Geo Energy JORC 2017

PREPARATION OF COMBINED JORC REPORT
FOR PT SUNGAI DANAU JAYA AND PT TANAH BUMBU RESOURCES
The Board of Directors of Geo Energy Resources Limited (the “Company”) refers to the
announcement made by the Company on 27 June 2017 (the “Completion Announcement”). Further
to the completion of the TBR Acquisition (as defined in the Completion Announcement), the Company
has commissioned the preparation of a combined JORC report dated 6 July 2017 (the “JORC Report”)
for PT Sungai Danau Jaya (“SDJ”) and PT Tanah Bumbu Resources (“TBR”) by SMG Consultants
based on a combined mining plan.
As at 31 December 2016, the SDJ mineable coal reserves were 39.0 million tonnes. As at 31 May
2016, the TBR mineable coal reserves were 44.4 million tonnes. Based on the JORC Report, the
combined mineable coal reserves of SDJ and TBR have increased to 85.2 million tonnes as at 19
May 2017.
The JORC Report is attached to this announcement.
By Order of the Board

GEO ENERGY RESOURCES LIMITED
Charles Antonny Melati

Executive Chairman
7 July 2017
Combined JORC Reserve Statement
PT Sungai Danau Jaya and
PT Tanah Bumbu Resources
6 th July 2017
Prepared For :
Geo Energy Resources Limited
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Combined JORC Reserve Statement Geo Energy Resources Limited
CONTENTS
Page No.
DISCLAIMER ............................................................................................................. 5
ABBREVIATIONS...................................................................................................... 6
RELEVANT REPORTS AND DOCUMENTS ............................................................. 8
EXECUTIVE SUMMARY ........................................................................................... 9
STATEMENT OF INDEPENDENCE ........................................................................ 13
1. INTRODUCTION ........................................................................................... 13
1.1 SCOPE OF WORK ............................................................................................... 13
1.2 INTERPRETATION ............................................................................................... 14
1.3 APPROACH .......................................................................................................... 14
1.4 RESULTS LIMITATIONS AND STANDARDS ..................................................... 15
1.5 JORC TABLE 1..................................................................................................... 15
2. TENURE ........................................................................................................ 16
2.1 LOCATION AND ACCESS ................................................................................... 16
2.2 MINING TENURE .................................................................................................. 16
2.3 NEIGHBOURS ...................................................................................................... 17
2.4 FORESTRY STATUS ........................................................................................... 20
2.4.1 Izin Pinjam Pakai Kawasan Hutan (IPPKH) .......................................... 20
3. GEOLOGY .................................................................................................... 22
3.1 OVERVIEW ........................................................................................................... 22
3.1.1 Regional and Local Geology.................................................................. 22
3.2 EXPLORATION HISTORY AND DATA ............................................................... 23
3.3 COAL QUALITY.................................................................................................... 23
3.4 GEOLOGICAL MODELLING................................................................................ 24
3.5 OTHER EXPLORATION ACTIVITIES WITHIN THE CONCESSION .................. 24
4. RESOURCES ................................................................................................ 26
4.1 RESOURCE DIMENSIONS .................................................................................. 26
4.2 RESOURCE CLASSIFICATION ........................................................................... 26
4.3 RESOURCE SUMMARY ...................................................................................... 27
5. EXPLOITATION HISTORY AND RECONCILIATION ................................... 27
5.1 EXPLOITATION HISTORY ................................................................................... 27
5.2 CURRENT OPERATION ...................................................................................... 28
5.3 PRODUCTION RECONCILIATION ...................................................................... 30
5.3.1 Sanity Check ............................................................................................ 30
5.3.2 In situ to ROM Conversion Check ......................................................... 31
5.3.3 Quality Check .......................................................................................... 32
5.3.4 Conclusion and Recommendations...................................................... 32
6. DEPOSIT CHARACTERISATION AND MINING METHOD .......................... 32
6.1 DEPOSIT CHARACTERISATION ........................................................................ 32
6.1.1 Introduction ............................................................................................. 32
6.1.2 Waste Horizons ....................................................................................... 33
6.1.3 Coal Structure ......................................................................................... 34
6.1.4 Coal Quality ............................................................................................. 36
6.2 MINING METHODS .............................................................................................. 41
7. ESTIMATION OF COAL RESERVES ........................................................... 41
7.1 DETERMINATION OF OPEN CUT LIMITS.......................................................... 41
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7.2 ORIGINAL AND AS-DUMPED TOPOGRAPHIC SURFACE .............................. 41

7.3 BASE OF WEATHERING ..................................................................................... 41
7.4 FINAL PIT DESIGN .............................................................................................. 42
7.5 DENSITY AND MOISTURE ADJUSTMENT FACTORS ..................................... 42
7.6 IN SITU WASTE AND COAL ............................................................................... 42
7.7 LOSS AND DILUTION PARAMETERS ............................................................... 49
7.8 IN SITU TO ROM CONVERSION METHODOLOGY ........................................... 49
7.8.1 In situ to ROM Conversion ..................................................................... 49
7.9 OTHER MINEABLE COAL INSIDE PIT DESIGN ................................................ 52
8. MINE SCHEDULING ..................................................................................... 54
9. COAL LOGISTICS ........................................................................................ 54
10. INFRASTRUCTURE ...................................................................................... 57
11. MARKETING ASSESSMENT ....................................................................... 61
11.1 SALES PRICE....................................................................................................... 61
11.2 MARKETING REGULATORY ISSUES ................................................................ 62
12. FINANCIAL EVALUATION ........................................................................... 63
12.1 EXCHANGE RATE ............................................................................................... 63
12.2 CAPITAL COST .................................................................................................... 63
12.3 OPERATING COSTS............................................................................................ 64
12.3.1 Unit Rates................................................................................................. 64
12.3.2 Royalties and Government Costs ......................................................... 64
12.4 FINANCIAL SUMMARY ....................................................................................... 64
13. RISKS IN ESTIMATION OF RESERVES ...................................................... 65
13.1 MUTUAL MINING ARRANGEMENT.................................................................... 65
13.2 LEGAL CONSTRAINTS ....................................................................................... 65
13.3 GEOLOGICAL FACTORS .................................................................................... 65
13.4 SURFACE CONSTRAINTS .................................................................................. 65
13.5 SURFACE WATER MANAGEMENT ................................................................... 66
13.6 ENVIRONMENTAL FACTORS ............................................................................ 68
13.7 GEOTECHNICAL FACTORS ............................................................................... 68
13.8 OTHER RISK FACTORS ...................................................................................... 68
13.9 CLASSIFICATION ................................................................................................ 68
14. STATEMENT OF COAL RESERVES ........................................................... 69
14.1 COMPARISON WITH PREVIOUS ESTIMATES .................................................. 74
15. COMPETENT PERSON STATEMENT ......................................................... 76
TABLES
Page No.
Table ES.1 – Summary of Coal Reserves as at 19th May 2017 ................................................ 11

Table ES.2 – Summary of Coal Reserves by Concession ....................................................... 12
Table ES.3 – Estimated Quality of Product Coal ...................................................................... 12
Table 2.1 – Concession Details .................................................................................................. 16
Table 3.1 – SDJ Seam Thickness Summary.............................................................................. 22
Table 3.2 – Coal Quality Summary (Boreholes)........................................................................ 25
Table 4.1 – Resource Estimates as of 19th May 2017 ............................................................... 27
Table 5.1 – Reconciliation Methodology ................................................................................... 30
Table 5.2 – Sanity Check Results ............................................................................................... 31
Table 5.3 – Hauled Coal vs ROM Coal ....................................................................................... 31
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Table 5.4 – Air Dried and Dry Basis Qualities ........................................................................... 32

Table 5.5 – Shipped Qualities vs Geomodel Qualities ............................................................. 32
Table 7.1 – In situ Waste and Coal in Final Pit Design ............................................................ 43
Table 7.2 – Loss and Dilution Parameters ................................................................................ 49
Table 7.3 – Estimate of Tonnes of In-pit Coal ........................................................................... 49
Table 7.4 – Seam by Seam Other Mineable Coal ...................................................................... 52
Table 8.1 – Life of Mine Schedule .............................................................................................. 54
Table 11.1 – The Project’s Coal Prices ...................................................................................... 61
Table 12.1 – Unit Rates ................................................................................................................ 64
Table 14.1 – Summary of Coal Reserves as of 19th May 2017 ................................................ 69
Table 14.2 – Summary of Coal Reserves by Concession ........................................................ 69
Table 14.3 – In situ Coal Reserves as of 19th May 2017 .......................................................... 70
Table 14.4 – Mineable Coal Reserves as of 19th May 2017 ..................................................... 71
Table 14.5 – Run-of Mine Coal Reserves as of 19th May 2017 ............................................... 72
Table 14.6 – Marketable Coal Reserves as of 19th May 2017 ................................................. 73
Table 14.7 – Comparison to Previous Reserve Estimate ........................................................ 74
FIGURES
Page No.
Figure 2.1 – Location Map of the Project .................................................................................. 18

Figure 2.2 – Neighbouring Concessions ................................................................................... 19
Figure 2.3 – Forestry Map and IPPKH areas ............................................................................. 21
Figure 5.1 – Historical Waste Mining Volumes ......................................................................... 27
Figure 5.2 – Historical Coal Mining Quantities ......................................................................... 28
Figure 5.3 – Waste Mining ........................................................................................................... 28
Figure 5.4 – Coal Mining.............................................................................................................. 28
Figure 5.5 – Waste Disposal Area .............................................................................................. 29
Figure 5.6 – Sediment Control .................................................................................................... 29
Figure 5.7 – In situ to ROM Conversion .................................................................................... 31
Figure 6.1 – Interburden Thickness Categories ....................................................................... 33
Figure 6.2 – Coal Thickness Distribution .................................................................................. 34
Figure 6.3 – Seam Gradient Distribution ................................................................................... 35
Figure 6.4 – Spatial Distribution of CV DAF for Seam A5D2 ................................................... 37
Figure 6.5 – Spatial Distribution of CV GAR for Seam A5B2 .................................................. 38
Figure 6.6 – Total Sulphur Distribution ..................................................................................... 39
Figure 6.7 – Volatile Matter Distribution .................................................................................... 39
Figure 6.8 – Ash Distribution ...................................................................................................... 40
Figure 6.9 – As Received Energy (GAR) Distribution .............................................................. 40
Figure 7.1 – Base of Weathering Surface .................................................................................. 42
Figure 7.2 – Final Pit Design ....................................................................................................... 44
Figure 7.3 – Final Pit Depth Contours........................................................................................ 45
Figure 7.4 – Final Pit Design Cross Section A-A’ and B-B’ ..................................................... 46
Figure 7.5 – Final Pit Design Cross Section C-C’ and D-D’ ..................................................... 47
Figure 7.6 – Final Pit Design Cross Section E-E’ ..................................................................... 48
Figure 7.7 – In situ to ROM Procedure ...................................................................................... 50
Figure 7.8 – Seam A5B2 Other Mineable Coal inside the Final Pit Design............................ 53
Figure 9.1 Coal Logistics Diagram ............................................................................................. 55
Figure 9.2 – Map of Infrastructure and Coal Logistics ............................................................ 56
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Figure 10.1 – Mining Contractor’s Office .................................................................................. 57

Figure 10.2 – Mining Contractor’s Workshop ........................................................................... 58
Figure 10.3 – The Owner’s Office and Camp ............................................................................ 58
Figure 10.4 – The Coal Haul Road .............................................................................................. 59
Figure 10.5 – The Port Stockpile ................................................................................................ 59
Figure 10.6 – The STU Port ......................................................................................................... 60
Figure 10.7 – The BIR Port .......................................................................................................... 60
Figure 11.1 – Indonesian Benchmark Sales Prices.................................................................. 61
Figure 12.1 – Fluctuation in Exchange Rate ............................................................................. 63
Figure 13.1 – Surface Water Flow and Catchment ................................................................... 67
Figure 14.1 – Comparison between JORC Pit Designs ........................................................... 75
APPENDICES
Appendix A – Consent Template
Appendix B – Contributors to Report
Appendix C – JORC Table 1
Appendix D – Tenure Document
Appendix E – Recommendation Letter
Appendix F – Resource Polygon
Page No.
Figure F.1 – Seam A5D2 Resource Polygons ........................................................................... 92

Figure F.2 – Seam A5D1 Resource Polygons ........................................................................... 93
Figure F.3 – Seam A5C2 Resource Polygons ........................................................................... 94
Figure F.4 – Seam A5C1 Resource Polygons ........................................................................... 95
Figure F.5 – Seam A5B2 Resource Polygons ........................................................................... 96
Figure F.6 – Seam A5B1 Resource Polygons ........................................................................... 97
Figure F.7 – Seam A5A2 Resource Polygons ........................................................................... 98
Figure F.8 – Seam A5A1 Resource Polygons ........................................................................... 99
Appendix G – Life of Mine Plan Faces
Appendix H – Mutual Mining Agreement
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DISCLAIMER
SMG Consultants (SMGC) has prepared this JORC Reserve Report for the exclusive use of Geo
Energy Resources Limited (GERL) for the sole purpose of assessing the coal mining project
(Project) combining PT Sungai Danau Jaya (SDJ) and PT Tanah Bumbu Resources (TBR) coal
concessions located in the Angsana and Sungai Lohan sub district, Tanah Bumbu regency,
South Kalimantan Province of Indonesia.
The report must be read in light of:
The report distribution and purposes for which it was intended
its reliance upon information provided to SMGC by GERL and others
the limitations and assumptions referred to throughout the report
the limited scope of the report
other relevant issues which are not within the scope of the report
Subject to the limitations referred to above, SMGC has exercised all due care in the preparation
of the report and believes that the information, conclusions, interpretations and recommendations
of the report are both reasonable and reliable based on the assumptions used and the
information provided in the preparation of the report.
SMGC makes no warranty or representation to GERL or third parties (express or implied)
in regard to the report, particularly with consideration to any commercial investment
decision made on the basis of the report
use of the report by the client and third parties shall be at their own risk
the report speaks only as of the date herein and SMGC has no responsibility to update
this report
the report is integral and must be read in its entirety
this Disclaimer must accompany every copy of this report
Extracts or summaries of this report or its conclusions may not be made without the
consent of SMGC with respect to both the form and context in which they appear.
This document, the included figures, tables, appendices or any other inclusions remains the
intellectual property of PT SMGC Consultants. Other than raw data supplied by GERL the data
remains the property of SMGC until all fees and charges related to the acquisition, preparation,
processing and presentation of the report are paid in full.
No third party may use or rely on anything in this report unless that third party signs a reliance
letter in the form required by SMGC (Appendix A). SMGC may also require that the third party
meets and discusses the report with SMGC to ensure that the context and intent is understood.
This report and the contained information must not to be released for any public reporting or fund
raising purposes without the competent person’s consent as to the form and context.
This report has been created using information and data provided by GERL and others. SMGC
accepts no liability for the accuracy or completeness of the information and data provided by
GERL or any other third party.
This review is made using various assumptions, conditions, limitations and abbreviations.
Assumptions are listed on the following page without prejudice to probable omissions.
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Assumptions
All previous work is accepted as being relevant and accurate where independent checks could
not or were not conducted.
All relevant documentation, along with the necessary and available data to make such a review
has been supplied.
Key assumptions, some of which were verified by the client, are accepted as described in the
relevant sections of the report.
Conditions
Statements in this document that contain forward looking statements may be identified by the
use of forward looking words such as "estimates", “plans”, "intends", "expects", "proposes",
"may", "will" and include, without limitation, statements regarding GERL’s plan of business
operations, supply levels and costs, potential contractual arrangements and the delivery of
equipment, receipt of working capital, anticipated revenues, mineral Resource and mineral
Reserve estimates, and projected expenditures.
It must be noted that the ability to develop infrastructure and bring into operation the proposed
mines to achieve the production, cost and revenue targets is dependent on a large number of
factors that are not within the control of SMGC and cannot be fully anticipated by SMGC. These
factors include but are not limited to site mining and geological conditions, variations in market
conditions and costs, performance and capabilities of mining contractors, employees and
management and government legislation and regulations. Any of these factors may substantially
alter the performance of any mining operation.
The appendices referred to throughout and which are attached to this document are considered
to be integral to this report. A copy of the appendices must accompany the report or be provided
to all users of the report.
The conclusions presented in this report are professional opinions based solely upon SMGC’s
interpretations of the information provided by GERL referenced in this report. These conclusions
are intended exclusively for the purposes stated herein. For these reasons, prospective
estimators must make their own assumptions and their own assessments of the subject matter of
this report. Opinions presented in this report apply to the conditions and features as noted in the
documentation, and those reasonably foreseeable. These opinions cannot necessarily apply to
conditions and features that may arise after the date of this report, about which SMGC has had
no prior knowledge nor had the opportunity to evaluate.
ABBREVIATIONS
AC Acid Consuming
ad Air dried
adb Air dried basis
AF Acid Forming
AJE PT Angsana Jaya Energi
AMDAL “Analisis Mengenai Dampak Lingkungan Hidup” which translates to
“Environmental Impact Analysis”
ANDAL “Analisis Dampak Lingkungan Hidup” which translates to “Environmental
Impact Analysis report, which is part of the AMDAL”
APL Area Pengunaan Lain
AS Australian Standards
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ASTER Advanced Spaceborne Thermal Emission and Reflection Radiometer

ar As received
ARD Acid Rock Drainage
ASTM American Society for Testing and Materials
bcm Bank cubic metre
BUMA PT Bukit Makmur Mandiri Utama
capex Capital costs
CCoW Coal Contract of Work
CHPP Coal Handling and Processing Plant
CI Coking Index CV Measure of energy (kilocalorie) per kilogram
CPI Competent Person Indonesia
DPC PT Deli Pratama Coal
ESDM Kementerian Energi Dan Sumber Daya Mineral (Ministry of Energy and
Mineral Resources of Republic Indonesia)
FC Fixed carbon
GAR Gross As Received
ha Hectare
HBA “Harga Batubara Acuan” which translates to “Coal Price Reference”
HE Hydraulic Excavator
HGI Hardgrove Grindability Index
HPK Hutan Produksi Konversi
HPB “Harga Patokan Batubara” which translates to “Coal Standard Price”
hr Hour
IM Inherent Moisture
IPPKH “Izin Pinjam Pakai Kawasan Hutan” which translates to “Permit to Borrow and
Use Forest Area”
IRR Internal Rate of Return
ISP Intermediate stockpile
IUP “Izin Usaha Pertambangan” which translates to “Mining Business License”
JORC The Joint Ore Reserves Committee of The Australasian Institute of Mining and
Metallurgy, Australian Institute of Geoscientists and Minerals Council of
Australia
kcal/kg Unit of energy (kilocalorie) per kilogram
kg Kilogram
km Kilometre
KP “Kuasa Pertambangan” which translates to “Mining Rights”
kt Thousand tonne
kV Kilovolt
l Litre
LAS log ASCII standard
lcm Loose cubic metre
LIDAR Light Detection and Ranging
LOM Life of Mine
m3 Cubic Metre
m Metre
M Million
Mbcm Million bank cubic metres
Mbcmpa Million bank cubic metres per annum
m/s Metres per second
Mt Million tonne
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Mtpa Million tonnes per annum

MW Megawatt
NAF Non Acid Forming
NAR Nett As Received
NPV Net Present Value
Opex Operating costs
pa per annum
PAF Potential Acid Forming
PPE personal protective equipment
RD Relative Density
RKL Rencana Pengelolaan Lingkungan Hidup which translates to “Environmental
Management Plan, which is part of the AMDAL”
RL Relative Level (used to reference the height of landforms above a datum level)
ROM Run-of-Mine
RPL Rencana Pemantauan Lingkungan Hidup which translates to “Environmental
Monitoring Plan, which is part of the AMDAL”
SDJ PT Sungai Danau Jaya
SE Specific Energy
SMGC SMG Consultants
SR Strip ratio (of waste to ROM coal) expressed as bcm per tonne
SOP Standard operating procedure
ST Seam Thickness
t Tonne
TBR PT Tanah Bumbu Resources
tkm Tonne kilometre
TM Total Moisture
TMA PT Toudano Mandiri Abadi
t/m3 Tonne per cubic metre
tpd Tonnes per day
tph Tonne per hour
TS Total Sulphur
TM Total Moisture
VM Volatile Matter
RELEVANT REPORTS AND DOCUMENTS

SMG Consultants, “Combined JORC Resource Statement PT Sungai Danau Jaya and PT
Tanah Bumbu Resources dated June 2017”
Preston, KB and Sanders, RH, “Estimating the In situ Relative Density of Coal”, Australian
Coal Geology, Vol 9, pp 22-26, May 1993
Australian Guidelines for Estimating and Reporting of Inventory Coal, Coal Resources and
Coal Reserves, 2003
ASTM Guidebook of Thermal Coal, APBI-ICMA 2007
“Optimum Design of Open-Pit Mines“, Joint C.O.R.S and O.R.S.A. Conference, Montreal,
May 27-29, 1964
Australasian Code for Reporting of Mineral Resources and Ore Reserves, (The JORC Code),
2012
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EXECUTIVE SUMMARY
BACKGROUND
SMG Consultants (SMGC) was engaged by Geo Energy Resources Limited (GERL) to prepare
an independent estimate of Open Cut Coal Reserves for a coal mining project (Project)
combining PT Sungai Danau Jaya (SDJ) and PT Tanah Bumbu Resources (TBR) coal
concessions located in the Angsana and Sungai Lohan sub district, Tanah Bumbu regency,
South Kalimantan Province of Indonesia. This Statement reports the estimated Coal Reserves
contained within the Project as of the 19th May 2017, the date of the latest topographic survey.
Mining commenced the Project area in December 2015. The Statement has been prepared in
accordance with SMGC’s interpretation of the requirements of the reporting guidelines of the
2012 Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy,
Australasian Institute of Geoscientists and Minerals Council of Australia (“The JORC Code”). The
Project’s engineering department has prepared an execution level of mine plan jointly with the
mining contractor. SMGC has used the mine plan for the purpose of this current Reserve
estimate after performing a review for its validity and reasonableness.
TENURE AND PERMIT
Tenure for The Project is held under two Izin Usaha Pertambangan (IUP) Operasi Produksi
licenses – PT Sungai Danau Jaya (SDJ) and PT Tanah Bumbu Resources (TBR). SDJ and TBR
cover 235.5 and 489.1 ha respectively which equates to a total 724.6 ha. The validity of the SDJ
and TBR mining licenses are till May 2022 and January 2022, respectively.
The southern area of the Project is classified as Areal Penggunaan Lain (Other Purpose) and
thus a “Borrow to Use” Permit (Izin Pinjam Pakai Kawasan Hutan) is not required, but the
northern area (175.63 ha) is classified as Hutan Produksi Konversi (convertible production forest)
and a “Borrow to Use” Permit (Izin Pinjam Pakai Kawasan Hutan) is required from the Forestry
Department before mining operations can take place.
SDJ holds a valid IPPKH through 29th May 2022 for a total area of 68.5 Ha and the current
mining activities are restricted within this area. The residual 16.03 Ha area of HPK inside SDJ
concession requires an additional IPPKH in order to extend mining activities in this area. An
application has been made in this regard and the same application has now been supported by
the Ministry of Energy and Mineral Resources (ESDM) via a letter number 1859/30/DJB/2016
dated 30th December 2016 which states that SDJ can be granted an IPPKH over the said area
under a condition referred as Domestic Marketing Obligation (DMO) as further discussed in the
Section 11.
Approximately 91.1 ha in the Northern part of the TBR concession is classified as HPK and so an
IPPKH is required before mining can commence in this area. At the time of writing this report
SMGC was informed that the IPPKH has been granted and a copy of the same will be soon
collected from the concerned department.
Approximately 227 Ha of the AJE concession comes under the HPK forest category and so an
IPPKH is required for this area before mining activity can take place. SMGC was informed that
an application has been already made in this regard for obtaining the same.
In the opinion of SMGC these come under standard permitting procedures and SMGC does not
see any reason why they cannot be obtained. However, SMGC makes no warranty or
representation to either GERL or third parties (express or implied) in regard to extension or
obtaining any legal permits.
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GEOLOGY AND RESOURCES

A total of 185 boreholes have been drilled in the Project area, and the proposed Resource area
is characterised by the following features:
A small number of coal seams
Thick parent coal seams (> 3 m)
Thick interburden
Shallow dips, average 5°
The main coal bearing lithology within the Project is the Dahor Formation. Coal in this formation
shows a single phase of seam splitting. 12 named parent coal seams have been intersected by
exploration drilling within the Project area. Of these 12 seams, the A5A, A5B, A5C, A5D, A6A
and A6B seams have split into an upper and lower member. In total 18 named seam plies have
been identified and are included in the structural geological model.
This Coal Reserve Estimate uses the most recent geological model and Coal Resources
Estimate which was compiled by Mr. Abdullah Dahlan of SMGC. Mr. Dahlan is a Member of The
Australasian Institute of Mining and Metallurgy and is a full time employee of SMG Consultants.
He has sufficient experience in coal geology and Resource evaluation to qualify as a Competent
Person under the 2012 JORC code.
The total JORC compliant Resource as of 19th May 2017 was estimated to be 97.0 Mt out of
which 78.1 Mt is Measured, 17.2 Mt is indicated and 1.7 Mt is in the Inferred category. Resources
are based upon estimated in situ density values estimated using the Preston-Sanders method. A
minimum thickness cut-off 0.30 metres was set for the area, as it is considered unlikely that any
seam thinner than this would be extracted during future mining
Coal located within the Project area may be characterised as a high moisture, variable ash
content and low energy coal. Ash content is highly dependent on the seam with ash values
ranging from 1.7 % to 24.0 % with a mean of 3.9 % on an air dried basis.
APPROACH
The geological model developed for the Resource estimate and the as-dumped topography
surface as of 19th May 2017 were the key inputs to the Reserve estimation process. Final pit
design was provided by GERL. This was checked and adjusted by SMGC in order to verify
adherence to geotechnical guidelines and use of appropriate mining limits considering
concession boundaries, location of significant infrastructure and communities. Coal Reserves
were then calculated by applying appropriate mining loss and dilution parameters to the
Measured and Indicated Coal Resources inside the final pit design.
The Project’s engineering department has completed an execution level of mine plan and the
same was provided to SMGC for necessary verifications. SMGC has reviewed the plan and
found suitable to support the current Reserve estimation. The schedule targeted 12.8 Mt of
product coal in the first year and an average of 14.8 Mt from 2nd year onwards except for the
final year. The dumping strategy is based on the mutual mining agreements between SDJ and its
eastern neighbour AJE. The mine plan also assumes that AJE will follow the current life of mine
plan so that the backfilling strategy can be successfully implemented to avoid any hindrance to
the smooth mining operation.
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MODIFYING FACTORS
Coal Reserves were estimated by applying appropriate modifying factors and exclusion criteria to
the Coal Resources. Surface water management, infrastructure and the location of the IUP
boundary were used to determine the surface constraints for the mining operation.
The Project is a contractor operated coal mine using excavator and truck mining methods. Waste
material is mined using hydraulic excavators ranging up to 100 tonne class and loaded into
standard rear tipping off-highway trucks and hauled to dumps in close proximity to the pits or to
in-pit dumps where possible. Coal is mined using hydraulic excavators and hauled out of the pit
using rigid body coal trucks approximately 17 km to the Port stockpile. Coal is loaded from the
stockpiles onto barges using a standard mechanical reclaim and barge-loading system. Barges
of 8,000 t capacity can be loaded from the port. Coal is then barged approximately 18 km on the
open ocean to the nearest anchorage.
A set of unit rates were derived by SMGC for the Project based on data supplied by GERL and
supplemented with the SMGC knowledge database. Some of these were based on existing
contracts between the Project and other parties. These unit rates were then compared against
similar operations in Indonesia and are found reasonable and suitable for the purpose of this
study.
RESERVE ESTIMATE
Coal Reserves have been reported in Proved and Probable categories to reflect the reliability of
the estimate. No Inferred Coal Resources are included in the reported Coal Reserves. The Coal
Reserves along with the product qualities are presented from Table ES.1 to Table ES.3 and are
rounded to reflect the accuracy of the estimates. Reserves are inclusive within Resource tonnes
and are simply defined as the economically minable part of a Measured and/or Indicated Mineral
Resource.
Please see Section 7.8 for a detailed understanding of the different Reserve Classes and
procedure to convert In situ coal to Run of Mine (ROM). Marketable Reserves are equivalent to
Run of Mine (ROM) Reserves as no beneficiation of coal product is planned other than crushing.
Coal Reserve estimates are based on an execution level life of mine plan.
Table ES.1 – Summary of Coal Reserves as at 19th May 2017

Proved +
Total Total Incremental Proved Probable
Probable
Reserve Classes Stripping
Waste Coal Coal Coal Coal
Ratio
(Mbcm) (Mt) (bcm/t) (Mt) (Mt) (Mt)
In situ Coal Reserve 290.4 92.0 3.2 71.8 13.6 85.4

Mineable Coal Reserve 291.3 90.9 3.2 71.8 13.4 85.2
Run of Mine Coal Reserve 294.4 85.2 3.5 68.0 12.4 80.4
Total Marketable Coal
294.4 85.2 3.5 68.0 12.4 80.4
Reserve
*This table must be presented with the entire JORC Reserve Statement from which it was obtained.
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Table ES.2 – Summary of Coal Reserves by Concession
Total Total Incremental Proved Probable Proved + Probable

Description Waste Coal Stripping Ratio Coal Coal Coal
SDJ 125.2 37.9 3.3 28.1 9.2 37.3
TBR 169.2 47.3 3.6 40.0 3.2 43.2
Project 294.4 85.2 3.5 68.0 12.4 80.4
Table ES.3 – Estimated Quality of Product Coal

RD TS VM IM TM Ash GAR
Product Type
arb (t/m3) adb (%) adb (%) adb (%) arb (%) adb (%) arb (Kcal/Kg)
All 1.26 0.2 40.2 17.9 35.0 4.1 4,204
The information in this report that relates to Coal Reserves of the Project and is based upon
information compiled by Mr. Joyanta Chakraborty who is a Member of the Australasian Institute
of Mining and Metallurgy. Mr. Chakraborty is employed as a Senior Mining Engineer by SMGC.
He has sufficient experience which is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which he is undertaking to qualify as a Competent Person
as defined in the 2012 Edition of the “Australasian Code for Reporting of Mineral Resources and
Ore Reserves”. This document has been checked as part of SMGC’s peer review process.
RISKS
Mutual Mining Arrangement
This Reserve statement is highly dependent upon the mutual mining and dumping arrangement
between SDJ and its eastern neighbour – PT Angsana Jaya Energi (AJE). This arrangement
allows SDJ to dump a considerable amount of waste into this concession. Additionally it assumes
that AJE will follow the current life of mine plan so that the backfilling strategy can be
successfully implemented to avoid any hindrance to the smooth mining operation.
This mutual understanding is supported by one signed agreement between SDJ and AJE. SMGC
has been given copies of the agreement (Appendix H). Any deviation from this arrangement may
impact on the underlying Life of Mine plan and thus alter the outcome of this current Reserve
Statement.
Additional IPPKH Permits
The current activities of the Project are restricted by the existing IPPKH boundary for a total area
of around 68.5 ha inside the SDJ IUP and there is no legal issue with the same. However, in
order to adhere to the underlying life of mine plan the Project needs to obtain the residual IPPKH
permits on time. All the IPPKH approval processes are currently in advanced stages and SMGC
does not see any issue which prevents the Project from obtaining these approvals. However, the
timing of obtaining this IPPKH will have a direct impact on the current strategy of the underlying
Life of Mine plan and that in turn may alter the outcome of this Reserve statement.
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A-14
STATEMENT OF INDEPENDENCE
This report was prepared on behalf of SMGC by the signatory to this report, assisted by the
subject specialists whose qualifications and experience are set out in Appendix B of this report.
SMG Consultants started business in Australia in the 1960’s as a global geological and mining
software development. SMG Consultants was founded in Indonesia in July 2009 as a base to
serve its client base across Southeast Asia. SMG Consultants, headquartered in Jakarta, is an
independent mining consulting group providing geological, resource evaluation, mining
engineering, Life of Mine Planning, JORC Statements, KCMI Statements, VALMIN Reports and
mine valuation services to the resources, power, investment and financial services industries.
SMGC works across the following minerals: Thermal Coal, Metallurgical Coal, Nickel, Gold,
Manganese, Bauxite, Iron Ore and many other bulk commodities and base metals.
The most recent Resource estimates were completed in May 2017 as referenced in the Section
‘Relevant Reports and Documents’ of this report.
SMGC has been paid professional fees by Geo Energy Resources Limited (GERL) for the
preparation of this report. The fees paid were not dependent in any way on the outcome of the
technical assessment.
SMGC is independent from Geo Energy Resources Limited (GERL). No SMGC staff or
specialists who contributed to this report have any interest or entitlement, direct or indirect, in the
Company, the mining assets under review, or the outcome of this report.
Joyanta Chakraborty
BE Mining, MAusIMM, CPI
1. INTRODUCTION
1.1 SCOPE OF WORK

SMG Consultants (SMGC) was engaged by Geo Energy Resources Limited (GERL) to prepare
an independent estimate of Open Cut Coal Reserves for the coal mining project (Project)
combining two adjacent coal concessions in the South Kalimantan island of Indonesia.
This Statement of Coal Reserves for the Project’s Open Cut Coal Mine has been prepared by
SMGC for GERL. The purpose of this report is to provide an assessment of the coal Reserves in
compliance with SMGC’s interpretation of the Australasian Code for Reporting of Mineral
Resources and Ore Reserves (JORC Code, 2012).
The Resource Statement used as the basis for Reserves estimation has been compiled by
Mr. Abdullah Dahlan of SMGC. Mr. Dahlan is a Member of The Australasian Institute of Mining
S1708—6th July 2017

A-15
and Metallurgy and is a full time employee of SMGC. He has sufficient experience in coal
geology and Resource evaluation to qualify as a Competent Person under the 2012 JORC code.
1.2 INTERPRETATION
Under the 2012 JORC Code, only Indicated and Measured Coal Resources can be considered
for conversion to Coal Reserves after consideration of the “Modifying Factors” including mining,
processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and
government factors.
To convert Resources to Reserves it must be demonstrated that extraction could be justified after
applying reasonable investment assumptions.
The highest confidence level establishes Proved Reserves from Measured Resources and a
lesser confidence level establishes Probable Reserves from Indicated Resources. A level of
uncertainty in any one or more of the Modifying Factors may result in Measured Resources
converting to Probable Reserves depending on materiality. A high level of uncertainty in any one
or more of the Modifying Factors may preclude the conversion of the affected Resources to
Reserves.
Key terms used to report Coal Reserves in this report are described below:
Coal Reserves are the same as Ore Reserves as described in The 2012 JORC Code,
which is defined as the economically minable part of a Measured and/or Indicated
Mineral Resource. These are also referred to as Run of Mine Reserves and include
dilution material and losses that may occur as part of the mining process, as well as
consideration of all relevant modifying factors. Coal Reserves are subdivided into Proved
and Probable to reflect the confidence of the underlying Resource data and confidence in
the application of modifying factors.
Marketable Reserves allow for a realistic yield in a coal beneficiation plant. In the case
of this coal, marketable Reserves are equivalent to Run of Mine Reserves as no
beneficiation of coal product is planned other than crushing.
Coal Resources are reported inclusive of Coal Reserves (i.e. Coal Reserves cannot be
added to Coal Resources).
1.3 APPROACH
This Reserve Estimate was prepared for maximising the Reserve tonnage for the Project. The
following approach was undertaken by SMGC to estimate Coal Reserves for this scenario:
1. The Coal Resources estimate and geological model used as the basis for Reserves
estimation has been compiled by Mr. Abdullah Dahlan of SMGC. Mr. Dahlan is a Member
of The Australasian Institute of Mining and Metallurgy and is a full time employee of
SMGC and has sufficient experience in coal geology and Resource evaluation to qualify
as a Competent Person under the 2012 JORC code.
2. The topographic surface used for the geologic model and the Resource and Reserve
statement was from total station survey data supplied by GERL. The As-dumped
topographic surface used for estimation is current up to the 19th May 2017 after
commencement of mining activity inside the Project area.
3. The Project’s engineering department has completed an execution level of mine plan and
the same was provided to SMGC for necessary verifications. A final pit design was
produced based this mine plan following the recommendations from the geotechnical
studies.
S1708—6th July 2017

A-16
4. Minex software was used to generate a ‘Reserves database’ for all Resources inside the
final pit design. Appropriate mining loss, dilution factors and density adjustments were
applied and ROM quantities and qualities were reported.
5. SMGC has reviewed the mine plan provided and found it suitable to support the current
Reserve estimation.
6. A financial model with suitable cost and revenue assumptions was then developed with
the yearly quantities and qualities from the mine plan to confirm that the Project is viable
given the assumptions of the study.
7. Recoverable Coal Reserves inside the final pit design were then classified as Proved or
Probable based on the boundaries for Measured and Indicated Coal Resources provided
in the Statement of Coal Resources.
8. The result of the Coal Reserve estimate and supporting information were documented in
this report.
1.4 RESULTS LIMITATIONS AND STANDARDS

It is important to note when considering this report that geological information usually consists of
a series of small points of data on a large blank canvas. The true nature of any body of
mineralisation is never known until the last tonne of ore has been mined out, by which time
exploration has long since ceased. Exploration information relies on interpretation of a relatively
small statistical sample of the deposit being studied; thus a variety of interpretations may be
possible from the fragmentary data available. Investors should note that the statements and
diagrams in this report are based on the best information available at the time, but may not
necessarily be absolutely correct. Such statements and diagrams are subject to change or
refinement as new exploration makes new data available, or new research alters prevailing
geological concepts. Appraisal of all the information mentioned above forms the basis for this
report. The views and conclusions expressed are solely those of SMGC. When conclusions and
interpretations credited specifically to other parties are discussed within the report, then these
are not necessarily the views of SMGC.
Reserve figures in this report deal exclusively with coal contained within the Project boundary
and have been limited by an upper weathering surface.
The underlying geotechnical assumptions used for in this Reserve estimate are derived from
geotechnical reports prepared by the PT Quantus Consultants Indonesia.
The ex-pit dumping strategy adopted for the underlying mine plan is based on a mutual mining
and dumping agreement between SDJ and its eastern neighbor AJE (Appendix H). The outcome
of this Reserve estimate will be different if the Project is not allowed to dump inside the AJE
concession.
1.5 JORC TABLE 1

This Coal Reserve Report has been carried out in recognition of The 2012 JORC Code published
by the Joint Ore Reserves Committee (“JORC”) of the Australasian Institute of Mining and
Metallurgy in 2012. Under the report guidelines all geological and other relevant factors for this
deposit are considered in sufficient detail to serve as a guide to on-going development and
mining.
In the context of complying with the Principles of the Code, Table 1 of the JORC code
(Appendix C) has been used as a checklist by SMGC in the preparation of this report and any
S1708—6th July 2017

A-17
comments made on the relevant sections of the JORC Table 1 and have been provided on an ‘if
not, why not’ basis. This has been completed to ensure that it is clear to an investor whether
items have been considered and deemed of low consequence or have yet to be addressed or
resolved.
The order and grouping of criteria of the JORC Table 1, reflects the normal systematic approach
to exploration and evaluation. Relevance and Materiality are the overriding principles which
determine what information should be publicly reported and SMGC has attempted to provide
sufficient comment on all matters that might materially affect a reader’s understanding or
interpretation of the results or estimates being reported. It is important to note that the relative
importance of the criteria will vary with the particular project and the legal and economic
conditions pertaining at the time of determination.
In some cases it may be appropriate for a Public Report to exclude some commercially sensitive
information. A decision to exclude commercially sensitive information would be a decision for the
company issuing the Public Report, and such a decision should be made in accordance with any
relevant corporation regulations in that jurisdiction.
In cases where commercially sensitive information is excluded from a Public Report, the report
should provide summary information (for example the methodology used to determine economic
assumptions where the numerical value of those assumptions is commercially sensitive) and
context for the purpose of informing investors or potential investors and their advisers.
2. TENURE
2.1 LOCATION AND ACCESS

The Project area is located in the Angsana and Sungai Lohan sub district, Tanah Bumbu
regency, South Kalimantan Province of Indonesia and covers an area of 724.6 ha (Figure 2.1).
The concession is situated 185 km due southeast of Banjarmasin the Capital Province of South
Kalimantan.
Access to the concession area is by an approximately 2 hour domestic flight from Jakarta to
Banjarmasin followed by 3 hour trip by car from Banjarmasin to Tanah Bumbu along tarred
regional roads. The Project area is approximately 30 minutes by car from Tanah Bumbu via a
regional tarred road and then palm plant haul road.
2.2 MINING TENURE

Tenure for the Project is held under two Izin Usaha Pertambangan (IUP) Operasi Produksi
licenses for two adjacent concessions. SMGC has been provided with the copies of the IUP
documents for the concessions and these are attached in Appendix D.
The details of these two concessions are shown in Table 2.1 and all Reserves reported in this
statement are contained within these concessions.
Table 2.1 – Concession Details
IUP PT Sungai Danau Jaya (SDJ) PT Tanah Bumbu Resources (TBR)

Type IUP Operasi Produksi IUP Operasi Produksi
Number N0. 188.45/311/ DISTAMBEN /2014 N0. 188.45/402/DISTAMBEN/2014
Company Name PT Sungai Danau Jaya (SDJ) PT Tanah Bumbu Resources (TBR)
Kabupaten Tanah Bumbu Tanah Bumbu
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A-18
Province South Kalimantan South Kalimantan

Resource Coal Coal
Area 235.5 ha 489.1 ha
Date Signed 17 Juni 2014 13th August 2014
Expiry 29 Mei 2022 11th January 2022
SMGC makes no warranty or representation to either GERL or third parties (express or implied)
in regard to the validity of the IUPs and documentations. This Reserve Report does not constitute
a legal due diligence of the concessions. The clean and clear (C&C) certificates for both the IUPs
(SDJ - No. 467/Bb/03/2014 and TBR - 682/Bb/03/2016) were issued by Directorate General of
Mineral and Coal. SMGC has been given copies of the certificates. The same appears under
Ministry of Energy and Mineral Resources (MEMR) WebGIS.
2.3 NEIGHBOURS
The Project is surrounded by several neighbouring concessions one of which has cooperative
mining and dumping arrangements with SDJ. Therefore it is necessary to have a clear
understanding about the names and positions of these neighbouring concessions which play a
crucial role in executing the mine plan which underlays this JORC statement. Figure 2.2 shows
the Project along with the neighbouring concessions.
S1708—6th July 2017

A-19
115°0'0"E 115°30'0"E 116°0'0"E
Pantai
KAB. TAPIN
Binuang KAB. KOTABARU
ARUTMIN (ATA) Sarungga
PD BARAMARTA
BARAMEGA CITRA SADA
KOTABARU
Sampang Emput Senakin Anchorage
Rantaupanjang
Pengaron Stagen/ Kotabaru
ARUTMIN (MEREH)
Tarakan
KAB. BANJAR Batukemud
ARUTMIN (MANGKALAPI) Berangas
MALAYSIA Batulicin Loading
Batuamparan
Pontianak KAB. TANAH BUMBU
KALIMAN TAN Samarinda Batulicin
Palu
Palangka Raya
Lasung
3°30'0"S
3°30'0"S
Banjarmasin
Makassar
A-20
TUNAS INTI ABADI
ARUTMIN (SATUI)
Pagatan
PRO JECT
LEGEND KAB. KOTABARU
Coal Mining BIB (BATULAKI) Sebamban
Transhipment BIB (SEBAMBAN)
WAHANA BARATAMA MINING PBR (Pelabuhan Buana Reja)
City
Tanjung Petang Anchorage 1,800 m
Village Satui
0m
KAB. TANAH LAUT ARUTMIN (ASAM-ASAM)
Airport HUB ELEVATIO N
Wahana Baratama Mining
Kabupaten Kintap Karambu
Bunati Anchorage
Road Satui Anchorage
Major Road
Geo En er gy Resour ces Li m i ted
O ther Road Com bined JORC Reser ve Statem ent
10 5 0 10
Kilometers Location Map of the Project
Figure No.
4°0'0"S
4°0'0"S
www.smgc.co.id Design CE 21/ 06/ 17 Scale 1:550,000 Paper A4 L
2.1
+ 622157935968 Drawn CE 21/ 06/ 17 File S1708_locmap_a4_SDJ_TBR_02.mxd
115°0'0"E 115°30'0"E 116°0'0"E
KO P Hati'if Bara Makmur
PT Prolindo Cipta Nusantara
LEGEND
Project
Coal Concession
PT Sungai Danau Jaya
PT Tanah Bumbu Resources
PT Angsana Jaya Energi
Other Concessions
A-21
CV Mitra Anugerah Sejahtera
PT Tantra Mining Development
Com bined JORC Reser ve Statem ent
Neighbouring Concessions
500 250 0 500 1,000 1,500 Figure No.
Meters www.smgc.co.id Design CE 21/ 06/ 17 Scale 1:50,000 Paper A4 L
+ 622157935968 S1708_neighbor_a4_SDJ_TBR_02.mxd
2.2
Drawn CE 21/ 06/ 17 File
2.4 FORESTRY STATUS
2.4.1 Izin Pinjam Pakai Kawasan Hutan (IPPKH)

Existing forest in Indonesia is generally classified as either Hutan Produksi (HP), which is forest
that may be felled for industry purposes (generally timber), or Hutan Lindung (HL) which is
protected forest. Through negotiation with stakeholders it is possible to obtain a permit to
“borrow” land which is classified as HP for use in mining activities. In the case of SDJ and TBR
the lease covers Non-Forested area (APL) in the southern part and Convertible Production
Forest (HPK) at the northern part, so IPPKH is required for the northern part. Different forest
categories in and around the Project area are shown in Figure 2.3.
Existing IPPKH 1 (SDJ)
SDJ holds a valid IPPKH through 29th May, 2022 for a total area of 68.5 Ha and the current
mining activities are restricted within this area as shown in Figure 2.3.
IPPKH 2 under process (SDJ)
The residual 16.03 Ha area of HPK inside SDJ concession requires an additional IPPKH in order
to extend mining activities in this area. SDJ had already applied for an IPPKH for this area and
the same application has now been supported by the Ministry of Energy and Mineral Resources
(ESDM) via a letter number 1859/30/DJB/2016 dated 30th December, 2016. This states that PT
SDJ can be granted an IPPKH over the said area as long as the coal produced from this area is
sold to meet the domestic coal needs of the Republic of Indonesia. This specific rule is called a
Domestic Marketing Obligation (DMO) and is further discussed in the Section 11.
IPPKH 3 under process (TBR)
Approximately 91.1 ha in the northern part of the TBR concession is classified as HPK and so an
IPPKH is required before mining can commence in this area. The application for this area is
under process and a recommendation letter dated 22nd January 2015 from the Governor of
South Kalimantan to the Ministry of Environment and Forestry was accepted on 9th May 2016 by
the Ministry (Appendix E). At the time of writing this report SMGC was informed that the IPPKH
has been granted and a copy of the same will be soon collected from the concerned department.
IPPKH 4 under process (AJE)
Approximately 227 Ha of the AJE concession comes under the HPK forest category and so an
IPPKH is required for this area before mining activity can take place. SMGC was informed that
an application has been already made in this regard for obtaining the same.
In the opinion of SMGC, obtaining these permits is a timing issue and SMGC does not see any
reason why they would not be granted. However, the timing of obtaining this IPPKH has a direct
impact on the underlying life of mine plan strategy and that in turn can change the outcome of the
current Reserve statement.
S1708—6th July 2017

A-22
LEGEND
Project
PPKH
PPKH 1 SDJ
PPKH 2 SDJ
PPKH TBR
PPKH AJE
Forest Classification
Areal Penggunaan Lain Non forest Area
Hutan Produksi Production Forest
Hutan Produksi Konversi Convertible Production Forest
PT S NGA DANA JA A
A-23
PT TANAH B MB RESO RCES
Com bined JORC Reser ve Statem ent
Forestry Map and PPKH areas
Figure No.
1 0.5 0 1 2
www.smgc.co.id Design CE 22/ 06/ 17 Scale 1:50,000 Paper A4 L 2.
Kilometers
+ 622157935968 Drawn CE 22/ 06/ 17 File S1708_ ores _a4_PTSDJ_TBR_04.mxd
3. GEOLOGY
This section is a summary of the report “Combined JORC Resource Statement, PT Sungai
Danau Jaya and PT Tanah Bumbu Resources, dated June 2017, Prepared for Geo Energy
Resources Limited” by SMGC. The reader is referred to that document for a more detailed
discussion on geology and Resources.
3.1 OVERVIEW
3.1.1 Regional and Local Geology

The Project area is located in the southern part of the Barito Basin. The Barito Basin commenced
its development in the late Cretaceous, following a micro-continental collision between the
Paternoster and SW Borneo micro-continents (Metcalfe, 1996; Satyana, 1996). The Dahor
Formation is the coal bearing formation. This formation consists of quartz sandstone, friable,
locally with intercalations of clay, lignite, limonite, smoky-quartz and basalt gravels.
The main coal bearing lithology within the Project area is the Dahor Formation. Coal in this
formation shows a single phase of seam splitting. 12 named parent coal seams have been
intersected by exploration drilling within the Project area. Of these 12 seams, the A5A, A5B,
A5C, A5D, A6A and A6B seams have split into an upper and lower member. In total 18 named
seam plies have been identified and are included in the structural geological model.
Coal seams strike in a roughly south-easterly direction and dip to the southwest. Seam dips are
relatively gentle with an average recorded dip of 5°. The total seam thickness summary of the
raw borehole input values is located in Table 3.1.
Table 3.1 – SDJ Seam Thickness Summary

THICKNESS
SEAM INTERSECTION
MIN MAX MEAN
A6B2 0.5 4.1 2.5 25
A6B1 0.3 3.3 1.4 32
A6A4 0.2 1.6 0.7 23
A6A2 0.2 2.5 0.9 21
A6A1 0.2 1.6 0.6 22
A5D2 0.8 9.8 4.5 136
A5D1 0.8 9.0 3.5 136
A5C2 0.4 4.6 2.5 99
A5C1 0.1 3.2 0.8 99
A5B2 0.4 6.4 2.8 135
A5B1 1.5 16.9 10.1 134
A5A2 0.3 2.7 0.8 39
A5A1 0.2 1.5 0.4 39
A3 0.7 1.4 1.0 11
A2 0.3 0.7 0.5 6
A1 0.2 0.8 0.5 3
A0 0.7 1.0 0.9 2
A 2.5 6.4 5.1 4
SUMMARY 0.1 16.9 2.1 966
S1708—6th July 2017

A-24
3.2 EXPLORATION HISTORY AND DATA

There have been a number of phases of exploration completed in the Project area in the past 7
years. The first phase is a limited coal outcrop mapping programme and shallow drilling
programme was undertaken across a portion of the SDJ in 2010, and TBR in 2013.
A second stage exploration programme in SDJ then continued from December 2013 until March
2014. This stage included further coal outcrop mapping, and 200 m spaced borehole drilling with
typically shallow drill depths and no coal quality analysis over a greater percentage of the SDJ
area.
The second stage exploration programme in TBR went from December 2013 until May 2014.
This stage included further coal outcrop mapping and 250 m spaced borehole drilling with
typically shallow drill depths and no coal quality analysis over a greater percentage of the TBR
area. A total of 48 boreholes were drilled during this stage. During October 2014 to December
2014 the third stage exploration programme continued with a total of 22 boreholes being drilled
with 100 m maximum depth and coal quality analysis.
The favourable results obtained from these previous exploration programmes, led to a more
extensive and systematic. Exploration programme being conducted during the period of April
2014 to June 2014 in SDJ and during the period of December 2015 to February 2016 in TBR.
The programme was implemented and managed by SDJ and DPC. The exploration activities
included detailed drilling, down-hole geophysical logging, coal quality analysis and topographic
surveying
3.3 COAL QUALITY

Coal quality sampling was undertaken by GERL geologists, with the analysis testing being
completed by PT Geoservices Coal Laboratories in Banjarbaru. PT Geoservices reports that its
Banjarbaru laboratory is accredited to ISO 17025 standards and that quality control is maintained
by daily analysis of standard samples and by participation in regular "round robin" testing
programmes. No duplicates from core samples were analysed for quality assurance and quality
control purposes. As far as SMGC are aware, PT Geoservices is independent of SMGC, GERL
and all related companies.
A range of international standard methods have been used by PT Geoservices in their coal
analysis tests. Reporting of quality variables has been completed on an air-dried, as received
and dry ash free basis. American Society for Testing and Materials (ASTM) methods has been
used for all quality variables with the exception of Relative Density. Australian Standards (AS)
has been used for determination of Relative Density.
The following tests were undertaken as standard on all coal samples:
Total Moisture (TM)
Inherent Moisture (IM)
Ash Content (AS)
Volatile Matter (VM)
Fixed Carbon (FC)
Total Sulphur (TS)
Calorific Value-air dried basis (CV adb)
Relative Density (RD)
S1708—6th July 2017

A-25
Of the boreholes that have been sampled in the Project area, 36 of the total 185 contain quality
data. All 36 of these holes have associated geophysical data logs and only these holes have
been used in the quality modelling process. From these boreholes a total of 76 valid samples
were collected based on samples containing Ash and In situ Moisture records.
The proximate analysis results from the samples in the area (Table 3.2) show the coals to have
high moisture, highly variable ash, low sulphur and low energy content.
3.4 GEOLOGICAL MODELLING

A geological model for the Project area was generated using Minex Geologic Modelling Software.
The Minex Growth method was used for all structural modelling.
Validated collar surveys, lithology data and geophysical logs were required as a minimum for a
borehole to be used in the modelling process. A total of 185 boreholes have been completed in
the Project area.
A total of 36 of these validated boreholes have sufficient coal quality analyses to act as
significant Points of Observation for the JORC Resource estimations. A valid point has been
defined as a seam intersection that is surveyed and cored, where quality analysis has been
geophysics.
The topography used in the current geological model is the mined out topography as of 19th May
2017. Topographic contour data was generated from this total station survey as XYZ co-
ordinates points and imported into the database in ASCII format. This is considered to be of
sufficient accuracy for the estimation of Coal Resources and Coal Reserves.
A “non-conformable” base of weathering surface for the current geological model was generated
using a default depth of weathering of 3 m below topography. This was due to the limited logging
of the weathered material in historical lithological logs. All grids in the final model are cut to this
surface 3 m below the topography.
3.5 OTHER EXPLORATION ACTIVITIES WITHIN THE CONCESSION

No exploration work is currently underway following the completion of the drilling programme at
TBR in February 2016.
S1708—6th July 2017

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Table 3.2 – Coal Quality Summary (Boreholes)
TM IM ASH VM TS CV
FC RD NUMBER
SEAM ar adb adb adb adb adb ar
adb (t/m3) SAMPLES
(%) (%) (%) (%) (%) (kcal/kg) (kcal/kg)
A6B2 35.0 19.8 3.7 39.6 36.7 0.2 5,307 4,305 1.36 1
A6B1 34.5 27.7 3.6 36.6 31.9 0.3 4,693 4,254 1.31 1
A6A4 36.4 27.0 4.7 35.4 32.8 0.2 4,759 4,145 1.33 1
A6A2 32.4 16.5 10.7 39.7 32.9 0.3 5,024 4,061 1.40 2
A6A1 32.4 16.5 10.7 39.7 32.9 0.3 5,024 4,061 1.40 2
A5D2 35.2 17.0 3.6 40.7 38.6 0.2 5,369 4,193 1.36 25
A5D1 35.1 16.7 3.7 40.9 38.5 0.2 5,383 4,195 1.36 23
A5C2 35.1 17.5 5.0 40.6 36.7 0.4 5,329 4,191 1.36 16
A5C1 34.2 17.6 6.9 40.3 36.6 0.4 5,258 4,202 1.37 11
A5B2 35.1 17.4 4.3 40.3 38.0 0.3 5,354 4,210 1.36 22
A5B1 35.1 17.4 3.4 39.9 39.1 0.2 5,388 4,233 1.35 23
A5A2 36.4 13.2 6.6 43.3 36.7 0.2 5,458 4,007 1.37 6
A5A1 36.1 13.3 10.2 40.3 36.0 0.2 5,178 3,804 1.40 6
A3 36.5 14.3 5.9 42.5 38.4 0.3 5,506 4,082 1.40 2
A2
A1
A0 32.2 14.4 8.7 39.8 36.9 1.6 5,310 4,210 1.42 1
A 34.0 14.3 3.2 40.8 41.5 0.3 5,652 4,354 1.37 2
MEAN 35.2 17.3 3.9 40.4 38.5 0.2 5,371 4,211 1.36
MIN 30.1 9.7 1.7 35.5 29.5 0.1 4,446 3,360 1.25
MAX 40.3 27.8 24.0 45.8 44.7 1.6 5,902 4,639 1.52
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4. RESOURCES
4.1 RESOURCE DIMENSIONS

Drilling has identified a multi-seam coal Resource approximately 3.0 km long and 2.0 km wide
within the Project area. The geometry of this deposit is limited by the Project’s concession
boundaries to the north, east, and west. There is reasonable potential that the deposit extends
beyond the limit of the current drilling programme in the south of the TBR concession.
4.2 RESOURCE CLASSIFICATION

A division of the Resources into Measured, Indicated and Inferred status was undertaken for the
geological model.
The following Resource dimensions were used:
Measured – 250 m radius circular polygon around Points of Observation
Indicated – between 250-500 m radius circular polygon around Points of Observation
Inferred – between 500-1,000 m radius circular polygons around Points of Observation
Resource classifications for the Project were defined using the following criteria:
Only boreholes that had valid survey collars (not GPS-survey) were used, i.e. those
boreholes not surveyed have not been considered.
Cored boreholes that were geophysically logged and sampled were considered as valid
points of observation for Resource calculations.
Non-logged holes were considered in structural modelling if coal seam thickness
demonstrated valid thickness and recovery with adjacent geophysically logged boreholes.
Open holes, intersecting coals seams with geophysical logs were also used to ensure
continuity of the Resource calculation along the strike length of the deposit.
A default density was not applied to Resource calculations as all estimated seams had a
sufficient number and distribution of relative density analysis results to allow for
extrapolation across the concession area.
The extent of the various Resource categories for each of the seams in the Project area can be
seen in Appendix F.
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4.3 RESOURCE SUMMARY

Table 4.1 summarises the JORC Resource estimates computed by SMGC within the Project
area.
Table 4.1 – Resource Estimates as of 19th May 2017
MEASURED INDICATED INFERRED TOTAL

Mt Mt Mt Mt
TOTAL 78.1 17.2 1.7 97.0
*This table must be presented with the entire JORC Resource Statement from which it was obtained.
*All values are rounded to the nearest million tonnes.
Resource estimates for the Project were based upon in situ density (ID) grids that have been
converted from relative density data using the Preston-Sanders method. Sufficient relative
density data was available to allow modelling of density for all estimated seams. The Resource
depth was limited to a Lerch Grossman pit optimisation base surface (GEOM07), (as discussed
in Section 7 of the Resource report) with a minimum seam thickness set to 0.30 m. All seams
were truncated against the base of weathering surface 3 m below topography. All Resources
were limited to the concession boundary.
5. EXPLOITATION HISTORY AND RECONCILIATION
5.1 EXPLOITATION HISTORY

Mining operations inside the Project area commenced in December 2015. SMGC was provided
with production records from the start of operations to the end of 20th May 2017. The actual
waste mined, coal mined and project cumulative stripping ratio are shown in Figure 5.1 and
Figure 5.2.
Figure 5.1 – Historical Waste Mining Volumes
3,000
2,500
2,000
Waste Mining (Kbcm)
1,500
1,000
500
-
Jan-17
Jan-16
Jun-16
Jul-16
Feb-16
Mar-16
Feb-17
Mar-17
Nov-15
Dec-15
Aug-16
Sep-16
Nov-16
Dec-16
01 - 20May-17
May-16
Oct-16
Apr-17
Apr-16
Months
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Figure 5.2 – Historical Coal Mining Quantities
Coal Mining (Kt) Strip Ratio (bcm/t)
1,000 10.0
900 9.0
800 8.0
700 7.0
600 6.0
Strip Ratio (bcm/t)

Coal Mining (Kt)
500 5.0
400 4.0
300 3.0
200 2.0
100 1.0
- -
Jan-16
Jun-16
Jan-17
Jul-16
Mar-17
Feb-16
Mar-16
Feb-17
Dec-15
Aug-16
Sep-16
Nov-16
Dec-16
01 - 20May-17
May-16
Oct-16
Apr-16
Apr-17
Months
5.2 CURRENT OPERATION

The waste mining area, coal mining area, waste disposal ground and sediment structures are
shown from Figure 5.3 to Figure 5.6.
Figure 5.3 – Waste Mining
Figure 5.4 – Coal Mining
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Figure 5.5 – Waste Disposal Area
Figure 5.6 – Sediment Control
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5.3 PRODUCTION RECONCILIATION

A reconciliation of actual production results versus the geological model estimates was
undertaken for the Project from start of mining in December 2015 till 19th May 2017. The
methodology used for the reconciliation is presented in the following Table 5.1:
Table 5.1 – Reconciliation Methodology

Step Description
Sanity Check - The difference between the total barged coal to the vessel and the total hauled coal to
1 the stockpile for the period was compared against the surveyed stockpile quantity at the end of the
period.
In situ to ROM Conversion Check - The in situ coal production for the period was converted to the run-
2 of-mine (ROM) coal using the same set of parameters used during JORC and then the ROM quantity was
compared against the total hauled coal to the stockpile
Quality Check - The weighted average qualities of the ROM coal for the period was compared against
3
that of the total shipped coal qualities based on the certificate of analysis (COA) results
5.3.1 Sanity Check

This very basic check shows that the balance stock at the port stockpile after barging closely
matches with the surveyed measurement of the same (Table 5.2). This ensures that the total
hauled coal (8,770,071 t) to the port during the period is correct and can be used as number for
comparison in the following checks.
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Table 5.2 – Sanity Check Results
Description Unit Value Formula Remarks

Total Hauling to Port Stockpile tonne 8,770,071 a Recorded by weighbridge
Total Barging from Port Stockpile tonne 8,760,225 b Recorded by draft survey
Balance Stock at Port Stockpile tonne 9,846 c=a-b By Difference
Surveyed Stock at Port Stockpile tonne 9,291 d Measured by TOTAL STATION
Difference tonne 555 c-d By Difference
5.3.2 In situ to ROM Conversion Check

1. The original topography prior to any mining activity on the project area, the supplied as-
dumped topography and the current in situ geological model were used to generate an in
situ reserve database for the coal produced during the period.
2. This was then converted to a run-of-mine (ROM) database using the same set of
parameters used during last JORC (Section 8.3 of the document - “JORC Reserve
Statement, March 2017”). Figure 5.7 below demonstrates this conversion methodology.
Figure 5.7 – In situ to ROM Conversion
3. The ROM quantity of coal was then compared with the total hauled coal to the
stockpile. This check shows a very close match between the two (see Table 5.3).
Table 5.3 – Hauled Coal vs ROM Coal
Description Unit Value Formula Remarks

Total Hauling to Port Stockpile tonne 8,770,071 a Recorded by weighbridge
Total ROM Coal tonne 8,890,736 b In situ to ROM Conversion
Match % 99 a/b
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5.3.3 Quality Check

1. Weighted average of the recorded qualities of the shipped coal during the period was
calculated using all the certificate of analysis (COA) data.
2. These were then converted to a dry-basis to eliminate any variation for inherent moisture due
to variable standards used. Table 5.4 below shows these two results side by side.
Table 5.4 – Air Dried and Dry Basis Qualities
Ash TS VM IM FC CV
Basis
(%) (%) (%) (%) (%) kcal/kg
Air Dried Basis 4.2 0.19 41.6 15.8 38.0 5,382
Dry Basis 5.0 0.22 49.4 0.0 45.2 6,394
3. The In situ and ROM quantities of the hauled coal on dry-basis was then compared against
these weighted average of the shipped qualities. This shows that the shipped Ash is close to
both in situ and ROM ash.
Table 5.5 – Shipped Qualities vs Geomodel Qualities
Ash TS VM IM FC CV
Description
(%) (%) (%) (%) (%) kcal/kg
Shipment 5.0 0.22 49.4 0.0 45.2 6,394
ROM Database 5.2 0.20 49.3 0.0 46.0 6,421
In situ Database 4.9 0.20 49.3 0.0 45.9 6,442
Note: stated as dry basis
5.3.4 Conclusion and Recommendations

The major finding of the reconciliation is that it substantiates the validation of the current loss and
dilution assumptions (Table 5.5) established during the last JORC Reserve estimate in March
2017 which pointed out that the dilution of waste material to clean coal during mining is negligible
(~ 3 mm) and top-bottom coal losses during mining are almost 7.5 cm which is more than the
industry standard (5 cm).
Further studies and ongoing reconciliations are strongly recommended to increase the level of
confidence in the predicted product tonnes and qualities.
6. DEPOSIT CHARACTERISATION AND MINING METHOD
6.1 DEPOSIT CHARACTERISATION
6.1.1 Introduction
The deposit in the Project area is characterised by the following features:
A small number of coal seams
Thick parent coal seams (> 3 m)
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Thick interburden (> 10 m)

Shallow dips, average 5°
6.1.2 Waste Horizons

The in-seam interburden thickness in this deposit largely falls under the thick category (>10 m in
thickness) as demonstrated in Figure 6.1. This implies that most of the waste material can be
mined using medium to large sized excavators (100 to 200 t).
Figure 6.1 – Interburden Thickness Categories
Thin (0 m - 2 m) Medium (2 m - 10 m) Thick (> 10 m)
6%
9%
85%
Note:
- The above estimate is based on a Working Section Model
- The estimation is restricted between Original Topography and A5A1 Seam floor inside the project area
- Percentages are expressed as Percentage of Total Waste Volume
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6.1.3 Coal Structure

Seam Thickness
Figure 6.2 shows the distribution of mineable seam thickness in the deposit. These thicknesses
have been derived from the In situ geological model by generating a working section model after
joining the minimum parting thickness. It is clear from the distribution that 85 % of the total
mineable coal tonnes are coming from seams which are greater than 3 m in thickness. This
indicates the possibility of high recovery of coal during mining and of being able to use medium
sized excavators for mining.
Figure 6.2 – Coal Thickness Distribution
0.00 - 0.30 0.30 - 0.75 0.75 - 1.00 1.00 - 1.50 1.50 - 2.00
2.00 - 3.00 3.00 - 5.00 5.00 - 10.00 > 10 m
1% 1%
2%
2%
3%
6%
44%
14%
27%
Note:
- The above estimate is based on Working Section Model
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Seam Gradient
The distribution of tonnage based on seam gradient is shown in Figure 6.3 below. The majority
(97 %) of the seams in this deposit show low dips (0 to 10 degrees). This will be beneficial in
enabling simple coal mining practices and allowing waste to be dumped back in pit with minimal
geotechnical concerns.
Figure 6.3 – Seam Gradient Distribution
0 deg - 5 deg 5 deg - 10 deg > 10 deg
3%
14%
83%
Note:
- The above estimate is based on Working Section Model
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6.1.4 Coal Quality

There is a very little variation in the coal quality in this deposit both stratigraphically down the
seam sequence and also spatially across the concession area. The Project coal can be classified
as Low sulphur, High Volatile Moderate Ash coal with Low Gross as Received Energy (GAR)
content as:
82 % of coal tonnes come within a TS range of 0.1 % to 0.3 %
94 % of coal tonnes VM is greater than 39 %
83 % of coal tonnes come within an Ash range of 3 % to 7 %
80 % of coal tonnes GAR Energy come within a range of 3800 to 4400 Kcal/Kg
Figure 6.4 and Figure 6.5 shows the distribution of various DAF Energy zones for two major
seams across the Project area. It is evident that there is a general trend of increasing energy
from east to west.
Figure 6.6 to Figure 6.9 show the tonnage distribution under different ranges of Total Sulphur
(TS), Volatile Matter (VM), Ash and Gross As Received Energy (GAR).
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A-40
Figure 6.6 – Total Sulphur Distribution

14.00
A6B2 A6B1 A6A4 A6A2 A6A1 A5D2 A5D1
12.00
10.00
8.00
Reserve Tonnage
(in Million Tons)
6.00
4.00
2.00
0.00
> 0.32
0.00-0.10
0.10-0.12
0.12-0.14
0.14-0.16
0.16-0.18
0.18-0.20
0.20-0.22
0.22-0.24
0.24-0.26
0.26-0.28
0.28-0.30
0.30-0.32
TS Categories
Figure 6.7 – Volatile Matter Distribution

14.00
12.00
10.00
Reserve Tonnage
(in Million Tons)
8.00
6.00
4.00
2.00
0.00
38.00 -
39.00 -
40.00 -
41.00 -
42.00 -
43.00 -
44.00 -
45.00 -
46.00 -
> 47.00
0.00 -
38.00
39.00
40.00
41.00
42.00
43.00
44.00
45.00
46.00
47.00
VM Categories
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Figure 6.8 – Ash Distribution

30.00
25.00
20.00
Reserve Tonnage
(in Million Tons)
15.00
10.00
5.00
0.00
0.00 - 3.00
3.00 - 4.00
4.00 - 5.00
5.00 - 6.00
6.00 - 7.00
7.00 - 8.00
8.00 - 9.00
> 9.00
Ash Categories
Figure 6.9 – As Received Energy (GAR) Distribution

20.00
18.00
16.00
14.00
12.00
Reserve Tonnage
(in Million Tons)
10.00
8.00
6.00
4.00
2.00
0.00
3800 -
3900 -
4000 -
4100 -
4200 -
4300 -
> 4400
0.00 -
3800
3900
4000
4100
4200
4300
4400
CVR Categories
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6.2 MINING METHODS

Based on the above observations on the different characterisations of the Project’s deposit it is
assumed that a standard truck and excavator method will be the most appropriate. This method
is well proven and a common practice in Indonesia.
Waste Mining
Waste material will be mined using medium sized (100 to 200 t) hydraulic excavators and loaded
into standard rear tipping off-highway trucks (100 t) and hauled to dumps in close proximity to the
pits or to in-pit dumps where possible.
Coal Mining
Cleaning of coal will be achieved by small sized hydraulic excavators (40 t) with flat-bladed
buckets. Minimum dilution and greater recovery is likely to be expected due to thick nature of the
coal seams with low dip. Excavation of coal will be achieved using small hydraulic excavator of
40 t class with standard coal buckets and loaded into 30 t dump trucks.
7. ESTIMATION OF COAL RESERVES
7.1 DETERMINATION OF OPEN CUT LIMITS

Mining has commenced in the Project area inside SDJ concession in December 2015 and since
then the Project has produced around 9 million tonne of coal till May 2017. Currently the Project
is producing an average 632 Kt coal per month. The Project is targeting to an average 14.8 Mt
annual coal production starting 2018. The Project’s engineering department has completed a full
phased Life of Mine (LOM) plan in consultation with its on-board mining contractor PT Bukit
Makmur Mandiri Utama (BUMA). SMGC has reviewed the mine plan, used the physical
quantities and built a preliminary financial model using the cost and revenue assumptions
discussed under Section 12 to check for the financial viability of the same in the current context.
It is observed that the current mine plan is valid and can be used for the basis of the current
Reserve estimation. SMGC has generated a pit design from the current mine plan to determine
the open cut economic mining limits for this current Reserve estimation process.
7.2 ORIGINAL AND AS-DUMPED TOPOGRAPHIC SURFACE

The original topography of the Project area prior to any mining operations was derived from
LIDAR remote sensing data in January 2012. This data was supplied as X, Y, Z points which was
converted into a 2D grid in Minex. Mining commenced in the Project area in December 2015 as
discussed in the Section 7.1. The mined out void and waste disposal areas were regularly
surveyed by total station at the end of each month. This data was provided in ASCII format to
SMGC and dated as of 19 May 2017. SMGC has merged this data with the original LIDAR
topographic data to produce an as-dumped surface which represents the current topography of
the area as of 19 May 2017. This surface was used in the current resource and reserve
estimation process as a top limit to exclude any mined out coal from the calculation.
7.3 BASE OF WEATHERING

A “non-conformable” base of weathering (BOW) surface was generated during the Resource
estimation stage using a default depth of weathering of 3 m below the original topographic
surface. The original BOW was then modified and a new BOW generated which was the lower of
the original BOW and the as-dumped surface. This modified BOW surface was then used during
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estimation. This ensured that the coal in the model was accurately reported in the mined out
areas and beneath the waste dumps. This modified BOW is shown in Figure 7.1.
Figure 7.1 – Base of Weathering Surface
Original Base of Weathering (3 m below topography)

Waste Dump Original Topography
Mined Out Pit
The Base of Weathering Surface was

modified so that it followed the lower of
the mined out and original BOW
7.4 FINAL PIT DESIGN

The pit design used in the current LOM plan was provided to SMGC. SMGC has reviewed the
design in context of the geotechnical guidelines recommended by PT Quantus Consultants
Indonesia and made some minor adjustments.
Detailed mining bench and berm design has not been undertaken for the final pit design as this is
considered to have no material impact on the estimation of Reserves.
The base of the final pits and the depth zones are shown in Figure 7.2 and Figure 7.3
respectively. Figure 7.4 to Figure 7.6 shows cross sections of the final pits.
7.5 DENSITY AND MOISTURE ADJUSTMENT FACTORS

Determination of the in situ density of coal from borehole core samples is essential for the
accurate estimation of reserves, especially for low rank coals which have high total moisture
(TM) content. If no adjustment to density is made then it is considered likely that Coal Reserves
of low rank coal would be significantly overstated as the in situ density of low rank coal is much
less than the air-dried density.
For seams with air-dried density data, the in situ density of the coal has been computed using the
Preston-Sanders method to account for the difference between air-dried density and in situ
density. The following formula was used to put the coal tonnage on an “as received” basis.
RD2 = RD1 x (100 – M1) / (100 + RD1 x (M2 – M1) – M2)
WHERE : RD2 = relative density (ar)
: RD1 = relative density (ad)
: M1 = Moisture (ad)
: M2 = Moisture (ar)
7.6 IN SITU WASTE AND COAL

The total volume of in situ waste and coal in the final pit design is shown in Table 7.1. This
includes waste and coal within the Project area.
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It is important to note that these tonnes cannot be classified as Reserves as modifying factors
have yet to be applied, and also some of the tonnes in the pit shell are unclassified or are only at
Inferred Resource status.
Table 7.1 – In situ Waste and Coal in Final Pit Design
Waste Coal SR
(Mbcm) (Mt) (bcm/t)
260.4 90.3 2.9
*Tonnes reported on an in situ density (arb basis)
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7.7 LOSS AND DILUTION PARAMETERS

SMGC has used the reconciliation results from the start of mining in December 2015 up to
December 2016 as the coal recovery and adjustment factors for estimating coal Reserves for the
concession. This was considered a more reasonable approach than trying to match up modelled
and actual results by adjusting loss and dilution thickness parameters in a trial and error fashion.
The reader is referred to the section 5.2 of the Reserve report - “JORC Reserve Statement,
PT Sungai Danau Jaya, dated March 2017” for the detailed derivation of the same.
The parameters, coal recovery and adjustment factors used for the estimation of in-pit ROM coal
from modelled in situ coal are shown in Table 7.2.
Table 7.2 – Loss and Dilution Parameters
Parameter Assumption
Minimum Minable Coal Thickness 0.3 m
Minimum Minable Parting Thickness 0.2 m
Global Recovery Factor 98 %
Dilution Top 0.3 cm Bottom 0.3 cm
Loss Top 7.5 cm Bottom 7.5 cm
7.8 IN SITU TO ROM CONVERSION METHODOLOGY
7.8.1 In situ to ROM Conversion

The in situ database was converted to a ROM database by using the following steps:
1. apply Preston-Sanders adjustment (section 7.5);
2. exclusion of thin coal layers which are less than the minimum mineable thickness;
3. apply global recovery to all mineable coal layers;
4. apply top and bottom loss for all mineable coal layers; and
5. apply top and bottom dilution for all mineable coal layers
The above procedure is shown in Figure 7.7. This procedure is implemented in the Reserves
database using Minex software. The result of this conversion is summarised in Table 7.3 below.
The tonnes in this table do not represent Coal Reserves as consideration has not been made for
boundaries of Measured and Indicated coal.
Table 7.3 – Estimate of Tonnes of In-pit Coal

% of
Waste Coal Strip Ratio Remarks
Final Pit Design In situ
(Mbcm) (Mt) (Bcm/t) Tonnes
In situ Coal Before Preston-Sanders Adjustment 290.4 98.9 2.9 100%
In situ Coal After Preston-Sanders Adjustment 290.4 92.0 3.2 93% Step 1
Mineable Coal after working section 291.3 90.9 3.2 92% Step 2
ROM Coal after Recovery, Loss and Dilution 294.4 85.2 3.5 86% Step 3+4+5
Marketable Coal 294.4 85.2 3.5 86% Same as ROM
*This table must be presented with the entire JORC Resource Statement from which it was obtained
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Figure 7.7 – In situ to ROM Procedure
Include thin interburden partings in working section
Coal
Waste < 0.2 m Coal
Coal
Adjacent coal plies and waste plies are joined
Coal
Coal
Coal
Waste
Waste Waste
Coal
Coal
Coal
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Waste thin coal
Waste
Coal < 0.3 m Waste
Waste
Apply losses and dilution
0.003m
Waste 0.075m
Coal Coal Coal
Waste 0.075m
0.003m
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7.9 OTHER MINEABLE COAL INSIDE PIT DESIGN

The pit designs that were used to estimate Reserves for the Project contain a proportion of Coal
Resources that are classified as Other Mineable Coal. Under the JORC Code, these Resources
cannot be converted to Reserves and are described in this document as other coal inside the pit
design (Table 7.4).
Explanations for the other coal component for the 13 seams have been grouped into two
categories:
Category 1
This includes the five top seams – A6B2 to A6A1. These seams contribute 5 % to the total
product tonnage. Drilling to date could not include these seams in the current Resource estimate
due to limited quality data points. SMGC has recommended a drilling programme with an
additional 10 boreholes to collect enough quality samples from these five upper seams so they
can be included in the next Resource estimate.
Category 2
This includes small portions of the eight bottom seams – A5D2 to A5A1. These are the main
seams contributing 95 % of the total product tonnes. The primary reason for this classification of
some coal in these seams is due to insufficient boreholes within reasonable proximity of
analysed borehole core samples. SMGC notes that the reason this coal has been included in the
pit design is there are generally open hole intersections with geophysics at sufficiently close
spacing to reasonably confirm the continuity and thickness of the seams and partings.
Figure 7.8 shows the other coal areas of the seam A5B2 which contributes 42 % to the total
product coal.
Table 7.4 – Seam by Seam Other Mineable Coal
Total Coal Proven Probable Other Coal

% of
Seams Tonne Tonne Tonne Tonne Explanation
(Mt) (Mt) (Mt) (Mt) Other Coal
A6B2 2.1 0.0 0.0 2.1 2.5% Category 1
A6B1 0.9 0.0 0.0 0.9 1.0% Category 1
A6A4 0.4 0.0 0.0 0.4 0.4% Category 1
A6A2 0.5 0.0 0.0 0.5 0.6% Category 1
A6A1 0.1 0.0 0.0 0.1 less than 0.1% Category 1
A5D2 19.0 18.2 0.8 0.0 less than 0.1% Category 2
A5D1 3.6 3.0 0.6 0.0 less than 0.1% Category 2
A5C2 7.8 6.4 1.1 0.3 0.3% Category 2
A5C1 0.7 0.3 0.4 0.0 less than 0.1% Category 2
A5B2 35.6 30.6 4.9 0.0 less than 0.1% Category 2
A5B1 12.5 8.8 3.7 0.0 less than 0.1% Category 2
A5A2 1.9 0.6 0.8 0.4 0.5% Category 2
A5A1 0.2 0.1 0.1 0.0 less than 0.1% Category 2
All 85.2 68.0 12.4 4.7 5.6%
*The percentages were expressed as the other coal tonne of individual seams over Total Product Coal Tonne (85.2 Mt)
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8. MINE SCHEDULING
A Life of Mine (LOM) plan was completed by the Project’s engineering department for the deposit
and the same was provided to SMGC. The LOM plan included a production schedule, waste
balance and preliminary equipment calculations. SMGC has reviewed the mine plan and
performed cross-checks to ensure that the operation is practical, achievable and that there is
sufficient dumping room to contain all the waste mined in the final pit design. Waste haul
distances were also estimated to adjust the waste mining costs for the operation.
The mine plan targeted 12.8 Mt in the year 2018 and average 14.8 Mt for rest of the mine life
except for the last year. A summary of the LOM plan physical quantities and qualities are shown
in the Table 8.1 below. The yearly pit and waste dump positions are included under Appendix G.
Table 8.1 – Life of Mine Schedule
Description Unit 2017 2018 2019 2020 2021 2022 2023 Total
Physical Quantities
Total Waste Mbcm 21.7 50.5 52.7 52.7 52.7 52.7 11.6 294.4
ROM Coal Mt 5.6 12.8 15.4 15.1 14.6 14.0 7.8 85.2
Strip Ratio bcm : t 3.9 3.9 3.4 3.5 3.6 3.8 1.5 3.5
Product Qualities
Total Moisture % ar 35.5 35.2 35.2 35.2 34.7 34.9 34.8 35.0
Inherent Moisture % adb 15.7 16.6 19.5 18.5 17.9 17.8 17.9 17.9
Ash % adb 4.1 4.2 4.1 4.2 4.2 4.1 4.1 4.1
Volatile Matter % adb 41.6 41.0 39.5 39.9 39.7 40.6 40.0 40.2
Fixed Carbon % adb 37.4 38.3 36.1 36.9 37.6 37.6 37.9 37.3
Total Sulphur % adb 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Caloric Value (arb) Kcal/Kg 4,130 4,128 4,140 4,197 4,260 4,286 4,265 4,204
Relative Density (arb) t/m3 1.25 1.26 1.26 1.27 1.26 1.27 1.27 1.26
Note: Year 2017 has been reported only from June 2017 to December 2017
9. COAL LOGISTICS
The Project has hauled and shipped more than 8 Mt between December 2015 and May 2017.
The logistics for coal is considered to be very convenient for the Project. The coal is cleaned and
mined using small excavators (40 t) and hauled using rigid body off-highway trucks (30 t) directly
to a ROM stockpile located at the port at a distance of about 17.5 km from the mine. The coal
trucks first use the mine haul roads from the pit to the existing PT Toudano Mandiri Abadi (TMA)
coal toll road. This is a privately owned coal haul road between the Project and port area. This
road is available for hauling coal on a USD/t basis. Coal from the pit use this haul road up to the
ROM stockpile area near the STU port. All the coal trucks are weighed through a 50 t weigh-
bridge before entering the ROM stockpile. Coal dumped to the ROM stockpile is rehandled into
feeder hoppers by a fleet of wheel loaders and dump trucks depending on the barge allocation
schedule. The coal from the hopper is crushed to – 50 mm product through primary and
secondary crusher systems and finally loaded into 300 ft. (8000 t) barges through bulk loading
conveyors (BLC).
A diagram representing the coal chain from the pit to port is shown in Figure 9.1. A map showing
the location of the infrastructure location, coal haul road and port area is shown in Figure 9.2.
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Figure 9.1 Coal Logistics Diagram
S1708—6th July 2017

A-57
LEGEND
Project
Other Concessions
Road
PT Grand Anugrah Jaya Hauling

PT Prolindo Cipta Nusantara
Provincial
Hauling TMA
nfrastructure
Port
nder Pass
PT S NGA DANA JA A
PT Deky Kreasi Mandiri
PT saha Baratama Jesindo
PT TANAH B MB RESO RCES

PT Cahaya Alam Sejahtera
CV Mitra Anugerah Sejahtera
Ha u
PT Tantra Mining Development
ngli
Roa
dTA
nderpass T A
MA
a dT
Ro
ing
ul
Ha
15
km
km
nderpass TMA
1
nderpass B B
Bunati Anchorage
Jala
n Pr
ovin
Satui Anchorage si
Port Stockpile Area
AT Port
T A Port
B B Port
B R PO RT
BBC Port

2 1 0 2 Com bined JORC Reser ve Statem ent
Kilometers
Map of nfrastructure and Coal Logisitics
Figure No.
www.smgc.co.id Design CE 22/ 06/ 17 Scale 1:50,000 Paper A4 L
+ 622157935968 .2
Drawn CE 22/ 06/ 17 File S1708_logis ic_a4_SDJ_01.mxd
A-58
10. INFRASTRUCTURE
Operations have commenced within the Project area and all necessary infrastructures are
already in place. This includes the following:
Mining contractors Workshop and Site Office
Mining Contractor’s Camp for 350 People
Coal Haul Road to the Port – This is a third party road available on rental basis
Port Stockpile and Barge Loading facilities
- STU Port – This is a third party port used by the Project on rental basis. The
capacity of this port is 2,000 tph which equates to approximately 12 Mtpa
- BIR Port - This is also a third party port used by the Project on rental basis. The
capacity of this port is 600 tph which equates to approximately 3.6 Mtpa
In SMGC’s opinion, the available infrastructure sufficient to support the current and the future
mining activities following the existing Life of Mine plan. However, in order to ship approximately
15 Mt, it would need both the STU and BIR port available to the Project at the fullest capacity.
Figure 10.1 to Figure 10.7 demonstrates the existing infrastructure in the Project area.
Figure 10.1 – Mining Contractor’s Office
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Figure 10.2 – Mining Contractor’s Workshop
Figure 10.3 – The Owner’s Office and Camp
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Figure 10.4 – The Coal Haul Road
Figure 10.5 – The Port Stockpile
S1708—6th July 2017

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Figure 10.6 – The STU Port
Addition of 1000 tph barge

loading capacity
Figure 10.7 – The BIR Port
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11. MARKETING ASSESSMENT
11.1 SALES PRICE

After a long trend of falling prices the global thermal coal price indexes have recovered sharply in
the second half of 2016. The Indonesia benchmark price (HBA) is not an exception in this case.
However, there are still sufficient volatilities in the seaborne thermal coal market which prevents
accurate prediction of forward coal prices.
In this current context, SMGC has developed a regression formula based on the DJMPB –
ESDM, Indonesia Benchmark coal sales prices and estimated the prices for the Project’s coal in
real terms for the purpose of creating an economic model to examine the viability of the Project.
The prices assumed in this study are intended strictly for this purpose only and shall in no way be
construed to constitute the basis for a valuation of the Project. While these prices are considered
to be reasonable for the purpose of this study and represent one possible future outcome; it must
be noted that forward prices are influenced by a large number of factors which cannot be
controlled nor accurately predicted. It is likely that actual future coal prices will be significantly
different from these assumptions (see Figure 11.1 and Table 11.1).
Figure 11.1 – Indonesian Benchmark Sales Prices
Table 11.1 – The Project’s Coal Prices
Descripton Units Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

ROMT Ktonne 5,600 12,800 15,400 15,100 14,600 14,000 7,800
CVGAR Kcal/Kg 4,130 4,128 4,140 4,197 4,260 4,286 4,265
TM (%) 35.5 35.2 35.2 35.2 34.7 34.9 34.8
TS (%) 0.20 0.20 0.20 0.20 0.20 0.20 0.20
Ash (%) 4.1 4.2 4.1 4.2 4.2 4.1 4.1
The Project Coal Price
USD/tonne 38.70 38.85 39.01 39.61 40.64 40.83 40.66
(Real)
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11.2 MARKETING REGULATORY ISSUES

While SMGC does not see any significant issues with marketing this type of coal in the longer
term, there are a number of issues with the new Indonesian mining law (Law on Mineral and Coal
Mining No. 4 of 2009) and associated regulations that have the potential to affect marketing and
selling of coal from coal concessions. The actual implementation of this aspect of the law is still
unclear and many holders of these contracts are currently in negotiation with the Indonesian
government regarding this issue.
A number of aspects of the new law that may affect the marketing of coal from the Project are
discussed in this section.
Domestic Marketing Obligation
In order to secure coal supply for domestic use, the new mining law allows for a Domestic Market
Obligation (DMO) where the central government is able to control the production and export of
mining products. Regulation No. 34 of 2009 issued by the Ministry of Energy and Mineral
Resources (MEMR) detailed the procedures for the DMO.
The regulation states that the DMO for each concession holder is to be set on an annual basis by
the MEMR based on the demands of domestic consumers. To qualify as domestic consumers,
consumers must be parties who will actually use the coal as raw material or fuel i.e. they must be
end users and not intermediaries such as coal traders.
On the basis of this above regulation the Ministry of Energy and Mineral Resources (ESDM) has
issued a letter to the Project authority supporting their application for an IPPKH permit for the
residual 16.05 ha area under HPK forest category at the west side of the SDJ concession. This
means that the Project has to supply a part of their annual coal production to fulfil the domestic
power needs of Republic of Indonesia. However, this does not have any material impact on the
financial viability of the Project as the HPB prices have improved recently and there is not much
difference between domestic and international prices of this quality coal.
Minimum Pricing Regulation
The Indonesian government has regulated benchmark prices for coal and other minerals to serve
as the floor price for government royalty calculations. If actual coal sales are higher than the
benchmark price, then the royalty is based on the actual price; whereas if the actual price is
lower than the benchmark price then the benchmark price is used to calculate royalty. The
requirements are detailed in Regulation No. 17 of 2010 issued by the MEMR. The benchmark
price is applicable to both long term sales and spot sales.
At the current time the government’s approach is that the benchmark price is only to be used to
calculate royalties for the purpose of preventing transfer pricing. However it is possible under the
new mining law that regulations could be issued such that benchmark prices would determine the
minimum price for actual sales, which may affect marketing and sales.
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12. FINANCIAL EVALUATION

GERL is an operating mine and as such has existing contracts and forward sales agreements
that are commercially sensitive (Refer to the Table 1 Checklist of Assessment and Reporting
Criteria in JORC 2012 code). SMGC has constructed an economic model for the Project to
confirm that it is economically feasible after the application of all modifying factors.
12.1 EXCHANGE RATE

The Exchange rate between US dollar (USD) and Indonesian Rupiah (IDR) has fluctuated
significantly over the last 10 years (Figure 12.1). For the purpose of this financial evaluation
SMGC has assumed a long term (LT) exchange rate of 13,200 for converting US Dollar to
Indonesian Rupiah (IDR). In SMGC’s opinion the recent spikes in the USD/IDR exchange rate is
not going to continue at the same level in the longer term and hence cannot be considered as a
LT conversion rate for this analysis.K
Figure 12.1 – Fluctuation in Exchange Rate
Source: www.xe.com
12.2 CAPITAL COST

All of the required infrastructure for the Project is in place as described under Section 10.
Exploration activities for resource extension are no longer required. There are no known major
permits or technical studies required in the future for this Project. Therefore all capital costs are
assumed to have been incurred for this Project and there are no major capital expenditure
anticipated in future as well.
However, SMGC has considered mine closure costs at about USD 7,000 per hectare for a total
of 495 Ha, incurred in the last two years of the mine life.
Given the short mine life of 6 years, no allowance has been included for ongoing and
replacement capital expenditure for the operation.
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12.3 OPERATING COSTS
12.3.1 Unit Rates

A set of unit rates (Table 12.1) were derived by SMGC for the Project based on data supplied by
GERL and supplemented with the SMGC knowledge database. These unit rates were compared
against actual costs from similar active operations in nearby areas and considered to be
reasonable and suitable for the purpose of this study.
Table 12.1 – Unit Rates
Item Unit Base Rate VAT

Topsoil USD / bcm 2.18 Yes
Waste Mining USD / bcm 2.18 Yes
Waste Overhaul above 1 Km USD / bcm / 100 m 0.050 Yes
Coal Cleaning and Mining USD / tonne 0.97 Yes
Coal Haulage to Port Stockpile USD / tonne km 0.146 Yes
Coal Haulage Fee USD / tonne 1.14 Yes
Crushing, Port Stockpile & Barge loading USD / tonne 5.13 Yes
Barging & Stevedoring USD / tonne 2.58 Yes
Overheads (Project personnel Only) USD / tonne 0.10 No
Dewatering and Water Treatment USD per annum 500,000 No
Land Fee USD / tonne 3.0 No
VAT % VAT costs 10 %
Operating Cost Contingency % All Costs 10 %
12.3.2 Royalties and Government Costs

Tenure for the Project is held under two IUP Production (IUP Operasi Produksi) licenses which
has a royalty rate that is dependent on the air dried energy of the coal as sold. In the case of this
coal, the Royalty Rate is expected to be 5 % of the total revenue for the average coal produced
as the air dried energy is greater than 5,100 kcal/kg and less than 6,100 kcal/kg.
An issue that should be noted regarding royalty costs for the Project is the government regulation
regarding benchmark prices for coal and other minerals that serve as the floor price for
government royalty calculations. If actual coal sales prices are higher than the benchmark price,
then the royalty is calculated based on the actual price; whereas if the actual price is lower than
the benchmark price then the benchmark price is used to calculate royalty. The requirements are
detailed in Regulation No. 17/2010 issued by the MEMR. The benchmark price is applicable to
both long term sales and spot sales.
The benchmark price is specified as the price received FOB mother vessel. The current yearly
coal prices used in the financial analysis are also estimated on the same basis.
12.4 FINANCIAL SUMMARY

Using the capital costs, operating costs and sales price assumptions combined with the
Reserves described in Section 14, the financial model showed the Project to be economically
robust.
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13. RISKS IN ESTIMATION OF RESERVES

Uncertainties in geological, geotechnical, environmental, economic or other major areas
associated to a mining project can significantly impact on the Reserve classification. SMGC is
not aware of any other environmental, legal, marketing, social or government factors which may
hinder the economic realisation of the Coal Reserves other than those disclosed in this report.
Significant areas of uncertainty in the Coal Resources and the modifying factors applied to the
Coal Reserves are discussed in this section.
13.1 MUTUAL MINING ARRANGEMENT

This Reserve statement is highly dependent upon the mutual mining and dumping arrangement
between the Project and its eastern neighbour - AJE. This arrangement allows the Project to
mine and dump certain amount of waste into this concession. Additionally it assumes that AJE
will follow the current life of mine plan so that the backfilling strategy can be successfully
implemented for the Project to avoid any hindrance to smooth mining operation.
This mutual understanding is supported by a signed agreement between the concerned parties.
SMGC has been given copy of the agreement which is included under Appendix H. Any deviation
from this arrangement may impact on the underlying Life of Mine plan which in turn will alter the
outcome of this current Reserve Statement.
13.2 LEGAL CONSTRAINTS

The current activities of the Project are restricted by the existing IPPKH boundary for a total area
of around 68.5 Ha and there is no legal issue with the same. However, in order to adhere to the
underlying life of mine plan the Project needs to soon enter into the residual 201.6 ha of HPK
area (107.3 ha at the west and 94.3 ha at the east) and additional IPPKH permits are required for
the same as discussed in section 2.4.1. All the IPPKH approval processes are currently in
advanced stages and SMGC does not see any issue which prevents the Project from obtaining
the same. However, the timing of obtaining these permits will have a direct impact on the current
strategy of the underlying Life of Mine plan and that in turn may alter the outcome of this Reserve
statement.
13.3 GEOLOGICAL FACTORS

While no geological structures or coal washouts have been observed in the exploration to date, it
is still possible that some structures exist in the deposit. These potential structures are
considered unlikely to have a significant impact on the volumes of coal and waste in the deposit;
however it is possible that potential structures could have implications for the stability of pit walls,
particularly in the deeper parts of the pit. SMGC recommends that geotechnical mapping and
monitoring systems are put in place from the commencement of mining and that any structure
identified in the mining operation is analysed and the impact on pit wall stability analysed
immediately.
13.4 SURFACE CONSTRAINTS

Mining operations are constrained by the concession boundaries. Other constraints that were
used to define the Project were limits of exploration drilling. No other significant surface feature
exists that would further constrain mining activities.
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A-67
13.5 SURFACE WATER MANAGEMENT

Consideration of surface water runoff is critical for mining operations in Indonesia. Key issues
that need to be managed include:
Surface water flows onto the lease and the associated impact on operations
Impacts that the mining operation will have on water flows outside the lease boundaries
The topography, catchment areas and water flows around the concession were mapped and
analysed using both the LIDAR topographic survey data as well as SRTM topographic data. The
area to the west side of the current pit inside the Project area is of higher elevation compared to
that at the east. Thus, the natural direction of surface water flow is towards the concession in to
the pit areas.
The major water channels and water flows that will have a significant impact on the Project are
shown in Figure 13.1. There are 2 areas of the pit where water flows will have a significant
impact of operations:
Northern Water Channel: a seasonal water stream flows through the concession and the
northern part of the pit area, as shown in Figure 13.1. While this is expected to have water flows
year round with some seasonal flooding, it is not considered to be a major one and thus it should
be possible to divert the same with diversion ditches as shown in the Figure 13.1.
Southern Water Channel: this is also a seasonal water channel which combines a number of
catchments in the southern part of the pit. Some diversions will be required at the later stages of
the LOM plan.
SMGC is of the opinion that there are no other catchments or rivers that will have a material
impact on the Reserve Estimate; however it will be necessary to construct water diversions and
sequence waste dumping to ensure that surface water run-off does not enter the pit. The
Project’s engineering department has completed a water management plan in this regard. The
major catchment areas and diversion ditches have been considered in the said plan. The mining
sequence chosen for the deposit will have a significant impact on water management
requirements, although differences in water management costs between options are likely to be
small compared to the cost of moving waste. Water management costs are accounted for in the
operating costs of the mine and are considered sufficient for the purpose of this Reserve
Statement.
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13.6 ENVIRONMENTAL FACTORS

SMGC does not see any safety, environmental or community issues that are considered to have
a material impact on this Reserve estimate or will affect the performance of the operation in the
longer term. It should be noted that this study does not constitute a detailed due diligence of
environmental and community issues. SMGC cannot provide any guarantee or warranty that
significant environmental or community issues will not affect the operation in the future
13.7 GEOTECHNICAL FACTORS

Two complete geotechnical studies were carried out by PT Quantus Consultants Indonesia for
the SDJ and TBR concessions. The reports were made available to SMGC. SMGC has followed
the geotechnical guidelines while reviewing the final pit design provided by GERL.
Procedures including dimensions, bunding and compaction are being put in place based on
these geotechnical recommendations. The implementation of these procedures will need to be
continuously monitored to ensure compliance. Ongoing condition monitoring, including
groundwater pressure in the lowwall is also recommended.
SMGC is of the opinion that geotechnical issues are being managed adequately and so do not
preclude the estimation of Coal Reseves in the concession.
13.8 OTHER RISK FACTORS

SMGC is not aware of any other social, political or government factors which may hinder the
economic extraction of the Coal Reserves other than those disclosed in this report.
13.9 CLASSIFICATION
The JORC Code allows a Measured Resource to be accepted as a Proved Reserve and an
Indicated Resource to be accepted as a Probable Reserve. To convert a Resource to a Reserve
it must be demonstrated that extraction could reasonably be justified after applying reasonable
assumptions. A level of uncertainty in any one or more of the Modifying Factors may result in a
Measured Resource being converted to a Probable Reserve. A high level of uncertainty in any
one or more of the Modifying Factors may preclude the conversion of the affected Resource to a
Reserve.
In the opinion of SMGC the uncertainties in most of the modifying factors applied to the Coal
Reserves are not sufficiently material to prevent the classification of areas deemed Measured
Resources to be areas of Proved Reserves for the purpose of this study. Similarly in the opinion
of SMGC the uncertainties in the modifying factors are also not sufficiently material to prevent the
classification of areas deemed Indicated Resources to be areas of Probable Reserve.
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14. STATEMENT OF COAL RESERVES

The Statement of Coal Reserves has been prepared in accordance with the 2012 Edition of the
JORC Code. A summary of coal Reserves are shown under Table 14.1 and Table 14.2.
A detailed seam by seam break down of the same is shown under Table 14.3 to Table 14.6.
The Reserves are stated as of 19th May 2017.
Table 14.1 – Summary of Coal Reserves as of 19th May 2017

Proved +
Total Total Incremental Proved Probable
Probable
Reserve Classes Stripping
Waste Coal Coal Coal Coal
Ratio
In situ Coal Reserve 290.4 92.0 3.2 71.8 13.6 85.4
Mineable Coal Reserve 291.3 90.9 3.2 71.8 13.4 85.2

Run-of Mine Coal Reserve 294.4 85.2 3.5 68.0 12.4 80.4
Total Marketable Coal
294.4 85.2 3.5 68.0 12.4 80.4
Reserve
Table 14.2 – Summary of Coal Reserves by Concession
Total Total Incremental Proved Probable Proved + Probable

Description Waste Coal Stripping Ratio Coal Coal Coal
SDJ 125.2 37.9 3.3 28.1 9.2 37.3
TBR 169.2 47.3 3.6 40.0 3.2 43.2
Project 294.4 85.2 3.5 68.0 12.4 80.4
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Table 14.3 – In situ Coal Reserves as of 19th May 2017
Total Total RD TS VM IM TM Ash GAR Proved Probable Proved + Probable
Seam Waste Coal arb adb adb adb arb adb arb Coal Coal Coal
(Mbcm) (Mt) (t/m3) (%) (%) (%) (%) (%) (Kcal/Kg) (Mt) (Mt) (Mt)
A6B2 35.7 2.5 1.27 0.17 39.6 19.9 35.0 3.7 4,305 0.0 0.0 0.0
A6B1 1.3 1.1 1.27 0.34 36.6 27.8 34.5 3.6 4,254 0.0 0.0 0.0
A6A4 12.6 0.6 1.28 0.25 35.5 27.0 36.4 4.7 4,145 0.0 0.0 0.0
A6A2 37.0 0.8 1.3 0.28 39.7 16.5 32.5 10.8 4,061 0.0 0.0 0.0
A6A1 2.5 0.2 1.3 0.28 39.7 16.5 32.5 10.8 4,061 0.0 0.0 0.0
A5D2 119.2 20.1 1.26 0.17 40.8 17.1 35.2 3.8 4,193 19.2 0.9 20.1
A5D1 2.0 4.0 1.27 0.17 40.3 17.9 34.5 4.6 4,222 3.2 0.7 4.0
A-72
A5C2 48.7 8.6 1.26 0.36 40.5 17.6 35.0 4.8 4,203 7.0 1.3 8.3
A5C1 0.7 1.0 1.27 0.31 40.4 17.6 34.3 8.4 4,208 0.4 0.5 0.9
A5B2 24.4 37.1 1.25 0.25 40.2 17.8 35.2 4.1 4,218 32.0 5.2 37.1
A5B1 1.5 13.1 1.26 0.16 39.2 19.1 34.7 3.5 4,254 9.2 3.9 13.1
A5A2 3.8 2.4 1.24 0.16 43.5 13.8 35.3 5.1 4,171 0.8 1.0 1.8
A5A1 0.9 0.4 1.27 0.17 40.3 13.3 36.0 9.9 3,794 0.1 0.2 0.3
All 290.4 92.0 1.26 0.22 40.2 17.9 35.0 4.2 4,213 71.8 13.6 85.4
th
S1708—6 July 2017
Table 14.4 – Mineable Coal Reserves as of 19th May 2017
A6B2 34.6 2.4 1.27 0.17 39.6 19.9 35.0 3.7 4,305 0.0 0.0 0.0
A6B1 1.1 1.0 1.27 0.34 36.6 27.8 34.5 3.6 4,254 0.0 0.0 0.0
A6A4 7.3 0.5 1.28 0.25 35.5 27.0 36.4 4.7 4,145 0.0 0.0 0.0
A6A2 32.5 0.6 1.3 0.28 39.7 16.5 32.5 10.8 4,061 0.0 0.0 0.0
A6A1 2.7 0.1 1.3 0.28 39.7 16.5 32.5 10.8 4,061 0.0 0.0 0.0
A5D2 130.4 20.1 1.26 0.17 40.8 17.1 35.2 3.8 4,193 19.2 0.8 20.1
A5D1 1.8 4.0 1.27 0.17 40.3 17.9 34.5 4.6 4,222 3.2 0.7 3.9
A-73
A5C2 45.9 8.5 1.26 0.37 40.5 17.6 35.0 4.8 4,203 7.0 1.2 8.2
A5C1 0.6 0.9 1.27 0.29 40.3 17.8 34.2 8.5 4,225 0.4 0.5 0.8
A5B2 27.7 37.1 1.25 0.25 40.2 17.8 35.2 4.1 4,218 31.9 5.2 37.1
A5B1 1.7 13.1 1.26 0.16 39.2 19.1 34.7 3.5 4,254 9.2 3.9 13.0
A5A2 2.1 2.3 1.24 0.16 43.5 13.8 35.2 5.1 4,173 0.8 1.0 1.7
A5A1 2.8 0.2 1.27 0.16 40.2 13.3 36.2 10.8 3,727 0.1 0.1 0.2
All 291.3 90.9 1.26 0.22 40.2 17.9 35.0 4.2 4,215 71.8 13.4 85.2
th
S1708—6 July 2017
Table 14.5 – Run-of Mine Coal Reserves as of 19th May 2017
A6B2 34.7 2.1 1.27 0.17 39.6 19.9 35.0 4.3 4,274 0.0 0.0 0.0
A6B1 1.2 0.9 1.28 0.34 36.6 27.8 34.5 3.6 4,202 0.0 0.0 0.0
A6A4 7.4 0.4 1.29 0.25 35.5 27.0 36.4 4.7 4,066 0.0 0.0 0.0
A6A2 32.7 0.5 1.31 0.28 39.7 16.5 32.5 10.8 4,006 0.0 0.0 0.0
A6A1 2.8 0.1 1.32 0.28 39.7 16.5 32.5 10.8 3,939 0.0 0.0 0.0
A5D2 130.7 19.0 1.26 0.17 40.8 17.1 35.2 3.8 4,183 18.2 0.8 19.0
A5D1 2.1 3.6 1.28 0.17 40.3 17.9 34.5 4.5 4,206 3.0 0.6 3.6
A-74
A5C2 46.4 7.8 1.27 0.37 40.5 17.7 35.0 4.8 4,184 6.4 1.1 7.5
A5C1 0.8 0.7 1.28 0.29 40.3 17.9 34.2 8.7 4,180 0.3 0.4 0.7
A5B2 28.2 35.6 1.25 0.25 40.2 17.8 35.2 4.1 4,211 30.6 4.9 35.6
A5B1 1.9 12.5 1.27 0.16 39.2 19.1 34.7 3.5 4,248 8.8 3.7 12.5
A5A2 2.5 1.9 1.25 0.16 43.5 13.8 35.3 5.1 4,122 0.6 0.8 1.4
A5A1 3.0 0.2 1.28 0.16 40.1 13.2 36.2 10.9 3,642 0.1 0.1 0.2
All 294.4 85.2 1.26 0.22 40.2 17.9 35.0 4.1 4,204 68.0 12.4 80.4
th
S1708—6 July 2017
Table 14.6 – Marketable Coal Reserves as of 19th May 2017
A6B2 34.7 2.1 1.27 0.17 39.6 19.9 35.0 4.3 4,274 0.0 0.0 0.0
A6B1 1.2 0.9 1.28 0.34 36.6 27.8 34.5 3.6 4,202 0.0 0.0 0.0
A6A4 7.4 0.4 1.29 0.25 35.5 27.0 36.4 4.7 4,066 0.0 0.0 0.0
A6A2 32.7 0.5 1.31 0.28 39.7 16.5 32.5 10.8 4,006 0.0 0.0 0.0
A6A1 2.8 0.1 1.32 0.28 39.7 16.5 32.5 10.8 3,939 0.0 0.0 0.0
A5D2 130.7 19.0 1.26 0.17 40.8 17.1 35.2 3.8 4,183 18.2 0.8 19.0
A5D1 2.1 3.6 1.28 0.17 40.3 17.9 34.5 4.5 4,206 3.0 0.6 3.6
A-75
A5C2 46.4 7.8 1.27 0.37 40.5 17.7 35.0 4.8 4,184 6.4 1.1 7.5
A5C1 0.8 0.7 1.28 0.29 40.3 17.9 34.2 8.7 4,180 0.3 0.4 0.7
A5B2 28.2 35.6 1.25 0.25 40.2 17.8 35.2 4.1 4,211 30.6 4.9 35.6
A5B1 1.9 12.5 1.27 0.16 39.2 19.1 34.7 3.5 4,248 8.8 3.7 12.5
A5A2 2.5 1.9 1.25 0.16 43.5 13.8 35.3 5.1 4,122 0.6 0.8 1.4
A5A1 3.0 0.2 1.28 0.16 40.1 13.2 36.2 10.9 3,642 0.1 0.1 0.2
All 294.4 85.2 1.26 0.22 40.2 17.9 35.0 4.1 4,204 68.0 12.4 80.4
th
S1708—6 July 2017
14.1 COMPARISON WITH PREVIOUS ESTIMATES

Two earlier estimates of Reserve were made for SDJ and TBR which were dated as of 25th
December 2016 and 31st May 2016 respectively. The previous Reserve estimate is shown in
comparison to this estimate in Table 14.7.
Table 14.7 – Comparison to Previous Reserve Estimate
Proved Probable Proved and Probable

Description
(Mt) (Mt) (Mt) Formula
Previous SDJ Reserve 27.8 8.2 36.0 a
Previous TBR Reserve 38.2 3.4 41.6 b
Total Previous Estimate 66.0 11.6 77.6 C=a+b
Total Current Estimate 68.0 12.4 80.4 D
Difference 2.1 0.8 2.8 E=D-C
The changes in Reserves inside the Project area are mainly attributable to the following:
Excavation of 3.2 Mt of coal during the period between December 2016 and 19 May 2017
Addition of Reserve in certain areas following the change in the Pit design (Figure 14.1)
Minor differences between the geological models.
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15. COMPETENT PERSON STATEMENT

The Reserve report was based on data as of the 19th May 2017 and has been prepared in
accordance with the JORC Code.
The information in this report that relates to Coal Reserves of the Project and is based upon
information compiled by Mr. Joyanta Chakraborty, who is a Member of the Australasian Institute
of Mining and Metallurgy. Mr. Chakraborty is employed as a Sr. Mining Engineer by SMG
Consultants. He has sufficient experience which is relevant to the style of mineralisation and type
of deposit under consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2012 JORC Code. Mr. Chakraborty has over 15 years’
experience in the planning and mining of coal deposits. Mr. Chakraborty consents to the
inclusion in the report of the matters based upon this information in the form and context in which
it appears.
The Reserves Report must only be disclosed in the form in which it appears and may only be
presented in its entirety. This report must not be released for public reporting purposes.
Extraction of selected text from this report is only permitted with the written consent of PT SMG
Consultants.
Joyanta Chakraborty
BE Mining, MAusIMM, CPI
This document was checked as part SMGC’s peer review process. Peer review was undertaken
by Mr. Kim Knerr who is also a Member of the Australasian Institute of Mining and Metallurgy.
Mr. Knerr is employed as a Principal Engineer by SMGC. He has sufficient experience which is
relevant to the style of mineralisation and type of deposit under consideration and to the activity
which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the
“Australasian Code for Reporting of Mineral Resources and Ore Reserves”.
Kim Knerr
B.Sc (Geological Engineering), MAusIMM
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Appendix A – Consent Template
[Letterhead of Competent Person or Competent Person’s employer]
Competent Person’s Consent Form

Pursuant to the requirements of ASX Listing Rules 5.6, 5.22 and 5.24 and
Clause 9 of the JORC Code 2012 Edition (Written Consent Statement)
Report name
(Insert name or heading of Report to be publicly released) (‘Report’)
(Insert name of company releasing the Report)
(Insert name of the deposit to which the Report refers)
If there is insufficient space, complete the following sheet and sign it in the same manner as this
original sheet.
(Date of Report)
S1708-6TH July 2017

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Statement
I/We,
(Insert full name(s))
confirm that I am the Competent Person for the Report and:

I have read and understood the requirements of the 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012
Edition).
I am a Competent Person as defined by the JORC Code, 2012 Edition, having five years’
experience that is relevant to the style of mineralisation and type of deposit described in the
Report, and to the activity for which I am accepting responsibility.
I am a Member or Fellow of The Australasian Institute of Mining and Metallurgy or the Australian
Institute of Geoscientists or a ‘Recognised Professional Organisation’ (RPO) included in a list
promulgated by ASX from time to time.
I have reviewed the Report to which this Consent Statement applies.
I am a full time employee of
(Insert company name)
Or
I/We am a consultant working for
and have been engaged by
to prepare the documentation for
(Insert deposit name)
on which the Report is based, for the period ended
(Insert date of Resource/Reserve statement)
I have disclosed to the reporting company the full nature of the relationship between myself and the
company, including any issue that could be perceived by investors as a conflict of interest.
I verify that the Report is based on and fairly and accurately reflects in the form and context in which it
appears, the information in my supporting documentation relating to Exploration Targets, Exploration
Results, Mineral Resources and/or Ore Reserves (select as appropriate).
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Consent
I consent to the release of the Report and this Consent Statement by the directors of:
(Insert reporting company name)
Signature of Competent Person: Date:
Professional Membership: Membership Number

(insert organisation name)
Signature of Witness Print Witness Name and Residence

(eg town/suburb)
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Additional deposits covered by the Report for which the Competent Person signing this form is
accepting responsibility:
Additional Reports related to the deposit for which the Competent Person signing this form is
accepting responsibility:
Signature of Competent Person: Date:
Professional Membership: Membership Number

(insert organisation name)
Signature of Witness Print Witness Name and Residence
(eg town/suburb)
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Appendix B – Contributors to Report
Joyanta Chakraborty – Senior Mining Mining Engineer

Qualifications: BE (Mining), MAusIMM
Contribution: Overall project supervision, engineering, cross checks, report writing
Competent Person for Coal Reserves
Experience: Joy has over 15 years of experience in open cut coal mining in the
areas of operations, reserves evaluation, pit optimisation, mine design,
equipment selection, mine scheduling, project costing and economics.
Joy has worked 4 years in India and for the last 11 years he is working
in Indonesia.
Kim Knerr – Senior Mining Mining Engineer

Qualifications: BE (Mining - Hons)
MAusIMM
Contribution: Peer review
Experience: Kim has 30 years of experience in open cut mining operations in
globally in delivering strategic results in the minerals industry. He has
completed Resource and Reserves analyses under JORC guidelines
for bankable reviews and feasibility studies on a wide range of
commodities including coal base and precious metals.
Tri Ratna Arum – Senior Mining Engineer

Qualifications: BE (Mining)
Contribution: Reserve database, assistance in cross checks and report preparation
Experience: Tri Ratna Arum is a mining engineer with over 9 years of experience in
coal mining in Indonesia. Her experience includes open cut mine
planning and design, reserves evaluation, pit optimisation, mine
scheduling, backfill design and planning, project costing and
economics.
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Appendix C – JORC Table 1
Table 1 Checklist of Assessment and Reporting Criteria

JORC TABLE 1
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria Explanation
Sampling As discussed in Section 3.5 of Combined JORC resource Statement PT Sungai

techniques Danau Jaya and PT Tanah Bumbu Resources – June 2017.
Drilling techniques As discussed in Section 3.4 of Combined JORC resource Statement PT Sungai
Danau Jaya and PT Tanah Bumbu Resources – June 2017.
Drill sample As discussed in Section 3.4 of Combined JORC resource Statement PT Sungai
recovery Danau Jaya and PT Tanah Bumbu Resources – June 2017.
Logging As discussed in Section 3.6 of Combined JORC resource Statement PT Sungai

Danau Jaya and PT Tanah Bumbu Resources – June 2017.
Sub-sampling As discussed in Section 3.5 and Table 3.3 and Figure 3.3 of Combined JORC
techniques and resource Statement PT Sungai Danau Jaya and PT Tanah Bumbu Resources –
sample June 2017.
preparation
Quality of assay As discussed in Section 3.7 and Table 3.5 of Combined JORC resource Statement PT
data and Sungai Danau Jaya and PT Tanah Bumbu Resources – June 2017.
laboratory tests
Verification of As discussed in Section 3.5 and Section 3.7 of Combined JORC resource Statement
sampling and PT Sungai Danau Jaya and PT Tanah Bumbu Resources – June 2017
assaying Visual inspection on site.
Location of data As discussed in Section 3.3 of SDJ JORC Resource Statement- July 2014.
points Table 3.1 of Combined JORC resource Statement PT Sungai Danau Jaya and PT
Tanah Bumbu Resources – June 2017.
Data spacing and As discussed in Section 3.4. Borehole locations identified in Figure 3.2 as well as
distribution those used for estimation purposes in Appendix D of Combined JORC resource
Statement PT Sungai Danau Jaya and PT Tanah Bumbu Resources – June 2017.
Orientation of data All holes have been drilled vertically. Geological structure and local geology inclusive
in relation to of seam dip is described in Section 2.3 of Combined JORC resource Statement PT
geological Sungai Danau Jaya and PT Tanah Bumbu Resources – June 2017.
structure
Sample security Visual inspection of sample collection and batch creation. Samples were transported
to the laboratory by GEMS personnel/contractors.
Audits or reviews A review of the borehole database was made before modelling was undertaken (See
Section 5.1 of Combined JORC resource Statement PT Sungai Danau Jaya and PT
Tanah Bumbu Resources – June 2017).
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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)
Mineral As discussed in Section 1.3 of Combined JORC resource Statement PT Sungai Danau Jaya
tenement and and PT Tanah Bumbu Resources – June 2017.
land tenure
status
Exploration As discussed in Section 3.1 of Combined JORC resource Statement PT Sungai Danau
done by other Jaya and PT Tanah Bumbu Resources – June 2017.
parties
Geology As discussed in Section 2 of Combined JORC resource Statement PT Sungai Danau Jaya
and PT Tanah Bumbu Resources – June 2017.
Borehole As discussed in Section 3 of Combined JORC resource Statement PT Sungai Danau Jaya
Information and PT Tanah Bumbu Resources – June 2017. All boreholes exist in a validated Minex
database which includes lithological, quality and hole survey information as discussed in
Section 4.2 of Combined JORC resource Statement PT Sungai Danau Jaya and PT Tanah
Bumbu Resources – June 2017.
Data Sample methodology is discussed in section 3.5 of Combined JORC resource Statement PT
aggregation Sungai Danau Jaya and PT Tanah Bumbu Resources – June 2017. All samples have been
methods composited over the full seam thickness and reported using Minex software tools.
Relationship Down-hole lengths have been used in the modelling of the seams in Minex.
between
mineralisation
widths and
intercept
lengths
Diagrams All maps, tables and diagrams are identified in the Table of Contents of this report under the
headings “Tables”, “Figures” and “Appendices”.
Balanced All reporting has been done in a balanced and measured way and is discussed in Section
reporting 1.5 and Section 1.5.1 of Combined JORC resource Statement PT Sungai Danau Jaya and
PT Tanah Bumbu Resources – June 2017.
Other As discussed in Section 3.1 and Section 3.8 of Combined JORC resource Statement PT
substantive Sungai Danau Jaya and PT Tanah Bumbu Resources – June 2017.
exploration
data
Further work As discussed in Section 3.8 of Combined JORC resource Statement PT Sungai Danau Jaya
and PT Tanah Bumbu Resources – June 2017. Further work will be necessary to improve
the confidence levels of the deposits and understanding of the full seam stratigraphy. No
proposed exploration plan has been proposed in this report.
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Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)
Database As discussed in Section 5.1 of Combined JORC resource Statement PT Sungai Danau
integrity Jaya and PT Tanah Bumbu Resources – June 2017.
Site visits have been undertaken on numerous occasions by SMGC staff over the year to
Site visits
assist with geological exploration of the concession area.
As discussed in Section 4. and Section 6.2 of Combined JORC resource Statement PT

Geological Sungai Danau Jaya and PT Tanah Bumbu Resources – June 2017. The SDJ 3D geological
interpretation models have been created in Minex software and are considered to be an appropriate
interpretation of the dataset.
As discussed in Section 5.3 of Combined JORC resource Statement PT Sungai Danau

Dimensions
Jaya and PT Tanah Bumbu Resources – June 2017.
Estimation and
As discussed in Section 5 of Combined JORC resource Statement PT Sungai Danau Jaya
modelling
and PT Tanah Bumbu Resources – June 2017.
techniques
As discussed in Section 5.4 of Combined JORC resource Statement PT Sungai Danau

Moisture
Cut-off As discussed in Section 5.5 of Combined JORC resource Statement PT Sungai Danau
parameters Jaya and PT Tanah Bumbu Resources – June 2017.
Mining factors The SDJ area is not currently being mined but is assumed that it will be conducive to open
or assumptions pit excavation by truck and shovel methods.
Marketing
As discussed in Section 5.7.3 of Combined JORC resource Statement PT Sungai Danau
factors or
assumptions
Environmental
As discussed in Section 5.7.1 of Combined JORC resource Statement PT Sungai Danau
factors or
assumptions
As discussed in Section 5.8 and Section 5.9 of Combined JORC resource Statement PT
Relative density
Sungai Danau Jaya and PT Tanah Bumbu Resources – June 2017.
As discussed in Section 5 and particularly Section 5.8 of Combined JORC resource

Classification
Statement PT Sungai Danau Jaya and PT Tanah Bumbu Resources – June 2017.
Audits or No other Resource estimates have been conducted on this concession as far as SMGC is
reviews aware. All data provided to SMGC has been reviewed and checked for accuracy where
Discussion of
relative As discussed in Section 5.7of Combined JORC resource Statement PT Sungai Danau Jaya
accuracy/ and PT Tanah Bumbu Resources – June 2017.
confidence
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Section 4 Estimation and Reporting of Ore Reserves

(Criteria listed in section 1, and where relevant in sections 2 and 3,
also apply to this section.)
Mineral
Resource
Basis of the estimate is Combined JORC resource Statement PT Sungai Danau Jaya and
estimate for
PT Tanah Bumbu Resources – June 2017.
conversion to
Ore Reserves
Site visits have been undertaken on numerous occasions by SMGC staff over the year to
Site visits
assist with geological exploration of the concession area..
Study status The Project area is currently being mined by truck-shovel method.
Cut-off
Refer to the Section 7.7 in this report
parameters
Mining factors or
Refer to the Section 7.7 in this report
assumptions
Metallurgical
factors or Not Applicable to this Coal Reserves Estimate
assumptions
Environmental Not Applicable to this Coal Reserves Estimate
Infrastructure Refer to the Section 10 in this report
Costs Refer to the Section 12 in this report
Revenue factors Refer to the Section 11 in this report

Market
Refer to the Section 11 in this report
assessment
Economic Refer to the Section 12 in this report
Social Refer to the Section 13 in this report
Other Refer to the Section 13 in this report
Basis of the estimate is Combined JORC resource Statement PT Sungai Danau Jaya and
Classification
PT Tanah Bumbu Resources – June 2017
Audits or
This document has been checked as part of SMGC’s peer review process
reviews
Discussion of
relative
SMGC Representative has made a site visit in June 2014.
accuracy/
confidence
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Section 5 Estimation and Reporting of Diamonds and Other Gemstones

(Criteria listed in other relevant sections also apply to this section. Additional guidelines
are available in the ‘Guidelines for the Reporting of Diamond Exploration Results’ issued
by the Diamond Exploration Best Practices Committee established by the Canadian
Institute of Mining, Metallurgy and Petroleum.)
Indicator
Not Applicable to this Coal Reserve Estimate.
minerals
Source of
diamonds
Sample
collection
Sample
treatment
Carat Not Applicable to this Coal Reserve Estimate.
Sample grade Not Applicable to this Coal Reserve Estimate.
Reporting of
Exploration Not Applicable to this Coal Reserve Estimate.
Results
Grade
estimation for
reporting
Mineral
Resources and
Ore Reserves
Value
estimation
Security and
integrity
Classification Not Applicable to this Coal Reserve Estimate.
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Appendix 1 Generic Terms and Equivalents

Throughout the Code, certain words are used in a general sense when a more specific meaning
might be attached to them by particular commodity groups within the industry. In order to avoid
unnecessary duplication, a non-exclusive list of generic terms is tabulated below together with
other terms that may be regarded as synonymous for the purposes of this document.
Synonyms and Similar

Generic Term Intended Generalised Meaning
Terms
The Competent Person in general makes value judgments

assumption value judgments when making assumptions regarding information not fully
supported by test work.
Refer to the Clause 11 of the Code for the definition of a

Qualified Person Competent Person. Any reference in the Code to the singular
Competent
(Canada), Qualified (a Competent Person) includes a reference to the plural
Person
Competent Person (Chile) (Competent Persons). It is noted that reporting in accordance
with the Code is commonly a team effort.
The lowest grade, or quality, of mineralised material that

qualifies as economically mineable and available in a given
cut-off grade product specifications deposit. May be defined on the basis of economic evaluation,
or on physical or chemical attributes that define an
acceptable product specification.
Any physical or chemical measurement of the characteristics

quality, assay, analysis of the material of interest in samples or product. Note that the
grade (that is value returned by term quality has special meaning for diamonds and other
the analysis) gemstones. The units of measurement should be stated
when figures are reported.
Physical and/or chemical separation of constituents of

processing, interest from a larger mass of material. Methods employed to
metallurgy beneficiation, preparation, prepare a final marketable product from material as mined.
concentration Examples include screening, flotation, magnetic separation,
leaching, washing, roasting, etc.
Processing is generally regarded as broader than metallurgy

and may apply to non-metallic materials where the term
metallurgy would be inappropriate.
Any single mineral or combination of minerals occurring in a

type of deposit, ore mass, or deposit, of economic interest. The term is intended
mineralisation body, style of to cover all forms in which mineralisation might occur,
mineralisation. whether by class of deposit, mode of occurrence, genesis or
composition.
All activities related to extraction of metals, minerals and

gemstones from the earth whether surface or underground,
mining quarrying
and by any method (e.g. quarries, open cast, open cut,
solution mining, dredging, etc.).
‘Ore Reserves’ is preferred under the JORC Code but

‘Mineral Reserves’ is in common use in other countries and is
Ore Reserves Mineral Reserves
generally accepted. Other descriptors can be used to clarify
the meaning (e.g. Coal Reserves, Diamond Reserves, etc.).
S1708-6TH July 2017

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The percentage of material of interest that is extracted during

recovery yield mining and/or processing. A measure of mining or processing
efficiency.
An exploration or mineral development project that has or

could have a significant influence on the market value or
significant project material project
operations of the listed company, and/or has specific
prominence in Public Reports and announcements.
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Appendix F – Resource Polygon
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PREPARATION OF COMBINED JORC REPORT

FOR PT SUNGAI DANAU JAYA AND PT TANAH BUMBU RESOURCES

The JORC Report is attached to this announcement.

By Order of the Board

Charles Antonny Melati

Geo Energy Resources Limited

S1708 – 6th July 2017

7.2 ORIGINAL AND AS-DUMPED TOPOGRAPHIC SURFACE .............................. 41

Table ES.1 – Summary of Coal Reserves as at 19th May 2017 ................................................ 11

S1708 – 6th July 2017

Table 5.4 – Air Dried and Dry Basis Qualities ........................................................................... 32

Figure 2.1 – Location Map of the Project .................................................................................. 18

S1708 – 6th July 2017

Figure 10.1 – Mining Contractor’s Office .................................................................................. 57

Appendix A – Consent Template

Appendix B – Contributors to Report

Appendix C – JORC Table 1

Appendix D – Tenure Document

Appendix E – Recommendation Letter

Appendix F – Resource Polygon

Figure F.1 – Seam A5D2 Resource Polygons ........................................................................... 92

Appendix G – Life of Mine Plan Faces

Appendix H – Mutual Mining Agreement

S1708 – 6th July 2017

S1708—6th July 2017

S1708—6th July 2017

ASTER Advanced Spaceborne Thermal Emission and Reflection Radiometer

S1708—6th July 2017

Mtpa Million tonnes per annum

RELEVANT REPORTS AND DOCUMENTS

S1708—6th July 2017

S1708—6th July 2017

GEOLOGY AND RESOURCES

S1708—6th July 2017

Table ES.1 – Summary of Coal Reserves as at 19th May 2017

In situ Coal Reserve 290.4 92.0 3.2 71.8 13.6 85.4

S1708—6th July 2017

Table ES.2 – Summary of Coal Reserves by Concession

Total Total Incremental Proved Probable Proved + Probable

Table ES.3 – Estimated Quality of Product Coal

S1708—6th July 2017

1.1 SCOPE OF WORK

S1708—6th July 2017

S1708—6th July 2017

1.4 RESULTS LIMITATIONS AND STANDARDS

1.5 JORC TABLE 1

S1708—6th July 2017

2.1 LOCATION AND ACCESS

2.2 MINING TENURE

Table 2.1 – Concession Details

IUP PT Sungai Danau Jaya (SDJ) PT Tanah Bumbu Resources (TBR)

S1708—6th July 2017

Province South Kalimantan South Kalimantan

S1708—6th July 2017

2.4 FORESTRY STATUS

2.4.1 Izin Pinjam Pakai Kawasan Hutan (IPPKH)

S1708—6th July 2017

3.1.1 Regional and Local Geology

Table 3.1 – SDJ Seam Thickness Summary

S1708—6th July 2017