Excellency

Churchill Mining Plc. (hereinafter referred to as “Churchill”), would like to report a complaint to Your Excellency in the hope of securing legal protection and certainty in regard to a number of mining licenses, in which Churchill has an interest, that were issued and then unilaterally revoked by the Regent of Kutai Timur.

The action of the Regent of East Kutai in unilaterally revoking these mining licenses has resulted in many legal problems for Churchill who as a foreign investor, acting in good faith, wishes to participate in the Indonesian coal mining industry for the mutual benefit and advantage of the government, the local community and the relevant companies.

Churchill is a British company, which in 2008 discovered what is Indonesia’s second largest and the world’s seventh largest undeveloped coal resource. Development of the East Kutai Coal Project will be a multi-billion dollar investment that will create thousands of jobs in East Kalimantan, generate export earnings of several billion dollars annually and provide large royalty payments to the Government of Indonesia for the mine’s 50+ years life.