Cloudified Holdings Limited Regulatory News (CHL)

10 May 2013

AIM: CHL

CHURCHILL MINING PLC

("Churchill" or "the Company")

Churchill files its Supplemental Memorial concerning its claim for damages in the International Arbitration against the Republic of Indonesia 

The Directors of Churchill Mining PLC (AIM: CHL) wish to advise that, further to the Memorial filed by them on 13 March 2013, the Company and its 100% owned Australian subsidiary, Planet Mining Pty Ltd "Planet" (which, via its 5% shareholding in PT Indonesia Coal Development, also holds an interest in the East Kutai Coal Project), have now filed with the Arbitration Tribunal at the International Centre for Settlement of Investment Disputes ("ICSID") their Supplemental Memorial and supporting expert evidence concerning their claim for damages in their international arbitration against the Republic of Indonesia ("ROI").

Planet had previously filed its own Request for Arbitration against the ROI before ICSID pursuant to the Australia-Indonesia Bilateral Investment Treaty. It has been agreed that the Planet claim and Churchill claim will be adjudicated in one consolidated ICSID proceeding.

Churchill and Planet have engaged and are represented in the ICSID arbitration by the highly regarded international law firm Quinn Emanuel Urquhart & Sullivan.

Key elements within the Memorials include:-

·; Churchill/Planet invested in Indonesia in compliance with applicable laws and regulations;

·; Indonesia initially supported and encouraged Churchill/Planet to invest;

·; After Churchill/Planet's discovery of substantial coal deposits, the ROI took a series of unlawful actions that resulted in the destruction of Churchill/Planet's valuable investment;

·; The actions of the ROI constitute blatant violations of the obligations it has undertaken under its Bilateral Investment Treaties with the United Kingdom and Australia; and

·; Churchill/Planet presently quantify their losses and seek damages in the amount of USD 1,054 million (excluding interest) based on an industry-standard Discounted Cash Flow analysis.

Next Steps

The next steps in the arbitration are that the ROI has filed a challenge that the Arbitration Tribunal does not have the jurisdiction to hear Churchill/Planet's claim for compensation. The ROI filed its Memorial on Objections to Jurisdiction on 8 April 2013 and Churchill/Planet filed their Reply to the ROI's Objections to Jurisdiction on 30 April 2013. A hearing on jurisdiction is scheduled to be held in Singapore on the 13th / 14th May 2013.

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