INDONESIAN STRATEGY

ARC EXPLORATION'S INDONESIAN STRATEGY

Arc Exploration's Indonesian growth strategy is founded on:

• Utilising Arc Exploration's Indonesian relationships and expertise to explore epithermal gold systems for new deposits. Arc Exploration's participation in the joint venture (95% ARX) for the Trenggalek KP and Bima KP herald an expansion in exploration activity in Indonesia that is expected to generate new project opportunities for the Company in the future.

• Arc Exploration has a Strategic Alliance with Anglo American Group to explore for large copper/gold porphyry deposits in the Provinces of Papua and West Papua in Indonesia. Together with Anglo, Arc Exploration believes that these areas are highly prospective for large copper gold porphyry deposits and the Alliance has the potential to add very significant value to Austindo - and work has now commenced in this regard.