ARMS.L Regulatory News (ARMS)

For Immediate Release 28 March 2014

Asia Resource Minerals plc ("ARMS" or the "Company")

Preliminary Results Announcement 2013

A Renewed Vision

• A fresh start under the new name of Asia Resource Minerals plc

• A strengthened management team

• A refreshed Board

• Enhanced governance and financial controls

• Successful separation from the Bakrie Group and an intention to return at least $400m to shareholders

• A near term focus on maximising the thermal coal opportunity at PT Berau

Financial Highlights

• Revenue of $1.4bn (2012: $1.5bn)

• Underlying EBITDA of $176m (2012: $321m-restated) - reflecting continued impact of weak thermal coal prices

• Group net debt of $507m (2012: $514m)

• Capital expenditure substantially reduced to $46m (2012: $101m-restated)

Operational Performance

• Full year production of 23.5mt, up 11.7% (2012: 21.0mt)

• Production cost of sales held flat on a per tonne basis $38.6/t (2012: $38.7/t)

• Stripping ratio of 8.8bcm/t

• Average realised price $59.6/t (2012:$70.9/t)

• A number of major initiatives launched as part of Asset Optimisation Programme

Nick von Schirnding, Chief Executive Officer of Asia Resource Minerals plc said, "I am pleased to report that we exceeded our production target for the year. In the continuing weak environment for thermal coal prices, we remain resolutely focused on cost reduction and asset optimisation. We now look forward to maximising the opportunity at PT Berau as we begin a new chapter in the Company's life."

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* The 2012 numbers have been restated to reflect the write off of deferred stripping and the associated tax effect thereof resulting from the implementation of IFRIC 20 and the reclassification of a prepaid lease from other non-current assets to property, plant and equipment.

Notes

1 Operating loss is after charging $149 million (2012: $116 million) in respect of the amortisation of fair value adjustments created as a result of the acquisition of PT Berau.

2 Underlying earnings and underlying EBITDA exclude separate items. Separate items are those items of financial performance that the Group believes should be separately disclosed. Separate items include when applicable, impairment of goodwill and other assets, costs of acquiring and integrating acquisitions, fundamental restructuring of business, profit or loss on disposal of a business or significant other asset, material claims and settlements and significant gains and losses on derivative instruments.

3 After charging $140 million (2012: $107m) in respect of the amortisation of fair value adjustments created as a result of the acquisition of PT Berau and $nil (2012: $3m) as a result of the acquisition of PT Bumi.

4 After charging $74 million (2012: $60m) in respect of the amortisation of fair value adjustments created as a result of the acquisition of PT Berau and $nil (2012: $3m) as a result of the acquisition of PT Bumi.

5 Basic loss per share is calculated as loss for the financial period divided by the weighted average number of ordinary shares in issue for the period. The basic weighted average number of ordinary shares is 241 million (2012: 241 million).

6 Underlying loss per share is calculated as underlying earnings divided by the weighted average number of ordinary shares in issue for the period.

The Group presents underlying loss and underlying EBITDA as an additional measure to provide greater understanding of the underlying business performance of its operations. The adjustments to arrive at underlying loss and underlying EBITDA are:

* The 2012 numbers have been restated to reflect the write off of deferred stripping and the associated tax effect thereof resulting from the implementation of IFRIC 20.

Financial and Operating Results

2013 was a very challenging but transformational year for the Group. Against a backdrop of shareholder turmoil and continued weak thermal coal prices, the underlying business performed well in terms of production growth, cost control and further enhancement to our systems of governance and financial controls.

Whilst sales volumes increased 11% in the year to 23.3mt, this was offset by a 16% reduction in the average selling price. Production at PT Berau grew by 11.7% in 2013 to 23.5mt from 21.0mt in 2012. Underlying EBITDA was $176m (2012: $321m-restated).

The Separation Transaction

At our General Meeting on 17 December 2013, our shareholders voted overwhelmingly for the Separation Transaction as well as a change of name to Asia Resource Minerals plc.

On 25 March 2014 we announced the completion of the Separation Transaction which involved the disposal of our 29.2% stake in PT Bumi and the sale of the Bakrie Group's entire 23.8% indirect interest in the Company to RACL, a company owned by Samin Tan. Companies controlled by Samin Tan now own 47.6% of the total shares in the Company.

While the timing of completion was delayed, the price of $501 million paid by the Bakries for the PT Bumi stake was completed according to the original terms and at more than three times the market value of PT Bumi in Indonesia prior to completion.

Following the successful conclusion of the transaction, our intention is to return at least $400 million of cash to shareholders.

Management Changes

In October, we significantly strengthened our management team with the appointments of Paul Fenby as Chief Financial Officer, and Keith Downham as Chief Mining Officer, both based in Jakarta. Paul's initial focus is on optimising the Group's capital structure and strengthening our financial controls, while Keith is responsible for our new Life of Mine plan and ongoing asset optimisation programme. A number of other management appointments have also been made.

Board Changes

There have been significant changes to the composition of the Board in the year under review with the resignations of Messrs. Yeo and Harsono, the changes which took place at the general meeting of shareholders on 21 February 2013 with the departure of Messrs Mizrahi and Rathod and the appointment of Sir Richard Gozney, and the retirement from the Board of Lord Renwick, Sir Graham Hearne and Scott Merrillees who did not seek re-election at the Company's annual general meeting held on 26 June 2013.

During 2013 the Nomination Committee has been working on the restructuring of the Board. This led to the appointment of Nick Salmon and Chris Walton as Independent Non-Executive Directors on 1 January 2014, and Nick's appointment as Senior Independent Director on 1 February 2014. This process is ongoing and further appointments continue to be considered.

As announced separately, Chris Walton became Chairman of the Board when Samin Tan stepped down as Chairman. Mr Tan has remained as a Non-Executive Director of the Company.

As announced on 23 December 2013, Steven Shapiro has informed the Board that he will not be seeking re-election at the Company's AGM to be held on 5 June 2014.

Strategy

The three pillars of the Group's near term strategy are:

· Optimisation - we are optimising our asset base by improving efficiency and cutting costs aggressively across the Group

· Organic Growth - we are focused on delivering profitable production growth at PT Berau

· Capital Structure - we are optimising our capital structure and currently exploring a range of refinancing options to reduce our interest costs

Optimisation

Good progress continues to be made in respect of the Group's asset optimisation programme, to reduce costs and improve efficiencies.

An optimised Life of Mine plan has been completed, which will aim to maximise value and further enhance the efficiency of current mining methods. Discussions are also at a very advanced stage with a number of mining contractors to effect rate reductions starting in 2014. In addition the number of contractors has been rationalised by the removal of some of the smaller higher cost contractors. Projects are underway to ensure that the Group realises the lowest costs for tyres and explosives.

Conceptual level studies have been completed into the use of conveyors to transport both waste material and coal, and initial outcomes from these studies suggest there is potential to further reduce costs. The current focus is to advance the studies and engineering on these projects for potential implementation.

Fuel consumption for both mine fleet and shipping has been reduced by around five million litres through the use of additives which improve combustion and instituting controls that reduce wastage. Further fuel initiatives are currently being worked on, including the implementation of fuel management systems and improved fuel pricing. Fuel is one of the Group's largest costs, in 2013 it spent $227 million on fuel.

Annualised exploration costs have been reduced by 11% to $11.5m (2012: $12.95m) through maximising the utilisation of drilling equipment. The number of rigs has been reduced; as has the overall number of geologists.

In terms of barging productivity, sea trials have been completed on 330ft barges with a load capacity of 11,000 tonnes, against current 270ft barges with a 7,000 tonne load capacity. Two larger barges have been brought into service with plans to replace the entire fleet operating from the Suaran port as existing contracts end during 2014. A dredging programme at the Lati port has allowed the load on each barge to be increased from 5,500 to over 7,000 tonnes.

Marketing commissions on the sale of coal have been reduced by 0.5% from 3.5% to 3.0% from January 2014 and discussions on further reductions are underway.

Organic growth

I am pleased to report that we grew production at PT Berau by 11.7% in 2013 to 23.5mt from 21.0mt in 2012. We currently expect 2014 to be another solid year of growth with the incremental production increase forecast to come largely from Binungan. The Company's mine plan envisages growth in production for 2014 of around 10% although that remains dependent upon the successful outcome of our discussions with the Indonesian authorities about increasing the current quota beyond 23mt.

Capital structure

As at 31 December 2013, the Group had net debt of $507m (2012: $514m). We are currently exploring a range of refinancing options to reduce our interest costs.

Health, Safety, Environment and Communities

We run our business in a socially and environmentally responsible way. Employee safety, environmental protection and the wellbeing of local communities are essential to our corporate identity and values. In terms of safety, I am pleased to report that for the second year running, we had no fatalities. It is also pleasing to note that Berau won a Silver Award in 2013 for its performance in both safety and Environmental Management practices.

Outlook

Whilst the coal price may well remain muted in the near term due to supply issues, we believe that the longer term outlook for thermal coal continues to be well underpinned by growth in demand from Asian countries. We believe it will remain a vital source of cost-competitive energy globally for the foreseeable future.

Principal Risks and Uncertainties

The Principal Risks and Uncertainties disclosure can be found at the end of this announcement under Supplementary Information.

Business Unit Performance

In 2013 PT Berau grew production by 11.7% versus 2012 to 23.5 million tonnes, despite operations being suspended at the end of the year because the government imposed production limit had been reached.

The additional coal production was from lower strip ratio, higher margin pits, most notably Binungan 7. This resulted in an overall reduction of the strip ratio by 8% to 8.8 bcm/tonne. All mines at PT Berau performed well throughout the year with weather delays in line with the plan during the first quarter. At the end of the year operations at the small, high cost Sambarata B East pit were suspended resulting in a 500,000t reduction. PT Berau also moved to consolidate its mining contractors from seven to five.

Coal processing and shipping also delivered strong performances for the year, with record shipments at 23.3mt for the year, 10.6 % above the 2012 performance and the vessel loading rate topped 28.1kt/day. PT Berau successfully trialled 330 foot barges between the Suaran port and the Muara Pantai transhipment point, which will result in a more efficient barging operation in the future. In addition dredging of the Segah River near the Lati port has allowed barges to be loaded to in excess of 7,000 tonnes, whereas previously cargos were capped at 5,500 tonnes.

PT Berau's average selling price (on a free on board basis) ("ASP") was $59.6 per tonne for 2013 (2012:$70.9 per tonne), reflecting ongoing weakness in thermal coal markets. The ASP was stronger in the first half because older sales contracts had not expired. Production costs for the year were $38.6/tonne and in line with 2012. Whilst the strip ratio and waste hauling distances were lower, these savings were offset by increased coal hauling distance and the impact of the one week shutdown at the end of the year. In light of the ongoing weak market conditions PT Berau reduced its need for capital expenditure, by rescheduling projects and identifying more cost efficient solutions, this resulted in capital expenditure of $46 million (2012 :$101 million-restated).

In terms of sales by destination, 85% were exports (mainland China: 36%, Taiwan: 19%, India 12%, South Korea: 10%, Rest of Asia: 8%), with the remaining 15% sold domestically into Indonesia.

Conclusion

Now that the long and painful process of the Separation Transaction is complete, with enhanced controls in place and with a number of significant cost reduction programmes underway, I am confident that we are in a better position to deliver value to our shareholders.

Statement of Directors' Responsibilities

Each of the Directors confirm that to the best of their knowledge:

• the condensed consolidated financial standards, which have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and loss of the Group and the undertakings included in the consolidation taken as a whole;

• the preliminary results announcement includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal risks and uncertainties that it faces.

A list of current Directors is maintained on the Company's website: www.asiarmplc.com

This responsibility statement has been prepared in connection with the preliminary results announcement of the Company for the year ended 31 December 2013.

By order of the Board

Nick Von Schirnding

Chief Executive Officer

28 March 2014

Production Report for the Year ended 31 December 2013

PT Berau: Operating Data

* The full year production target of 23mt was reached a week ahead of the end of the year and in line with Indonesian mining regulations, PT Berau therefore stopped producing for the last week of December 2013. Fixed costs continued to be incurred, thus impacting production cost of sales per tonne for the quarter.

The effect of IFRIC 20 on the Production cost of sales is given below:

PT Berau: Production Cost of Sales

Notes

1 Bank cubic metres (bcm) of overburden removed per tonne of coal mined

2 Restated for impact of 'other exceptional costs'

3 Restated for impact of IFRIC 20

Coal mined

Notes

1 Bank cubic metres (bcm) of overburden removed per tonne of coal mined

2 Restated for impact of 'other exceptional costs'

3 Restated for impact of IFRIC 20

Condensed Consolidated Financial Statements

Consolidated income statement

* The 2012 numbers have been restated to reflect the write off of deferred stripping and the associated tax effect thereof resulting from the implementation of IFRIC 20, and the impact of implementing IAS 19 (revised). Refer to Note 3a.

Consolidated statement of comprehensive income

* The 2012 numbers have been restated to reflect the write off of deferred stripping and the associated tax effect thereof resulting from the implementation of IFRIC 20 and the impact of implementing IAS 19 (revised). Refer to Note 3a.

Items in the above statement are disclosed net of tax, the income tax relating to each component of other comprehensive income is disclosed in Note 8.

Balance Sheet

* The 2012 numbers have been restated to reflect the write off of deferred stripping and the associated tax effect thereof resulting from the implementation of IFRIC 20, reclassification of a prepaid lease from other non-current assets to property, plant and equipment and the impact of implementing IAS 19 (revised). Refer to Note 3a.

Statement of Changes in Equity

* The 2012 numbers have been restated to reflect the write off of deferred stripping and the associated tax effect thereof resulting from the implementation of IFRIC 20 and the impact of implementing IAS 19 (revised). Refer to Note 3a.

Statement of Cash flows

* The 2012 numbers have been restated to reflect the reclassification of a prepaid lease from other non-current assets to property, plant and equipment.

NOTES TO THE FINANCIAL STATEMENTS

1. General Information

Further to the approval of shareholders on 17 December 2013, Bumi plc changed its name to Asia Resource Minerals plc, with effect from 19 December 2013. Asia Resource Minerals plc (formerly Bumi plc) (the "Company") is a company domiciled and incorporated in the UK. The address of the registered office is Atlas House, 3rd Floor, 173 Victoria Street, London, SW1E 5NH. The Company along with its main operating subsidiary, PT Berau Coal Energy Tbk ("PT Berau"), a coal mining group of companies listed on the Indonesia Stock Exchange and their subsidiaries comprise "the Group". The Company also holds an investment in PT Bumi Resources Tbk ("PT Bumi") which is also listed on the Indonesia Stock Exchange and which was classified as an associate from the date of acquisition to 30 September 2012 and as an available for sale asset thereafter. PT Bumi is also engaged in coal mining operations and exploration and development of mineral mining concessions.

2. Basis of Preparation

(a) Statement of compliance

The Financial Statements for the year ended 31 December 2013 included in this announcement were authorised for issue in accordance with a resolution of the Board of Directors on 28 March 2014.

The preliminary financial information as at and for the year ended 31 December 2013 included in this report is unaudited and does not have the status of statutory accounts within the meaning of Section 434 of the Companies Act 2006. This preliminary announcement does not constitute the Group's full financial statements for the year ended 31 December 2013. The preliminary financial information is based on accounts which are subject to audit, Board approval and filing with the Registrar of Companies. The financial information for the year ended 31 December 2012 is derived from the statutory accounts for that year, where applicable restated for the introduction of the new accounting interpretation IFRIC 20 "Stripping costs in the production phase of a surface mine", IAS 19 (revised) "Employee Benefits" and the reclassification of a prepaid lease from other non-current assets to property, plant and equipment. Please see Note 3a for the effect to the condensed consolidated financial statements of the changes to accounting standards. The effect of the reclassification of the prepaid lease is to increase property, plant and equipment by $20m and decrease the value of other non-current assets by $20m.

b) Going Concern

In adopting the going concern basis for preparing the financial statements, the Directors have considered the business activities as well as the Group's principal risks and uncertainties. Based on the Group's cash flow forecasts and projections, the Board is satisfied that the Group will be able to operate within the level of its facilities for the foreseeable future. For this reason, the Group continues to adopt the going concern basis in preparing its financial statements.

3. Summary of new accounting policies and reporting changes

The accounting policies applied in these condensed Financial Statements for the year ended 31 December 2013 are consistent with those of the annual Financial Statements for the year ended 31 December 2012, as described in those Financial Statements, with the exception of standards, amendments and interpretations effective in 2013 and other presentational changes.

(a) Standards, amendments, and interpretations effective or adopted in 2013 and other reporting changes

The only standard or interpretation issued implemented in the year, that had a material impact on the accounts are:

i) IFRIC 20 "Stripping costs in the production phase of a surface mine". The adjustment to property, plant and equipment, non-controlling interest and retained earnings is shown in the table below.

ii) IAS 19 (revised) "Employee Benefits". The adjustment to post employment benefit obligations, non-controlling interest and retained earnings is shown in the following table:

(b) Standards, amendments and interpretations that are issued but not yet applied by the Group

The only issued standard not yet applied by the Group which could have an effect on future Financial Statements is IFRS 9 Financial Instruments. The mandatory effective date of this standard has not yet been determined by the IASB, however the Group are continuing to assess the impact that it may have.

Although still in discussion, potential changes to IFRS 10, IAS 27 and IAS 28 relating to the unit of account for investments could have a significant impact. The IASB is proposing to issue an exposure draft in 2014 to clarify the fair value measurement of quoted investments in subsidiaries, joint ventures and associates. The current proposals state that the fair value measurement of an investment composed of quoted financial instruments should be the product of the quoted price of the financial instrument multiplied by the quantity of instruments held. The IASB noted that quoted prices in an active market provide the most reliable evidence of fair value. In the same way, the IASB also tentatively decided that the fair value measurement of cash generating units (CGUs) for impairment testing when those CGUs correspond to a quoted entity should be the product of their quoted price multiplied by the quantity of instruments held. Management continue to monitor the IASB discussions, but maintain their current interpretation of the present standards is that, for consolidated subsidiaries, the individual assets such as goodwill and mining properties should be assessed by reference to how a typical industry participant would value the underlying mining concession, using discounted future cash flows incorporating future development plans. If the fair value of PT Berau was measured on the basis of multiplying the quoted price by the number of shares held, the value would be $451m (2012: $597m). This would lead to an impairment in the Income Statement of $741m in 2013.

4. Segmental analysis

In accordance with the provisions of IFRS 8 'Operating Segments', the operating segments used to present segment information were identified on the basis of internal reports used by the ARM's Board of Directors to allocate resources to the segments and assess their performance. ARM's Board of Directors is the Group's "chief operating decision maker" within the meaning of IFRS 8.

The Board of Directors considers the business from a product perspective and has determined that the Group has one single reportable segment, being coal mining. Information on financial performance and net assets is presented in the income statement and balance sheet and information on underlying earnings and underlying EBITDA.

5. Critical accounting judgements and key sources of estimation uncertainty

The preparation of the consolidated financial statements in accordance with IFRS requires the use of critical estimates and assumptions to determine the value of assets and liabilities, and contingent assets and liabilities at the balance sheet date, and revenues and expenses reported during the year. Due to uncertainties inherent in the estimation process, the Group regularly revises its estimates in light of currently available information. Final outcomes could differ from those estimates. The main judgements and estimates used in preparing the Group's consolidated financial statements are presented below.

5.1 Identification of other exceptional costs

PT Berau's new management conducted an extensive review of the financial position at PT Berau in March 2013 and identified significant expenditure, predominantly in 2012, which had no clear business purpose. These costs had been attributed, by former management, to activities or items which might ordinarily have been of value to PT Berau. In conducting its review, management had to apply judgement in assessing expenditure in 2012 and the first quarter of 2013 to determine the substance of counterparties and whether the services performed or assets acquired were of value to the business. This expenditure has been classified as other exceptional costs and shown separately in the Consolidated Income Statement to separate it from costs incurred in the ordinary course of business.

5.2 Determination of coal reserve estimates

The Group reports its coal reserves in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2012 Edition (the "JORC Code"), prepared and published by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia based on advice from an independent third party working with management in house experts. The term "coal reserve" is defined in the JORC Code as the economically mineable part of a measured and/or indicated coal resource. Coal reserves are subdivided in order of increasing confidence into "probable coal reserves" and "proved coal reserves".

Under the JORC Code, the term "coal resource" refers to a concentration or occurrence of coal of intrinsic economic interest in or on the Earth's crust in such form and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a coal resource are known, estimated or interpreted from specific geological evidence and knowledge. Coal resources are subdivided, in order of increasing geological confidence, into "inferred", "indicated" and "measured" categories.

Reserves and resources determined in this way are used in the calculation of depreciation, amortisation and impairment charges, the assessment of life of mine stripping ratios and in forecasting the timing of the payment of close down and restoration costs and clean-up costs. In assessing the life of a mine for accounting purposes, mineral resources are only taken into account where there is a high degree of confidence for economic extraction.

There are numerous uncertainties inherent in estimating coal reserves, and assumptions that are valid at the time of estimationmay change significantly when new information becomes available. Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the economic status of reserves and may, ultimately, result in the reservesbeing restated.

5.3 Recoverable amount of goodwill and property, plant and equipment

The recoverable amount of goodwill and property, plant and equipment is based on estimates and assumptions regarding, in particular, the expected market outlook and future cash flows associated with the asset. Predicted future cash flows include estimates of future costs to produce, proven and probable reserves and resources, future commodity prices, foreign exchange rates and discount rates.

Judgement and estimation is required for all elements of the future cash flows, but especially the length of the mining licence and the conversion of resources to reserves.

To date, no first generation CCoW has reached its expiration period and therefore there is no precedent for extension, although this is envisaged in the terms of the CCoW. Recent legislation from the Government of Indonesia has indicated that CCoWs may be extended in the form of an Izin Usaha Pertambangan (IUP) issued by the central government. Whilst the terms of the extension would need to be negotiated, the legislation allows for first-term CCoWs, such as that held by PT Berau, to be extended into an IUP without need for a tender. Management has risk adjusted future cash flows based on its estimate of the likelihood of favourable extensions of the mining licence beyond the initial CCoW period to 2035 and subsequently 2045.

Future cash flows are also dependent upon the ability to economically mine in areas where mineable reserves have not yet been established to JORC standards. Judgement is required to support the anticipated conversion of resources to reserves and associated cash flows. Management has based this judgement on their knowledge of the geology and exploration activity conducted in the concession area, prior experience of the conversion of resources to reserves through additional drilling, and an estimate of the production costs and capital expenditure requirements.

5.4 Taxation

Taxes are paid by the Group's subsidiary in Indonesia under a number of different regulations and laws, which are subject to varying interpretations. In addition, these can change frequently and the judicial system does not have well developed rules of precedent. This, in turn, may result in transactions and activities that have not been challenged in the past being scrutinised in greater detail and additional taxes may be assessed based on new interpretations of the legislation and tax positions. Accordingly, management's interpretation of such legislation as applied to the transactions and activity of the Group's subsidiary may be challenged by the relevant authorities.

Under Indonesian tax laws, fiscal periods up until 2007 remain open for 10 years, or until the end of 2013 whichever is earlier and fiscal periods ending after 2007 remain open for five years after the time that the tax becomes due.

At the date of these financial statements, the Group's subsidiary, PT Berau has received several tax assessment letters that are not yet finalised. PT Berau has filed objections and/or appeals that are still in process or pending decisions, the outcomes of which are not presently determinable. Management believes that its interpretation of the relevant legislation is appropriate and the tax position included in these financial statements will be sustained.

5.5 VAT recoverable

There is an ongoing dispute with the Government of Indonesia which resulted from a change in the VAT law in 2001 when coal became a VAT exempt supply. This change meant that PT Berau could no longer claim credits for its input VAT on purchases. However, under the Coal Contract of Works (CCoW), PT Berau is indemnified against Indonesian taxes not in effect at the time of signing of the CCoW. On this basis, PT Berau claimed reimbursement for input VAT paid from 2001. The claims were rejected and PT Berau began setting off the VAT receivable against royalty payments due under the CCoW. The VAT receivable and royalty payable amounts have been presented separately on a gross basis within trade and other receivables and trade and other payables, respectively. Whilst there is no current indication that the amount may not be recoverable, PT Berau management believes that there may be a low risk that the receivable may not be recovered in whole or in part.

6. Other Exceptional Costs

As discussed in the Asia Resource Minerals plc (formerly Bumi plc) 2012 Annual Report, new management at PT Berau conducted an extensive review of the financial position of PT Berau in March 2013 and identified significant expenditure, which had no clear business purpose. Previous management at PT Berau had attributed these costs to hauling roads and other construction in progress, land related payments, consulting services and acquisition related goodwill. The expenditure was predominantly incurred in 2012, however expenditure of a similar nature was also incurred in January and February 2013 under previous management and accordingly this has also been presented as other exceptional costs. These amounts are shown separately in the Consolidated Income Statement to separate them from costs incurred in the ordinary course of business.

An analysis of other exceptional costs is set out below:

7. Underlying earnings and underlying EBITDA

The Group presents underlying earnings and underlying earnings before interest, tax, depreciation and amortisation ("underlying EBITDA") as additional measures to provide greater understanding of the underlying business performance of its operations. Underlying earnings and underlying EBITDA exclude separate items. Separate items are those items of financial performance that the Group believes should be separately disclosed. Separate items include, when applicable, impairment of goodwill and other assets, costs of acquiring and integrating acquisitions, fundamental restructuring of business, profit or loss on disposal of a business or significant other asset material claims and settlements, other exceptional costs and significant gains and losses on derivative instruments.

The results of PT Bumi, which were treated as an associate for the nine months to 30 September 2012, have been excluded from underlying earnings and underlying EBITDA as PT Bumi is being held for sale and it no longer represents a part of the ongoing operations of the Group.

The adjustments made to net earnings to arrive at underlying earnings and underlying EBITDA are explained below:

* The 2012 numbers have been restated to reflect the write off of deferred stripping and the associated tax effect thereof resulting from the implementation of IFRIC 20.

8. Taxation

* The 2012 numbers have been restated to reflect the write off of deferred stripping and the associated tax effect thereof resulting from the implementation of IFRIC 20 and the impact of implementing IAS 19 (revised).

The deferred tax credit primarily relates to the release of $66m (2012: $60m) of the deferred tax liability linked to the depreciation of mining properties recognised in the Purchase Price Allocation following the acquisition of PT Berau.

Significant judgement is required in determining the Group's income tax liabilities. In arriving at the current and deferred tax liability the Group has taken account of tax issues that are subject to on-going discussions with the relevant tax authorities. Calculations of these liabilities have been based on management's assessment of legal and professional advice, case law and other relevant guidance. Where the expected tax outcome of these matters is different from the amounts that were recorded initially, such differences will impact the current and deferred tax amounts in the period in which such determination is made.

The tax (charge) / credit relating to components of other comprehensive income is as follows:

9. Earnings per share ("EPS")

The calculation of earnings per ordinary share is based on profit attributable to ordinary shareholders of the Company and the weighted average number of ordinary shares in issue during the year. In addition to the earnings per share required by IAS 33 "Earnings per Share", underlying EPS has also been calculated and is based on earnings excluding the effect of separately disclosed items. It has been calculated to allow shareholders to have a better understanding of the trading performance of the Group. Details of the underlying EPS are set out below:

* The 2012 numbers have been restated to reflect the write off of deferred stripping and the associated tax effect thereof resulting from the implementation of IFRIC 20.

10. Intangible Assets

1 This represents goodwill arising on the acquisition of PT Pelayaran Sandita Perkeson Maritim Tbk, PT Kirana Berau and PT Manira Mitra where the excess consideration above the fair value of assets acquired had no business purpose. This was written off to other exceptional costs in 2012.

Impairment tests for goodwill

Goodwill arising through acquisitions has been allocated to individual or Groups of cash generating units (CGUs), each representing the lowest level in the Group at which goodwill is monitored for internal management purposes.

The carrying value of the Group's goodwill of $518m has arisen on the acquisition of PT Berau on 4 March 2011, which is treated as the Group's sole CGU.

The Group's annual impairment review resulted in no impairment charge for the year. PT Berau's recoverable amount has been assessed based on fair value less costs of disposal using discounted cash flows. The discounted cash flow model used to determine the recoverable amount is a level 3 model in the fair value hierarchy as it's valuation includes management assumptions on key unobservable data that significantly affects the fair value.

Expected future cash flows are inherently uncertain and could materially change over time. They are significantly affected by a number of factors including ore reserves and production estimates, commodity prices, discount rates, future operating costs and capital expenditure. Cash flow projections are based on financial budgets and production plans to the end of the Coal Contract of Work (CCoW), including two 10 year extensions, appropriately risk adjusted.

The key assumptions relating to the calculation of PT Berau's fair value less costs of disposal are the long term thermal coal price; production volumes operating costs; and discount rates.

The medium term (2014 to 2018) forecast benchmark thermal coal price is within the range supported by market analysts of $85 to $105 per tonne (2012: $90 to $113 per tonne) in nominal terms. This price is then adjusted for various coal quality parameters, such as calorific value, moisture and sulphur content, to derive the expected realised selling prices on a free on board (FOB) basis.

Post tax cash flows were estimated for the period of the Coal Contract of Work (CCoW), and discounted using a post tax discount rate of between 9.9% and 10.4% (2012: 9.8% and 10.5%) expressed in nominal terms. The operating costs included in the fair value assessment are calculated based on PT Berau's production plans taking into consideration PT Berau is asset optimisation strategies for the remainder of the CCoW. Price assumptions for inputs are based on analysis of market fundamentals and are made consistent with related output price assumptions. The Coal Contract of Work expires in 2025, with further extensions permitted, subject to terms and conditions being agreed. Management has included two 10 year extensions in the fair value less costs of disposal at 31 December 2013, with additional risk adjustments as appropriate.

The excess of recoverable amount over carrying value is around $220m. Whilst the Directors remain confident in the assumptions used in determining the recoverable amount, it is estimated that the following adverse changes in key assumptions would lead to corresponding decreases in fair value less costs of disposal, and would lead to an impairment charge in the year:

Each of the sensitivities above was determined assuming the relevant key assumption moved in isolation, except where modifying the thermal coal price directly affects certain input costs, and further assumes that management does not take any mitigating actions. However, this is for disclosure purposes and under those circumstances management could take mitigating action such as changes to the mine plan, cost reduction initiatives and additional sales strategies.

11. Available for sale financial asset - PT Bumi

From 30 September 2012, the investment in associate was reclassified as an available for sale asset.

The available for sale financial asset consists of 6,061,699,637 ordinary shares in PT Bumi that are quoted on the Indonesia Stock Exchange and are denominated in Indonesian Rupiahs. The valuation of the available for sale financial asset at 30 September 2012, 31 December 2012 and 31 December 2013 has been calculated using the closing bid price for PT Bumi ordinary shares quoted on the Indonesia Stock Exchange on the last working day prior to the relevant dates and the closing US dollar exchange rate against the Indonesian Rupiah. The exchange rates used at 30 September 2012, 31 December 2012 and 31 December 2013 were Rps 9,569: $1 and Rps 9,613: $1 and Rps 12,203: $1 respectively.

12. Consolidated cash flow analysis

Reconciliation of loss before tax to cash flows generated from operations

* The 2012 numbers have been restated to reflect the write off of deferred stripping and the associated tax effect thereof resulting from the implementation of IFRIC 20 and the reclassification of a prepaid lease from other non-current assets to property, plant and equipment.

13. Contingent asset - Litigation recoverable with R Roeslani

On 26 June 2013, the Company and Rosan Roeslani, the former President Director of PT Berau, entered into a settlement agreement providing for the return of $173m to PT Berau, either as assets or cash. The amount is considered as a contingent asset as recovery is not certain and therefore it is not appropriate to recognise a receivable.

There were no significant contingent assets in the Group at 31 December 2012.

14. Related Party Transactions

In the 2012 Bumi plc financial statements, the related party disclosures included transactions for which there was no clear business purpose and where the ultimate beneficiary was unknown. Following the replacement of the Berau President Director on 7 March 2013, controls regarding related party transactions have been enhanced. Prior to 7 March 2013, a further $6m of expenditure was incurred where the ultimate beneficiary was unknown and the business purpose was not clear, as disclosed in Note 6.

The most significant related party transactions in the year to 31 December 2013 are with Bakrie related entities in relation to fuel supply and mining contractor services. These contractual arrangements are in the ordinary course of business and are considered by management to be on acceptable commercial terms. Ongoing transactions with the Recapital related companies, controlled by Rosan Roeslani, all in the ordinary course of business, have been reduced in the latter part of the year. After 7 March 2013, Recapital related entities ceased to be related parties of ARM.

Related party debtors at 31 December 2012, included $7.1m due from PT Bukit Mutiara, an entity controlled by Recapital. Although no longer considered a related party at 31 December 2013, this amount is overdue and provided for whilst the company pursues repayment.

15. Subsequent events

Separation transaction

On 25 March 2014, ARM completed its disposal of PT Bumi to the Bakrie Group for a cash consideration of $501m.

Supplementary Information

PRINCIPAL RISKS AND UNCERTAINTIES

Risk management

The Board continues to identify, evaluate and manage the risks which the Group and the wider sector face. The risks to which the Group is exposed at any point in time in pursuing its strategic objectives cover a wide range of factors: competition, legislative, fiscal, political, financial, economic, social, reputational and operational. Each could impact EBITDA, operating profits, net assets and liquidity.

The main risks currently facing the Group have been assessed against a backdrop of robust competition from local and foreign producers and a weakening in the Newcastle benchmark of 7.7% over last year. This has prompted a major cost optimisation programme to reduce operating costs wherever possible and management has looked at ways of reducing capital expenditure to minimise the impact on earnings and cash flows. Similar actions are being taken across the sector in Indonesia.

Accordingly, the principal risks and uncertainties which are specific to ARM at this point in time, together with the actions that management is taking to mitigate each, are set out below.

The Board continues to pay particular attention to the effectiveness of management's mitigating actions and progress is monitored in each area.