Energy Earth PCL : The Clarification and Submission of Documents with respect to Coal Mining Concessions

30 November 2018

SubjectThe Clarification and Submission of Documents with respect to Coal Mining Concessions

Attention President

The Stock Exchange of Thailand

Copied to Secretary General

The Securities and Exchange Commission ThailandReference

The Clarification Letter and Submission of Documents with respect to Coal Mining Concessions by EY Corporate Advisory Services Co., Ltd.

Reference is made to the Securities and Exchange Commission Thailand ("SEC") instruction to the Company to clarify the existence and the fair value of two coal mining concessions in Indonesia.

The Company would like to submit the clarification and documents with respect to coal mining concessions as prepared EY Corporate Advisory Services Co., Ltd., which has sent by e-mail to the Company on

16 November 2018 as follows;

**QUOTE**

-Translation-
Date [*]
Subject	The Clarification and Submission of Documents with respect to Coal Mining Concessions
Attention	Secretary General
The Securities and Exchange Commission Thailand

Reference

1) The Securities and Exchange Commission Thailand ("SEC") Letter no. SEC Kor Bor 70/2561 dated 16 March 2018 re SEC instructs EARTH to clarify the existence and the fair value of mining property rights

2) The Securities and Exchange Commission Thailand ("SEC") Letter no. SEC Kor Bor [*] dated [*] re [*]

Attachments 1) The Central Bankruptcy Court Rehabilitation Order black case no. Phor 27/2560 red case no. Phor 34/2560 dated 10 August 2018

2) Copy of Letter of Notary Public in Indonesia dated 14 September 2017 re EHM shares held by Mr. Arif

• 3) Copy of EEHK's company certificate

• 4) Copy of LHL's company certificate

• 5) Copy of EHM's company certificate

• 6) Copy of EHM's IUPOP

• 7) EHM's coal mining report dated April 2016 (revised May 2017) prepared by FGA Mining

Consultants

8) Copy of Letter of Notary Public in Indonesia dated 20 November 2013 re JAB shares held by Mrs. Melyati

• 9) Copy of ARH's company certificate

• 10) Copy of JAB's company certificate

• 11) Copy of EHM's IUPOP

• 12) EHM's coal mining report dated 31 July 2017 prepared by FGA Mining Consultants

According to the Securities and Exchange Commission Thailand ("SEC") informing EY Corporate Advisory Services Co., Ltd. ("Planner") in a capacity as the Planner of Energy Earth Public Company Limited ("Company") to conduct

• (1) Clarification and submission of documents confirming the existence of coal mine concession of Pt.Emas Hitam Mulia ("EHM") and Pt.Jagad Artha Bara ("JAB"), including the legal rights in share ownership of the companies holding the coal mine concession, and

• (2) Clarification and submission of a review of fair value of coal mine concession of EHM and JAB to SEC within 30 days from the date of the letter as per reference 1). Subsequently, the Planner has

requested to extend submission date and the SEC has extended the submission date to 60 days from the Central Bankruptcy Court ("Court") Order to allow the Company to conduct a review of fair value of coal mine concession of EHM and JAB as per reference 2)

According to the Court Order on 10 August 2018 to decrease expenses that the Planner requests to use for the review and valuation of coal mines by the Company's account and to pay for international legal advisor and financial advisor to review and valuation of coal mines in an amount not exceeding USD 150,000 as per the Central Bankruptcy Court Rehabilitation Order black case no. Phor 27/2560 red case no. Phor 34/2560 dated 10 August 2018 (Attachment 1), which the budget was not sufficient to hire the international advisors for the review and valuation of coal mines as per the Planner's Plan.

However, to follow the instruction of the SEC, the Planner would like to inform the SEC of the partial findings in the existence of coal mine concession of EHM and JAB, together with the legal rights in share ownership of companies holding the concessions as follow;

The Planner, acting via its legal advisor, has engaged ABNR Counsellors at Law, who is a law firm in Indonesia ("Indonesian Legal Advisor") to examine and collect findings in the existence of coal mining concession of EHM and JAB, together with the legal rights in share ownership of companies holding the concessions and to report to the Planner. The Planner would like to inform the limitation of the examination in information and documentation received from the employees and past management of the Company during 4 October 2017 to 10 November 2017, which were received as copies of documents and cannot verify their latest version with no amendment and addition later or not. The verification of information with the Indonesian Official on 27 June 2018 was a preliminary information from the Indonesian's database only. To verify the original documents or information in detail with the Indonesian's Official, the Indonesian Legal Advisor or the Planner require the authorization from the management or the authorized person of the Company's subsidiary in

Indonesia to be able to conduct the examination as mentioned.

Therefore, with the examination, the Planner would like to summarize the information received from the Indonesian Legal Advisor with respect to the coal mine concession of EHM and JAB as follows;

EHM Coal Mine

The Company holding rights in EHM coal mine is PT Emas Hitam Mulia ("EHM"), which is a company registered in Indonesia with business objective in coal and lignite mining.

The sole Director is Mr.Khajohnpong Khamdee and the Commissioner is Mr. Arif Hari Sukarno ("Mr. Arif"). The registered capital of EHM is IDR13,393,000.000.

Shareholders of EHM are Mr. Arif, an Indonesian Individual, and Lausanne Holdings Limited ("LHL"). LHL holds 245 shares, or 49% of total shares in EHM, while Mr. Arif holds 255 shares, or 51% of total shares in EHM.

Mr. Arif has stated to the Notary Public of Indonesia in writing that he holds shares in EHM on behalf of LHL as per the copy of the Notary Public of Indonesia dated 14

September 2017 (Attachment 2)

LHL is a company registered in Samoa with a registered capital of USD1,000,000. The Authorized Person Director include Mr. Khajohnpong Khamdee, Mr. Phisudhi Phihakendr, Mr. Phiroon Phihakendr, Mr. Phipat Phihakendr, Mr. Phiboon Phihakendr.

Energy Earth (Hong Kong) Company Limited ("EEHK") is a shareholder, holding 1 share, or 100% of total share in LHL.

EEHK is a company registered in Hong Kong with a registered capital of [*]. The Authorized Person Director include Mr. Khajohnpong Khamdee, Mr. Phisudhi Phihakendr, Mr. Phiroon Phihakendr, Mr. Phipat Phihakendr, Mr. Phiboon Phihakendr.

The Company is a shareholder, holding 351,336,995 shares, or 100% of total share in EEHK.

The above mentioned detail of shareholding are referred by the company certificate of EEHK, LHL and EHM as per the attachment 3) to 5) and can be summarized in the table below;

Summary Table of Rights in EHM Coal Mine

Company	Shareholder	Shareholding (%)	Director
EEHK	The Company	100	Mr. Khajohnpong Khamdee Mr. Phisudhi Phihakendr Mr. Phiroon Phihakendr Mr. Phipat Phihakendr Mr. Phiboon Phihakendr
LHL	EEHK	100	Mr. Khajohnpong Khamdee Mr. Phisudhi Phihakendr Mr. Phiroon Phihakendr Mr. Phipat Phihakendr Mr. Phiboon Phihakendr
EHM	LHL	49	Mr. Khajohnpong Khamdee
	Mr. Arif	51

On 30 April 2010, EHM has received the coal mine concession (Izin Usaha Pertambangan Operasi Produksi or "IUPOP") no.545/K/4034/2010 from the Governor of Kutai Barat on an area of 49.8 square kilometer (4,980 hectare) located at Nyuatan, Kutai Barat, East Kalimantan, Indonesia, Borneo. The land ownership does not belong to EHM, but it has coal mining concession for a period of 10 years from 30 April 2010 to 29 April 2020. It is estimated that the coal mine has coal reserve of 110 million ton as per the copy of EHM's IUPOP and the EHM's coal mining report dated April 2016 (revised May 2017)

prepared by FGA Mining Consultants (Attachment 6 and 7)