Berau Coal (Indonesia) ¡V On 11 June 2009, Strike announcedthe...

Berau Coal (Indonesia) ¡V On 11 June 2009, Strike announced
the completion of a feasibility study on the development of
an open-cut contract mining operation with production
scaling up from 1.5 Mtpa to 3 Mtpa.

The study has confirmed that the Berau Project has the potential to generate an annual operating surplus of approximately US$33m, with:

„h total capital cost of approximately US$19m and
average operating costs of approximately US$41 per
tonne; and

„h a run of mine coal product of medium calorific value
of 5,400-5,600 kcal/kg GAR with low sulphur - 0.66%,
as received (AR); ash - 7.3%, AR and total moisture -
16.6%, AR.

Strike has executed Heads of Agreement with two customers
- CNBM International Corporation (CNBM) of China and
Formosa Plastics Group (FPG) of Taiwan. These agreements
provide for the sale of an aggregate 2.4 Mt of coal over a two year period and are each subject to execution of a formal agreement.

Strike has commenced a ~6,000m drilling campaign on the
Nyapa East block. 51 holes have so far been drilled for
~5,000m.