BAYAN RESOURCES AND WHITE ENERGY COMPLETE CONSTRUCTION OF FIRST EVER COMMERCIAL SCALE CLEAN COAL UPGRADING PLANT IN INDONESIA, ANNOUNCE EXPANSION OF INDONESIAN JOINT VENTURE TO 15 MILLION TONNES PER ANNUM IN TARGET PRODUCTION CAPACITY

·         Commissioning phase now underway - production to be ramped up over a six month period during 2H2009 to full capacity (1 million tonnes per annum) expected by end 2009 with sales of upgraded coal expected during that period

·         Significant increase in proposed scope of Joint Venture to strengthen market leading position in Indonesi

Jakarta, Monday 27 April 2009 – PT Bayan Resources Tbk. (Bayan (IDX: BYAN)) today announced the completion of a One Million Tonne Per Annum (1MTPA) clean coal upgrading modular plant at Bayan’s Tabang mine in East Kalimantan through a JV company with White Energy Company, PT Kaltim Supacoal.  The plant utilizes White Energy’s exclusive Binderless Coal Briquetting (“BCB”) clean coal upgrading technology which is in line with Bayan’s commitment to utilize advanced technology that will give its operations a competitive edge. 

The construction of the plant was successfully completed and consequently combined with the modular nature of the plant design, Bayan is confident that the proposed future plants at the Tabang mine can be easily expanded on a timely basis to meet the production goals of the parties.

The commissioning process is now well underway and production at the first plant is expected to ramp up to full capacity by the end of 2H2009 with export sales of the more valuable and environmentally friendly BCB coal taking place during that period.

Forecast Profitability

Through its Joint Venture company, PT Kaltim Supacoal (KSC), Bayan is well positioned to capitalize on the price spread that exists between low energy, high moisture sub-bituminous coals and the much higher energy value bituminous coals.

The estimated average cost of production of upgraded BCB coal is lower than the mining costs for most global thermal coal producers, positioning KSC as a low cost producer of thermal grade coal with the added benefit of its product being substantially cleaner with regard to transportation, handling, combustion, and residual waste than traditional bituminous thermal coals. Based on test results achieved in a sample plant, the BCB clean coal upgrading technology will allow Bayan’s Tabang low rank sub-bituminous coal of GAR 4,200 Kcal/kg to be upgraded to GAR 6,100 Kcal/kg while maintaining the low sulfur content of o.2% and low ash content of 3%.

Bayan estimates that the upgraded coal will be marketable with a similar or premium price to conventional high rank thermal coals, due to the similar energy yield, more environmentally friendly (low ash and sulphur), and general handling characteristics.  Based upon the current and forecasted coal prices for the low rank feedstock and high rank bituminous coals, as well as the estimated capital and operating costs of the BCB technology, the BCB coal upgrading process is expected to enjoy a favourable long-term coal upgrading price arbitrage.

Project Debt Financing

Bayan and White Energy have recently commenced formal discussions with a short-list of external bankers with the objective of negotiating debt facilities to assist with the accelerated rollout of additional plants in the near term. This process will focus on the re-financing of a portion of the equity contributed by both partners on the first plant.

Expansion of Current Joint Venture to 15 Million Tonnes Per Annum

In addition, both parties have agreed to significantly expand the capacity of the existing Joint Venture in Indonesia from 5 MTPA in production capacity to 15 MTPA in production capacity. As part of this expanded arrangement White Energy and Bayan have agreed that the expanded capacity will be constructed in priority to any other BCB plants to be built by White Energy in Indonesia.

About Bayan Resources:

PT Bayan Resources Tbk and subsidiaries (Bayan Group) are one of the largest coal producing groups in Indonesia with integrated coal mining, processing and logistics operations. It is engaged in the business of surface open cut mining of thermal coal and one of the few large coal producing groups in Indonesia that mines and sells high calorific value coal. It also produces other grades of coal including environmentally-friendly, low sulfur sub-bituminous coal and semi-soft coking coal.

The Bayan Group own and operate one of the largest coal terminals in Indonesia in Balikpapan, East Kalimantan with a handling throughput capacity of 15.0 million tonnes per annum. It currently also owns and operates a floating transfer station with the capability to load capsize vessels and utilize magnetic separators and an automated sampling system.

The Bayan Group currently exports the majority of the coal it produces to utility companies, steel mills, internationally known commodity trading companies and other industrial end-users in countries such as Italy, Japan, Taiwan, Korea, the Philippines, India, Malaysia and China. It also sells coal into the domestic market. For more information please go to www.bayan.com.sg

For Further Information Call:

Jenny Quantero

Corporate Secretary

PT Bayan Resources Tbk.

+ 62 21 526 9868