AS X / M E D I A A NNO U N C E M E NT

24 December 2014

311 - 313 Hay Street

SUBIACO WA 6008

P: + 61 8 6489 0600

F: + 61 8 9388 3701

ABN: 45 098 448 269

FAVOURABLE INDONESIAN GOVERNMENT REGULATION ON DIVESTMENT (GR 77/2014) - UNDERGROUND MINES

x 70% Foreign ownership allowable for the life of mine

x Sell down to 70% to occur after 15 years

CEO Alan Hopkins: "After extensive campaigning & presentations in Indonesia about the long term benefits

& requirements of underground mining in Indonesia, it is great to see the Government formally recognising this in its latest mining regulation. This removes what was a significant hurdle to the necessary, long term foreign investment required for the development of long life, underground mining projects that can provide real benefit to all  stakeholders  in  Indonesia".
Pan Asia Corporation  Limited   (ASX:  PZC)  ("the Company")   is pleased to comment on the recent Indonesian Government  regulation  No  77  of  2014  ("GR77/2014")  as  it  is  of  particular  significance   to  Pan  Asia's   flagship Indonesian underground, high CV thermal coal project TCM (75% owned by PZC).
This regulation provides that a Production Operation involving underground mining now requires a maximum 30% divestment to local partners (i.e. 70% foreign ownership allowable).
The timing of divestment is as per the schedule below (Category 4 is underground mining):

Pan Asia has given many conference presentations and contributed to several leading magazine articles in Indonesia outlining the many benefits of digging deeper for resources in Indonesia. In particular we have outlined the special requirements needed to assist the development of such underground projects.
The timing of this is especially beneficial as we look to make significant progress on the TCM project in the coming year.

ENDS

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About Pan Asia

Pan Asia Corporation Limited aims to be a supplier of key energy resources into the expanding Asian markets. Our flagship TCM Project is a high CV thermal coal project in South Kalimantan. The Company seeks to build significant projects, de-risking them ready for development partners / offtake agreements with quality, life of mine partners.

For Further Information Contact: Alan Hopkins Jason Campbell

Chief Executive Officer Commercial Manager & Company Secretary

Pan Asia Corporation Limited Pan Asia Corporation Limited Tel: + 61 8 6489 0600 Tel: +61 8 6489 0600 info@panasiacorp.com.au

Pan Asia Corporation Limited

311 - 313 Hay Street SUBIACO WA 6008 P: + 61 8 6489 0600 F: + 61 8 9388 3701 ABN: 45 098 448 269 2

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