ASX ANNOUNCEMENT 10 JUNE 2008 ANZ TO PROVIDE ADDITIONAL DEBT FUNDING FOR CIBALIUNG GOLD PROJECT AUSTINDO’S INTEREST IN CIBALIUNG INCREASED TO 95% ANZ DEBT FUNDING Austindo Resources Corporation NL (“Austindo” or the “Company”) is pleased to announce that ANZ Bank will provide an additional US$5 million of debt funding to enable the Company to continue development of the Cibaliung Gold Project. These funds will be applied over the next three months primarily to advance the main Cikoneng decline, vent access and cross-cuts to ore in the Cikoneng ore shoot with the objective of reaching the ore body and commencing the stockpiling of ore. As at 9 June 2008, the decline was less than 50 metres from the Cikoneng ore body. Work on the gold processing plant over the next three months will be limited to care and maintenance and planning for recommencement of construction when the Company has put in place funding to complete the Project. Other infrastructure works on site have been scaled back to conserve financial resources in the near term. The Company acknowledges the support for and confidence in the Cibaliung Gold Project shown by its financiers and will over the next three months be seeking long term funding, while continuing with underground development. The Company had sought voluntary suspension of its securities in the interests of an informed market pending the conclusion of discussions with the ANZ on 6 June 2008. The market now being fully informed the Company has elected to reinstate its securities forthwith. AUSTINDO’S EQUITY IN CIBALIUNG GOLD PROJECT INCREASED TO 95% The Company is also pleased to advise that agreement has been reached with PT Antam Tbk for the Company’s interest in the Cibaliung Gold Project to increase from 89.75% to 95.0%. RESTRUCTURING OF AUSTINDO AND ITS TO FOCUS ON EXPLORATION IN INDONESIA At the Company’s Annual General Meeting held on 20 May 2008 shareholder approved a 50 to 1 consolidation of capital and a change of name to Arc Exploration Limited. The change of name is to become effective on 28 June 2008. This restructuring is part of a strategy to build on the Company’s demonstrated exploration strengths in Indonesia. In accordance with this strategy and with the support of ANZ as referred to above, the Company will: Continue mine development at Cibaliung while also pursuing alternatives to secure the necessary funding to complete the project; For personal use only
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ASX ANNOUNCEMENT 10 JUNE 2008
ANZ TO PROVIDE ADDITIONAL DEBT FUNDINGFOR CIBALIUNG GOLD PROJECT
AUSTINDO’S INTEREST IN CIBALIUNG INCREASED TO 95%
ANZ DEBT FUNDING
Austindo Resources Corporation NL (“Austindo” or the “Company”) is pleased to announce that ANZ Bank will provide an additional US$5 million of debt funding to enable the Company to continue development of the Cibaliung Gold Project.
These funds will be applied over the next three months primarily to advance the main Cikoneng decline, vent access and cross-cuts to ore in the Cikoneng ore shoot with the objective of reaching the ore body and commencing the stockpiling of ore. As at 9 June 2008, the decline was less than 50metres from the Cikoneng ore body.
Work on the gold processing plant over the next three months will be limited to care and maintenance and planning for recommencement of construction when the Company has put in place funding tocomplete the Project. Other infrastructure works on site have been scaled back to conserve financial resources in the near term.
The Company acknowledges the support for and confidence in the Cibaliung Gold Project shown by its financiers and will over the next three months be seeking long term funding, while continuing with underground development.
The Company had sought voluntary suspension of its securities in the interests of an informed market pending the conclusion of discussions with the ANZ on 6 June 2008. The market now being fully informed the Company has elected to reinstate its securities forthwith.
AUSTINDO’S EQUITY IN CIBALIUNG GOLD PROJECT INCREASED TO 95%
The Company is also pleased to advise that agreement has been reached with PT Antam Tbk for the Company’s interest in the Cibaliung Gold Project to increase from 89.75% to 95.0%.
RESTRUCTURING OF AUSTINDO AND ITS TO FOCUS ON EXPLORATION IN INDONESIA
At the Company’s Annual General Meeting held on 20 May 2008 shareholder approved a 50 to 1 consolidation of capital and a change of name to Arc Exploration Limited. The change of name is to become effective on 28 June 2008.
This restructuring is part of a strategy to build on the Company’s demonstrated exploration strengthsin Indonesia.
In accordance with this strategy and with the support of ANZ as referred to above, the Company will:
Continue mine development at Cibaliung while also pursuing alternatives to secure the necessary funding to complete the project;
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Pursue other exploration opportunities in Indonesia, including the Trenggalek and Pekalongan KPs in Java and the Bima KP in Sumbawa;
Maintain its strategic alliance with Anglo American Group to explore for large copper/gold porphyry deposits in the Province of West Papua in Indonesia.
Seek to generate new project opportunities and strategic relationships in Indonesia.
EXPLORATION IN INDONESIA
Austindo believes that its current exploration portfolio has outstanding potential, and that there remains significant value to be unlocked for shareholders.
Trenggalek Project, East Java (ARX – 95%)
The Company commenced exploration work on the 17,586 ha tenement in mid-2006 and has conducted prospecting and mapping over the northern half of the tenement. The project area comprises prospective Oligocene-Miocene age volcano-sedimentary rocks similar to those at Cibaliung. Previous exploration in the late 1990’s found high-grade float and traced it to narrow epithermal quartz vein outcrops at the Kojan, Buluroto and Sentul prospects. The very encouraging results from sampling of these veins together with results from vein-float found in our recent work suggest the presence of multiple high-grade quartz vein sources within the tenement.
The aim of future exploration is to test the known veins, locate additional veins indicated by float and then to drill test them at the earliest opportunity. All permitting necessary to allow drilling to proceed is in place.
Pekalongan Project, Central Java (ARX – 95%)
The Company commenced exploration work on the 5,618 ha tenement in early 2006 and has conducted prospecting and mapping over the eastern side of the tenement. Similar to Trenggalek, the project area comprises prospective volcano-sedimentary rocks.
Previous exploration in the 1990’s found high-grade vein-gold float surrounded by zones of low-grade gold-silver-lead mineralisation in quartz stockwork at the Kuning Prospect. Exploration will continue to investigate the tenement for high-grade vein-gold targets and aim to advance the project to a scout drilling phase with subsequent follow up drilling if justified by results.
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Bima Project, Sumbawa (ARX – 95%)
On 28 May the Company announced that it had secured a new joint venture interest in the Bima Project.
The Bima project covers an area of 24,980 ha in West Nusa Tenggara Province, East Sumbawa on a segment of the highly prospective Sunda-Banda Magmatic Arc, which is host to the giant Batu Hijau porphyry copper-gold deposit, located in west Sumbawa. This new project is prospective for both high-grade epithermal gold-silver and bulk tonnage porphyry-style gold-base metal deposits.
The initial program at Bima will comprise regional mapping and drainage sampling in the first twelve-months of the KP permit to identify prospects for detailed exploration and evaluation.
The Company has a 20% interest in a strategic alliance with the Anglo American Group (“Anglo”) to explore for large copper/gold porphyry deposits in Papua. The Company’s interest is fully funded by Anglo through to a development decision.
The first project identified, Aisasjur, covers an area of 9,486 hectares on the Bird’s Head peninsula of West Papua Province. The project area lies within one of Indonesia’s young Tertiary volcano-
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plutonic arcs and is prospective for both porphyry copper-gold and epithermal gold mineralisation styles.
Eight holes were recently drilled by Anglo for a total of 3,347.9 m on the Aisasjur Prospect. Low-grade copper-gold mineralisation associated with broad zones of alteration and stockworking was intersected in one of the holes and indicates the presence of a blind porphyry system. The encouraging results of this program are the basis for a proposed follow-up drilling program. All exploration at Aisasjur is funded by Anglo.
Formed in 1983, Austindo Resources Corporation NL is an Australian listed exploration company focused on exploring Indonesia.
The Company has a 95% joint venture interest with PT Sumber Mineral Nusantara in the Trenggalek and Pekalongan and tenements located in East and Central Java respectively, areas prospective for high-grade epithermal gold/silver deposits. The Company also holds a 95% joint venture interest in the Bima prospect in East Sumbawa which is prospective for high-grade epithermal gold-silver and bulk tonnage porphyry-style gold-base metal deposits.
In addition, the Company has a strategic alliance with the Anglo American Group to explore for large porphyry copper/gold deposits in Papua.
The Company also retains a 95% interest in the Cibaliung Gold Project, a high-grade epithermal gold/silver vein system located southwest of Jakarta in Banten Province, western Java. Cibaliung is expected to produce at an overall annual rate of 70,000 oz (gold equivalent).
Shareholders at the Company’s Annual General Meeting held on 20 May 2008 approved a number of measures to restructure the Company. A 50 to 1 consolidation of capital was approved which resulted in the Company’s issued capital reducing to some 150 million ordinary fully paid shares.
In addition shareholders approved a change of name to Arc Exploration Limited to reflect the Company’s future direction as an explorer. The change of name will become effective on 28 June 2008.
