreat and be shifted in order to have all “Clean And Clear” status. * Present coordinates of PT. Eka Samudra Nusantara on “Clean And Clear” with good possibility to annex our neighbour ; (4,905ha). reyPT. Eka Samudra Nusantara coordinates in Forestry MapOBI PROJECT — SITE PICTURES 2The Artisanal miners are operating only with simple tools and without any safety equipment. * Despite the limitations, these miners can produce up to 30kg of gold per month Site Pictures - Artisanal Miners- Site Pictures - Conventional Gold Extraction Facilities « From the mine site, the ore is brought down to the extraction facility, where it is crushed manually by workers © The current gold extraction facilities involves the use of mercury, which is hazardous to all workers and the villagers, as well as the environment. * PT. EKA has received full support of the local government to eliminate the use of mercury in gold processing, and to manage the artisanal mining activities in the area hz- Site Pictures - Local Involvement and Socialization © PT. EKA has been involved in the local community development, including the construction of roads, bridge, and other infrastructure. * This local involvement is a part of PT. EKA’s socialization program to obtain local support for the Obi Gold Project. * The connecting road (more than 15 km) between the 3 main villages, built by PT.EKA, is the first and only access road being used at the time being * Since the first year of PT.EKA’s invalvement in Obi, The Company has present real improvement in the local community hs© PT. EKA has conducted geological studies, and diamond drilling as a part of the IUP's exploration activities. * PT. EKA is the only UP holder that has shown real progress in exploration and socialization program. * The project has received full support from the local government and the citizen - Site Pictures - Dwellings and Site Preparations ho* PT. EKA’s processing plant is located approx. 1km from the mine tenement, and the SSMA. # Atotal area of 3 hectares is being prepared for PT. EKA’s processing plant, which includes the plant infrastructure, worker camp, administration office, and warehouse. Dwellings - Site Pictures - and Site Preparations leo- Site Pictures - Drillings and exploration activities # PT.EKA conducted diamond drilling (6 holes) in 2011 * The drilling activities has employed up to 100 ocal workers, for 6 months period. e The result of PT. EKA’s diamond drilling in 2011, has reconfirmed BHP drilling result of the abundance of mineral deposit in the area «The cores from the diamond drilling conducted in 2011 are currently stored at the core warehouse on site lea= THE INDONESIA OPPORTUNITY 3 INDONESIAIndonesia's Sovereign Credit Rating t=) =) Bel) @ TK] Sel STANDARD JLE= bg spoor’s FSi) Fitch Source: Bloomberg * No political uncertainty as the next President The Indonesia Opportunity Indonesia is a renowned market for natural resources extraction, seen as even more attractive than South Africa, Australia and Canada in terms of mineral prospects (PWC) Exposure to the global economic cycle is much less than neighboring Asian economies Currently in a resource expansion phase, similar to Austr and Brazil Third fastest growing economy in Asia after China and India with GDP growth in 2011 to reach 6.4% ( Indonesian Investment Coordinating Board) election is not due until 2014 and the current President has strong parliamentary support Responsible fiscal policies have seen the government debt fall from 83% of GDP in 2001 to below 26% of GDP in 2010, the lowest of all ASEAN countries (Indonesian Investment Coordinating Board) bsa The Indonesia Opportunity (con’t) © Mining law reforms in 2010 have been seen to simplify the mining industry in Indonesia, and also favor foreign ownership of Indonesia’s resources * Foreign Direct Investment (FDI) reached US$16.24 billion in 2010, of which USS 2.2 billion went to the mining sector. It is the second highest amongst all investment sectors inthe country (Indonesian tnvestment Coordinating Board) * Corruption index has improved to the best level in Indonesian history * Continued improvement in economic fundamentals and the resource boom has led to the strengthening of the Rupiah, with expectations of further appreciation « Indonesia has become a leading commodities exporter in a number of resources, including the following: Rubi rT CT World's Home to World's. World's. World's. World's. 2largest 40% of largest © second = second largest exporter the exporter largest largest producer worlds Producer producer resources Source: Ministry of Energy and Mineral Resources, & Ministry of Agriculture leaa Indonesia’s Return of Equity (ROE) * Indonesia’s ROE expected to reach 27.3% in 2011, higher than the BRIC countries, due to favorable industry structure (Macquarie Research, October 2010) * Main drivers of high ROE are rising profitability coming from the commodity and utility Sectors * ROE to remain high over the medium term due to the bottleneck in the infrastructure sector and the oligopolistic nature of Indonesian industry, however ROE should normalize over the next 3 to 5 years, when the infrastructure and efficiency improves as a result of more multinationals competing in the market * Therefore a window of opportunity exists to extract the best possible ROE in the current timeframe before competition for resources heats up Expected Regional ROEs in 2011 30% 5 273% 20% ms 172% 17.0% age, tas 144% 1% . i q i i a 0% Indonesia nia_-—Thalland_Philppines’ Hong Kong/ Malaysia ‘Tatwen Singapore China Source: Macquarie Research, October 2010 besTHE GOLD OUTLOOK 4a GOLD OUTLOOK Gold is indestructible and not consumed in the way other commodities are. It is not as influenced by typical supply and demand factors but rather as a means of storing wealth ¢ World investment in gold to rise from 1,605t in 2011 to over 2,000t in 2012 on the back of continued strong investment demand due to loose economic policy, possibility of further monetary policy easing and buying from central banks (RBS Precious Metal Review) # Central bank purchases of gold in 2012 to hit 400t, potentially up to 600t (Thompson GFMS Gold Survey 2012) ¢ Mexico, Russia, Thailand, South Korea and other central banks added to their gold reserves in 2011 ¢ Mine Production is forecast to rise by 3% in 2012, from 2,818t last year e Total cash cost averaged US$643/oz in 2011, a gain of 15% yoy, which was more than offset by rise in the gold price, resulting in hinger cash margins of US$929/oz in 2011, from USS665/oz the previous year # Total holdings of gold through ETFs reached a high of 70 million ounces of gold, more than double the total gold production of the Top 40 in 2010 A 5% shift in US dollar holdings to gold by countries surveyed in IMF's Currency Composition of Official Foreign Exchange Reserves would represent a massive 50 million ‘ounce increase in demand for gold (PWC Mine Report 2011) lezGOLD PRICE CHART LBMA Gold Prices RBS forecasts that average gold price in 2012 to be US$1,750/0z, GEMS expecting price to fluctuate between US$1,530-1,920/0z in 2012, to breach US$2,000/0zin 2013 Jun-07 Dec-O7 un0B Dec 08 Jun-09 Dee-09 unt Dee unt Dec-lt —Price. —30-day Moving Averagean ts CHINA'S APPETITE FOR GOLD « Plenty of investment is coming from Asia and its emerging markets, with people in China facing limited investment alternatives to gold (Philip Klapwijk, Thomson Reuters GFMS Gold Survey 2012) * The only country to register a rise in demand for gold jewelry in 2011 was China, increasing 13% yoy to 496t, a record level, amounting to around a quarter of the global demand for gold jewelry Fears over sovereign debt in the Eurozone, unrest in Middle East and faltering US recovery would force the Federal Reserve into taking additional monetary policy measures, triggering a period of further monetary easing in China, India and Brazil as well (Thomson Reuters GFMS Gold Survey 2012) * People Bank of China encouraged its people to purchase gold as a hedge againts inflation in their Financial Markets Review, March 2011 leo