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COAL MINING, CONTRACTORS & COAL TRADE, EXPORT, IMPORT

Head Office : Street. Adji Masnandai No.69, RT. 29, Timbau Village, Tenggarong District, Kutai Kartanegara Regency, East Kalimantan Province,
Tlp/Whatsapp : +62 853 5064 9119.,+62 853 4978 8989.,+62 822 2864 7659., +62 813 8437 3381

BUSINESS PROPOSAL
COAL MINING, TANJUNG MANGKALIAT VILLAGE, EAST
KALIMANTAN PROVINCE
ARTICLE 1
AT A GLANCE ON PROJECT LOCATION
A. SUMMARY

This document contains a proposal or development of a coal commodity business project. This

project is located in the village of Tanjung Mangkalat, sub-district of the back of the East Kutai

Regency, East Kalimantan Province. This area is owned by a company name:

1 Company name : PT . JAYAKHISMA GLOBE INDONESIA

2 Single ID : 3364083032014012
3 SK number : 540.1/K.531/HK/VIII/2011
4 SK Effective Date : Agustus 9, 2011
5 SK Expiration Date : Agustus 9, 2031
6 Activity Stage : OPERASI PRODUKSI
7 Area (Ha) : 4.800,00
8 Commodity : BATUBARA
9 C&C Status : CNC-22
10 Area code : 72-BB-KUTIM-08
11 Mine Location : DESA TANJUNG MANGKALIAT, KEC.
SANDARAN, KAB. KUTAI TIMUR
12 Port Permit : TUKS NO : .NV.008/2/8/DNG/Smr.2017
13 Registered Exporter : ET No .03.ET-04.18.0131
14 Coal Specification : GAR 4900 Kcal/ Kg – GAR 4200 Kcal/Kg
14 Stripping Ratio : Max 1 / 5
16 Reserve deposit : 10.000..000 MT / 100 Ha
17 Outcrop : 17 Outcrop
19 Houling distance to Jetty/Port : 5 Kilo Meters
20 Jetty area : 5 Ha
20 Shipping Distance To Open Sea : 1 mile ( 1,6 Kilo Meters )
21 Loadable barge : 300 Feet
22 Loading facility : Ramp Door
23 Down Payment : Rp.15.0000.0000.000 Negotiable
25 Roalt Fee : 5 USD Includes All Permits, Houling Road, Jetty
and loading Port + 100 Ha Mining Land that has
been acquired but does not include Mine land
acquisition that has not been released
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B. MINE FACILITIES ALREADY OWNED

1. Houling road already has its own, just widening and maintenance
2. The port for barge loading is available with a manual ramp door system
3. Mother Vessel Loading Conveyor for Mother Vessel Open Sea Capacity 70,000 already
stockpiled, Just Continuing Construction

PT. KOBA JAYA RAYA ( KOBA ). Have approached and discussed with PT. JAYAKHISMA
GLOBE INDONESIA will continue the operation of this project in 2022 if all technical and non-
technical aspects as well as business, economic and environmental feasibility can be fulfilled
clearly and quickly. KOBA will soon start production operations in the PRODUCTION
OPERATION MINING BUSINESS LICENSE owned by
PT. JAYAKHISMA GLOBE INDONESIA With JOINT OPERATION System

With a total coal deposit of 10,000,000 MT / 100 Ha or an estimated total reserve of 400,000,000
MT in an area of 4800 Ha. That's our side, PT. KOBA JAYA RAYA. will exploit in a
professional business for approximately 200 ( Two hundred) months with the amount of
production each month between 200,000 s / d 250,000 MT. / Month
This coal commodity already has potential and trusted prospective buyers and has entered into a
sale and purchase agreement and cooperation contract during the production period with a selling
price level which will be negotiated again every 3 (three) months. Negotiations are needed to
assess changes and developments in coal commodity prices nationally and internationally as well
as developments in production costs.

From the calculations made up to this point, PT. KOBA JAYA RAYA. believes that the coal
project and business in Tanjung Mangkalat Village is quite profitable and therefore deserves to
be continued and developed.

C. REGIONAL ACHIEVEMENT

From Jakarta Soekarno Hatta International Airport to Sultan Aji Muhammad Sulaiman

Sepinggan International Airport, it takes approximately 1 hour 30 minutes to fly, and from Aji

Muhammad Sulaiman Sepinggan Airport to Kalimarau Tanjung Redeb Airport. taken by flight

for approximately 40 minutes Arriving at the Tanung Redeb airport, determine by land it takes

approximately 5 hours Arriving at the village of Biduk Biduk, And from the village of Biduk

Biduk continue the journey by river using a speed boat for approximately 40 minutes to the mine

site PT.JAYAKHISMA INDONESIAN GLOB

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E. BUSINESS OBJECTIVES

The main goal of this business is to find enough profit to be the basis for doing

similar business in the future. The commodity owned and traded is coal. Another objective

of a business project is to establish a collaboration between 4 related parties consisting of:

(1) land/commodity owners, (2) advanced management organizations, (3) investors or

funders, and ( 4) experts in the field of business management and experts in the field of coal

production. All of these parties will get a share of the results of this production and

business according to the calculation of the financing and profits of this business which will

be detailed in the section below later.

ARTICLE 2
ESTIMATION OF PRODUCTION TARGET

B. OVERBURDEN REMOVAL TARGET PLAN

1. Production Target / Year : 12.000,000 BCM

2. Production Target / Month : 1,000,000 BCM

3. Production Target / Day : 33.335 BCM

4. Production Target / Shift : 16.670 CM

5. Production Target / Hour : 1.855 BCM

C. COAL PRODUCTION TARGET PLAN

1. Production Target / Year : 2,400,000 Metric Ton

2. Production Target / Month : 2,00,000 Metric Ton

3. Production Target / Day : 6.667 Metric Ton

4. Production Target / Shift : 3.334 Metric Ton

5. Production Target / Hour : 371 Metric Tone

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ARTICLE 3
PROJECT FINANCING

A .STARTUP BUDGET PLAN

 Down Payment : IDR 15,000,000,000

 Mining Land Acquisition Rp.50.000.00 / Ha x 20 Ha : IDR 1.000.000.000

 Office Construction On site : IDR. 300,000,000

 Construction of employee houses on site : IDR 500,000,000

 Mitsubishi Triton X 4 Unit : IDR . 2.000.000.000

 12 Monts Operating Cost : IDR 600.000.000

 12 Monts Consumable Fees : IDR 600.000.000

 12 Monts Transportation Costs : IDR 600.000.000

 TOTAL :IDR 20.600.000.000

B. COST MINING CONTRACTOR

OVERBURDEN REMOVAL FULL SERVICE INCLUDING THE MAKING AND

MAINTENANCE SETTLING POND STRIPPING RATIO 1 MT / 5 BCM

1. Land Clearing and Removal of Topsoil ; 2 ,5 USD / BCM

2. OB Removal Houl Distance max 1.000 Meter : 2 USD / BCM

3. Coal Cleaning, Coal Getting, and Coal Houling : 1 USD / MT

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C. ESTIMATED CALCULATION OF MINING CONTRACTOOR COSTS IN 1

METRIC TON OF COAL AEEIVING AT JETTY

It is estimated that the thickness of topsoil is 1 meter and the thickness of OB is 4 meters
and getting 1 MT of coal can be seen from the total cost of removing topsoil, OB Removal
and Coal Cleaning, Coal Getting, Coal Houling as follows
 TS,LC : 2,5 USD X 1 BCM = 2.5 USD

 OB : 2 USD X 4 BCM = 8 USD

 Coal : 1 USD X 1 MT = 1 USD

TOTAL COSTS COAL TO JETTY / MT = 11, 5

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D. ESTIMATED COAL CRUSHING AND COAL BARGING CONTRACTOR COST

 5 USD / MT

C. COST OF SOLD GOODS ( COGS )

 COGS FOB BARGE : 16.5 USD / MT

 OVERHEAD COST 15 % OF COGS : 2.5 USD / MT

 ESTIMATED COGS : 19 USD / M

ARTICLE 4
ESTIMATED BUDGET COST PROFIT, LOSS

Known In This Mine Location Has Coal Specifications with Quality GAR 4,900 Kcal / Kg -

4,200 Kcal / Kg, But We Try to calculate with the lowest GAR 4,200 Kcal / Kg with our

price we lower it to export price 50 USD / MT FOB MV with Profit Calculation and losses

as follows:
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PRODUCTION TARGET COST BUDGET PLAN 1,200,000 / YEAR FOB MV

CAS OUT/ MT COST TOTAL
DETAILS OF ACTIVITIES QTY MT / MV
% USD ( $ ) KURS IDR ( Rp ) USD( $ ) IDR / Rupiah ( Rp )
COAL SALES PRICE FOB MV 100% $ 50 Rp 14.337,05 Rp 716.852,50 1.200.000 $ 60.000.000,00 Rp 860.223.000.000,00

PURCHASE COSTS, TAXES, FEE AND OPERATIONS 0

Coal Purcase FOB Barge 38% $ 19,00 Rp 14.337,05 Rp 272.403,95 1.200.000 $ 22.800.000,00 Rp 326.884.740.000,00
Transhipment BARGE To MV 6,97% $ 3,49 Rp 14.337,05 Rp 50.000,00 1.200.000 $ 4.184.961,34 Rp 60.000.000.000,00
Sampling Analysis in jetty/barge 0,76% $ 0,3800 Rp 14.337,05 Rp 5.448,08 1.200.000 $ 456.000,00 Rp 6.537.694.800,00
Tax PPN 10% 10% $ 5,00 Rp 14.337,05 Rp 71.685,25 1.200.000 $ 6.000.000,00 Rp 86.022.300.000,00
TAX PPH 22 1,50% 0,75 Rp 14.337,05 Rp 10.752,79 1.200.000 $ 900.000,00 Rp 12.903.345.000,00
Stevedoring PBM 5,00% $ 2,50 Rp 14.337,05 Rp 35.842,63 1.200.000 $ 3.000.000,00 Rp 43.011.150.000,00
Oprational 1,39% $ 0,70 Rp 14.337,05 Rp 10.000,00 1.200.000 $ 836.992,27 Rp 8.369.922.682,84
STARTUP COST 2,39% $ 1,20 Rp 14.337,05 Rp 17.166,67 1.200.000 $ 1.436.836,73 Rp 20.600.000.000,00
TOTAL COST TO MV 66,02% $ 33,01 Rp 14.337,05 Rp 473.299,36 1.200.000 $ 39.614.790,34 Rp 564.329.152.482,84
ISTIMATED MARGIN 33,98% $ 16,99 Rp 14.337,05 Rp 243.553,14 1.200.000 $ 20.385.209,66 Rp 295.893.847.517,16

 FINANCING FUND NEED : Rp 564.329.152.483 / $ 39.614.790

 FIRST YEAR MARGIN ESTIMATION 33,,98 % : Rp 295.893.847.517 / $ 20.385.210

 ESTIMATED COGS / MT FOB MV : Rp 473.299 / $ 33

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SUMMARY OF LICENSING AND EXPLORATION DATA

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Official Link for Indonesian Mineral and Coal Licensing

https://modi.esdm.go.id/portal/detailPerusahaan/3835?jp=1

https://momi.minerba.esdm.go.id/publi
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Thus, we make this business proposal, hopefully it can represent initial information and

we highly recommend if investors are interested in cooperating with us so that they can

together with us make a visit to the mine site and conduct a detailed exploration.

Best regards

RIDWAN, ST
President Direktur