The Company wishes to advise that it has entered into a Strategic Alliance Agreement (“SAA”) with OSRL today that would allow the latter to immediately subscribe up to 479,833,766 equivalent to 23% equity interest in BCL, the penultimate holding company of PT Koba Tin (“PT Koba”). PT Koba has a Contract of Work (“CoW”) with the Government of Republic of Indonesia giving the company sole rights to perform its business of exploring, mining, smelting and marketing of tin. The CoW covers an area of 41,680 hectares located in the regencies of Bangka Tengah and Bangka Selatan, Province of Kepulauan Bangka Belitung. BCL, which is currently 100% MSC-owned, has 75% effective interest in PT Koba via its wholly-owned investment holding company, Kajuara Mining Corporation Pty Ltd (“KMC”). Among others, the objectives and purposes of the SAA are as follows: (i) Facilitating greater local Indonesian participation in PT Koba by way of increased equity ownership and management through an Indonesian affiliate company of OSRL; (ii) Securing the PT Koba CoW extension or new mining permits over the existing CoW area for 10 years up to 31 March 2023 through joint effort of OSRL and MSC. (iii) Enabling BCL and operating companies to expand their businesses through performance improvement and value enhancement as well as through acquisition of additional mining permits for long term sustainable operations in Indonesia; Upon renewal of PT Koba CoW, OSRL will be able to increase up to 50% equity interest in BCL through subscription of additional 1,126,566,234 shares subject to fulfillment of certain conditions precedent stipulated in the SAA including MSC successfully obtaining shareholders’ approval at an extraordinary general meeting (EGM) to be convened upon at a later date.
Further details on the Proposed Strategic Alliance are set out in the attached file. This announcement is dated 9 March 2012. | 
