Legal update, page-8

Of course there is value in pursuing Bayan. White directors travelled to Tabang late 2011 for a KSC board meeting prior the offical ramp up to nameplate capacity of the plant. Further negotiations about more modules have been on the agenda as well. They have been served unexpectedly with the destruction of the company instead . Experienced White mining folks are not used to be treated like simpletons and there is no doubt that they continue to sue Bayan until judgement day. A figure of 800 Mio $ damage claim is rather fantasy but if they get awarded 150-200 Mio $ it is still a big success. As a matter of principle Bayan won´t pay this amount nor are they in a financial position to do so. At the end WEC directors have to decide how to enforce this damage claim, e.g. confiscating Bayans froozen KRL share, confiscating Bayans coal deliveries in overseas destinations, sue the Republic of Indonesia at an international commercial court as a consequence of Bayans refusal to pay the damage claim. Any of these options is tedious and harmful to Bayans business continuity. That gives some hope that the parties find a solution out of court. May be White directors won´t refuse a particiaption at the Pakar coal project with the option deploy BCB there. That could be done via new KRL shares and a board membership for White. Time will tell.