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Moody’s sees no impact on Bumi from the proposed sale of Bumi Resources Minerals Tbk

Singapore, June 14, 2011 -- Moody's Investors Service sees no immediate
impact on Bumi Resources Tbk's ("Bumi") Ba3 corporate family rating and
Bumi Investment Pte Ltd's Ba3 senior secured notes rating from the
proposed sale of a 75% stake in Bumi Resources Minerals Tbk ("BRM") to
Vallar PLC ("Vallar"), which will issue approximately US$2.1billion of
convertible bonds to Bumi as consideration. The transfer is expected to
be completed in 3Q 2011.

The outlook of the ratings remains stable.

"The disposal of a majority stake in BRM streamlines Bumi's operational
structure and allows it to fully concentrate on its coal operations in
Indonesia. It also reduces Bumi's exposure to the execution, political
and expropriation risks pertaining to BRM's exploration and development
projects in high risk jurisdictions," says Alan Greene, a Moody's Vice
President and Senior Credit Officer.

>From a cash flow perspective, Moody's does not expect any material impact
arising from the proposed sale as BRM previously raised funds for its
development independently without any recourse to Bumi. After the
completion of the transaction, BRM's debt will be excluded from Bumi's
adjusted financial metrics, but the overall improvement in leverage will
not be significant given the size of Bumi's total debt.

Moody's is also cognizant of the 2% coupon on the convertible bond.
Vallar is expected to fund the semi-annual payments via cash flow from
Bumi and Berau Coal, a 75%-owned subsidiary of Vallar, as it is an
investment holding company with no operational cash flow.

"The proposed sale also provides Bumi with an additional financial
instrument that may potentially be monetized and/or used to reduce its
substantial debt leverage. However, the ability to reduce its debt is
subject to the timely agreement of the counterparties. Meanwhile, the
value of the Vallar convertible bond will be exposed to market pricing
risk," adds Greene, also Moody's Backup Analyst for Bumi.

Vallar owns 25% of Bumi through a share swap with the Bakrie Group in
March 2011. Vallar intends to increase its stake in Bumi up to 50% and
obtains control during 2011 via a further share swap with willing Bumi

BRM holds interest in iron ore, zinc, lead, phosphate, diamond, and gold
concessions located in Indonesia and Africa. Most of its projects are
currently at the feasibility study/ exploration stage and are likely to
require substantial investments to bring them to production stage over
the medium-to-long term. It is listed on the Indonesia Stock Exchange
since December 2010 and is expected to maintain its listing after the
transaction between Bumi and Vallar. Bumi's current shareholding in BRM
is 87.09%.


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