Reserves

Estimates of our coal reserves and resources are prepared independently and in accordance with the Code for Reporting Mineral Resources and Ore Reserves (JORC Code) (2004) of the Australasian Institute of Mining and Metallurgy (AusIMM). This Code sets out the principles and guidelines, which should be followed in the preparation of an expert report concerning reserves and resources.

The table below shows Adaro Energy’s coal reserves and resources as at December 31, 2008, based on JORC 2004:

Exploration is concentrated in the eastern part of North Tutupan, Wara 1 and Wara 2. The activity is prioritized to areas that require drilling to obtain more reliable geological, hydrological, and geotechnical data. Our exploration activities are conducted by our subsidiary Adaro Indonesia and drilling activities are outsourced but closely monitored by our Pit Geology and Quality Control divisions.