BUMA Signed New Contract with PT Insani Baraperkasa

PT Delta Dunia Makmur Tbk. (the "Company") is pleased to announce that its subsidiary, PT Bukit Makmur Mandiri Utama ("BUMA"), has entered into mining services contract with PT Insani Baraperkasa (“IBP”), a subsidiary of an IDX-listed PT Resource Alam Indonesia Tbk. (“RAIN”). IBP is located in the Kutai Kartanegara Regency, Province of East Kalimantan.

The contract with IBP will last eight years until 2025, with potential extensions. During the tenor of contract, BUMA is expected to produce over 130 million bcm of overburden removal and 20 million tonnes of coal. The contract value is estimated at over Rp 4.5 trillion or equivalent to approximately US$340 million.

The signing of IBP contract marks the beginning of a new relationship between BUMA and RAIN Group, an established coal mining group in Indonesia. It is our hope that this would develop into long-term, strong partnership over time.

Along with two other contracts signed earlier this year, IBP contract brings BUMA’s total order book from US$5.0 billion at the beginning of 2018 up to US$6.0 billion, a US$1.0 billion incremental value in the first few months of 2018. BUMA remains under discussions on a few potential additional contracts with both new and existing customers, with some expected to be finalized in the near future. These contracts will further grow BUMA’s portfolio and operations in line with its strategy for long-term sustainability and profitable growth.