COAL SUPPLY SOLUTIONS

LMR MINE MANAGEMENT INDONESIAIn partnership with

Who is LMR ?Established in October 2000 in the marine and freight industryReinvented in the year 2006 – 2007 to a Mine Management Services Provider & Mineral Supplier

Business Record To Date

Mineral Processing Plant - ConsultantManganese Ore Mining - Owner & ManagementCoal Mining - Mining ContractorIron Ore Supplier - Vendor & FacilitatorCoal Supplier- Vendor & ExporterIndonesia Mining Industry Consultant - Australia, Philippines, India and MalaysiaOpen Tender Supply Winner - Indonesia Coal Fired Power PlantsCoal Processing Facility - Owner (Construction)

LMR‘s management team is a concoction of local, expatriate , veteran and fresh individuals that delivers a unique sense of innovation and professionalism through our projects and services.

LMR’s Activities MINERALS TRADING DIVISIONSupply of Coal to both domestic and export markets.

PROJECT DEVELOPMENT DEPARTMENTDevelopment of Coal Supply Solution Projects such as Mine Acquisition, Exploration, Facility Construction, etc

FREIGHT DIVISIONCoal Transportation via Barge Feeder Services - Domestic Operations Only

CONSULTATIONProviding consultation services per case basis to both local and foreign parties active and not active in the Indonesia Coal Mining Industry

Frequent Problems with Coal Purchasing Letter of Credit Purchase

No Cargo No purchasing capitalNo coal stockNo Slot for loading

At Discharging Port, Cargo RejectedCorruption of Independent Surveyor’s data at loading port

Had you experienced these problems?

Do you wish to experience these problem?

Know Your Supply ChainLMR Problem Analysis

Who are you getting your Coal Supply From?Is your Supply Chain Dependable?Are you maximizing profits with the current business risk you are taking?Are you a “Serious Player” in this Business ?

Are you a “Serious Player”?China is set to overtake Japan as the world's largest importer of thermal coal as soon as

this year, only three years after China became a net importer of the mineral used to fire power stations, according to an emerging industry consensus.

Source: Financial Times, 23rd June 2010

Indonesia is the largest exporter of thermal coal, is seeing rising production and drawing increasing interest from utilities & invest

LMR’s role is to identify such “Serious Players” in this industry and Help these players gain a sustainable market share through LMR’s Professionalism and innovation.

Some Serious Solutions

1. Coal Purchasing – Cash Progressive

2. Coal Processing Facility

3. Coal Mining Permit Holder – Mine Acquisition

Solution AnalysisCOAL PURCHASING COAL PROCESSING FACILITY MINE ACQUISITION

Strength

L/C Cash ProgressiveDiversified Risk

100% in Control Of Cargo (Q&Q)Medium Price – Raw MaterialsVarious Coal Grades Available

100% in Control Of Cargo (Q&Q)Low Price - Cost of Goods SoldMedium Risk

Operations (Low)Low Risk

Operations (Med)

Weakness

High Price

Monthly Capacity LimitationsOperations (Med - High)

High RiskOperations (High)

L/C Cash Progressive

No “Real” Control of Cargo (Q&Q) 100% in Control Of Cargo (Q&Q)

Opportunities Various Coal Grades Available (Mrkt) Various Coal Grades Available (Mrkt) Asset Growth Advantage (Financial)Increase Output

ThreatsWeather (Med)

Third Party Risk (High)Weather (Low)

Third Party Risk (Med)

Weather (High)Coal Grade Limitation (Market)

Possible Export Restriction in 2013

DOLLARS

&cENTS

L/C Cash Progressive

Cost of Goods Sold : USD 60 / MTUSD 3,000,000 / 50,000 MT

Profit Comparison Ratio68 : 60

USD 8 / MTUSD 400,000 / 50,000 MT

13.33%12 Shipments Saving : USD 4,800,000

Cost of Goods Sold : USD 50 / MTUSD 2,500,000 / 50,000 MT

Profit Comparison Ratio68 : 50

USD 18 / MTUSD 900,000 / 50,000 MT

36.6%12 Shipments Saving : USD 10,800,000

PurchaseUSD 68 / MT

USD 3,400,000 / 50,000 MTProfit Comparison Ratio

68 : 68Benchmark

PurchaseUSD 64 / MT

USD 3,200,000 / 50,000 MTProfit Comparison Ratio

68 : 64USD 4 / MT

USD 200,000 / 50,000 MT6.25%

12 Shipments Saving : USD 2,400,000

Coal Purchasing – Coal Vendor SystemCash Progressive

LMR is a practicing vendor of Coal. Bulk of LMR’s Coal Supply Operations are conducted as such.

In reference to the Coal Supply Chain, the coal vendor is a “collector” of coal stock from various Mines. To be a successful vendor, one must:

1. Ready Purchasing Capital2. Good & Wide relationships with Mine Contractors3. A prudent operations team for delivery of goods

Any company with a good credit facility can purchase coal with a Letter of Credit …Now it is time to get SERIOUS …

Coal Purchasing – Coal Vendor SystemCash Progressive

ADVANTAGESTake control of your supply chain, abolish situations where

No Cargo & Rejection of Goods at the discharging port

while making additional (±) USD 4 / MT profit in your profit margin

Coal Processing FacilitySimilar to Coal Vendor System with additional investment of a Coal Processing Facility whereby raw coal are stocked and processed before delivery.ADDITIONAL ADVANTAGES

More Control and Efficiency (Quality & Quantity) in the Coal Supply Chain

While making additional (±) USD 8 / MT profit in your profit margin

LMR’s Pilot Project for the Year 2010 – 2011 to build, operate and own such a Coal Processing Facility

Coal Mining Permit HolderTake control of the heart, of your coal supply chain by owning your own Coal Mining Permit / Concession in Indonesia.ADDITIONAL ADVANTAGES

100% Control of your Coal Supply Operations

While making additional of up to (±) USD 18 / MT profit in your profit margin

LMR has the experience of being a Mining ContractorConsultant for the Indonesian Mining Industry

Are you in this Business for Real ?

Are you really a “Serious Player” ?

YESNext Slide

NOClose Presentation

CongratulationsIf you are reading this slide, that means you wish to be a Major Player in the Indonesia Coal Mining Industry …

Contact our LMR Team TODAY and maximize your Coal Supply Plan from Indonesia.

LMR’s Products & ServicesDIVISION / DEPARTMENT PRODUCTS & SERVICES

MINERALS TRADING DIVISIONSupply of Coal to both domestic and export markets.

Purchase & Delivery - Transferable Letter Of Credit (Export) Coal Supply Management – Negotiable Payment Terms (ie. SBLC) Purchasing & Export Partner

PROJECT DEVELOPMENT DEPARTMENTDevelopment of Coal Supply Solution Projects such as Mine Acquisition,

Exploration, Facility Construction, etc

Mine Acquisition Services Exploration Services Greenfield Projects

FREIGHT DIVISIONCoal Transportation via Barge Feeder Services - Domestic Operations Only

Freight & Handling Services

CONSULTATIONProviding consultation services per case basis to both local and foreign

parties active and not active in the Indonesia Coal Mining Industry

Legal Probe of local companies Financial Probe of local companies Technical Analysis of Operations Sampling & Analysis of Coal Quality Exploration Coordination & Study

Project Feasibility Study Project Planning Production Planning Operations Planning Field Survey & Study

Our PromiseTo DeliverTrue Professionalism Through Our Products & ServicesFor the Benefit Of Our Clients & Partners

EMAIL US lmrindonesia@gmail.comlmrindo.sales@gmail.com

OFFICE ADDRESSSETIABUDI 2 BUILDING 2ND FLOOR, SUITE 205A, JL. H.R. RASUNA SAID, KAV 62, KUNINGAN JAKARTA 12920, INDONESIA

LMR MINE MANAGEMENT INDONESIAYour Coal Supply

Partner