Overview of Subsidiaries

PT Mahakam Sumber Jaya

MSJ was established in 1994 and received its third generation Coal Contract of Work ("CCOW") in 2000. MSJ commenced mining exploitation in 2004, and is currently the Company's largest operating mine in terms of production volume. MSJ's current mining operations are located within an average distance of approximately 40 km from the Separi coal processing and barge loading facility and are accessible via dedicated haulage roads that are maintained by MSJ. It utilizes open-cut along strike, strip mining techniques through mining and hauling contractors.

MSJ received certification of ISO 9001:2008; ISO 14001:2004; and OHSAS 18001:2007 for its coal mining operations.

PT Santan Batubara (“SB”)

SB was established in 1998 and entered into its third generation CCOW in the same year. Commercial mining operations commenced at the Separi mine site in the first quarter of 2009. SB applies similar mining methods to MSJ, utilizing open-cut along strike mining techniques. The distance between the current SB mine pit and the barge loading facilities at Separi is approximately 45 km. As SB's mine site is in close proximity to MSJ's operations, it shares the haul road network with MSJ.

However, currently, due to the unconducive coal market, management of SB has temporarily suspended its coal mining activities.

PT Tambang Batubara Harum

TBH was established in 1996. TBH began exploration activities in 1997 and in August 2011 was granted IUP Production Operation. TBH also obtained Borrow Use Permit in November 2011. Commercial mining operations are expected to commence at TBH in 2017, subject to market condition.

PT Karya Usaha Pertiwi (“KUP”)

Harum Energy acquired 50.5% ownership of KUP in January 2013. KUP obtained IUP Production in September 2010 and secured the required Forestry Borrow Use Permit in October 2010. KUP is located adjacent to MSJ and SB and will utilize existing infrastructure. Commercial mining operations are expected to commence at KUP in 2017, subject to market condition.