JATCORP LIMITED — Capital/Financing Update 2011

Aug 21, 2011

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ASX/Media Release

22 August 2011

Jatenergy Proceeds With Second Fast-toProduction Coal Mine in Indonesia

Jatenergy Limited (ASX code: JAT) today announced it had reached conditional agreement for a new coal mining joint venture in East Kalimantan that is expected to move rapidly into coal production.

The Jongkang project, located 5 km along an existing haul road from the Mahakam River and about 25km from a major hub of Indonesia’s coal industry at Samarinda, is being developed by an existing coal mine operator, CV Wijaya Mulia. Jatenergy has signed a heads of agreement with that Indonesian company, which is well known to Jatenergy’s Chief Operating Officer – Indonesia, Chris Flanagan.

The transaction involves Jatenergy covering the working capital costs of the operation, expected to be a maximum of US$2 million, while gaining the rights to 30% of the mining margin and the ability to market 100% of the coal produced. The transaction is subject to final legal and technical due diligence, which is expected to take about four weeks, and the development of the mine is expected to progress quickly, given CV Wijaya Mulia is already mobilised on an adjacent site. A production license is expected to be granted for Jongkang by the end of September, along with the execution of a final JV agreement.

CV Wijaya Mulia will provide the tenements and management team, while the mining, haulage and shipping will be undertaken by experienced contractors which currently operate two adjoining mines for the owners of CV Wijaya Mulia. The owners of CV Wijaya Mulia have been in coal operations for over ten years.

Jatenergy’s Chief Executive Phil Hodgson said that the cash flows expected next year from Jongkang and also the company’s Atan Bara coal project would be used to fund further development of the company., “Once we achieve cash flows, they will be used to fund a very important development program for Jatenergy, to define and hopefully mine coal from our Katingan project in Central Kalimantan,” he said. “When proven, Katingan will become Jatenergy’s showcase operation.”

Katingan has a potential exploration target of 36.4 - 43.1 million tonnes of medium quality thermal coal and is located in central Kalimantan. Drilling to define a JORC resource is scheduled to commence during the second half of 2011, once cash flows are established. Future work may or may not delineate or outline this target in part or in whole.

Other ventures in central Kalimantan include BHP Billiton’s Maruwai project, which is expected to cost up to $US1 billion and produce 6 million tonnes a year. Realm Resources has committed $27 million for a 75% stake of a project called Katingan Ria, which has an inferred resource of 40.1 million tonnes. A third Australian company, Cokal, has bought into four exploration areas in central Kalimantan with the aim of developing a coking coal operation.

Indonesian Department of Mines records say that the coal associated with the new project is of high thermal quality with high gross calorific value (6400-6674 kcal/kg adb), sulphur below 1%

Floor 6, Suite 8, 55 Miller Street, PYRMONT NSW 2009

t +61 2 9571 8300 f +61 2 9571 8200 w www.jatenergy.com

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and low ash and moisture. The Department records also show that Jongkang contains five coal seams ranging between 0.2m and 1.6m in thickness. FOB Barge prices for this type of coal are conservatively estimated at US $ 85 to $ 90 per tonne, based upon the latest Indonesian Coal Reference Price (HBA) as sourced from DJMBP – ESDM, Indonesia.

“Adding a second fast-to-production mine to our portfolio ahead of plan is a great testament to our local team,” Mr Hodgson said. “Given the opportunity to leverage Wijaya Mulia’s current operational infrastructure for mining and export, we expect we can develop the mine quickly and generate revenues this year.”

Jatenergy is also currently conducting an Entitlement Issue in which eligible shareholders are offered one option for every two shares held as at 23 August 2011. The issue is expected to raise approximately $393,000 before costs. The Entitlement Issue Prospectus will be dispatched to shareholders shortly and is available on the company’s web site.

For further information:

Phil Hodgson, Jatenergy Chief Executive Officer – 02 9571 8300 Media: Alan Deans, Last Word Corporate Communications – 0427 490 992

About CV Wijaya Mulia and the Jongkang Project:

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Competent Person’s statement

The information in this announcement which relates to Exploration Results, Mineral Resources or Ore Reserves, is based on information compiled by Mr Allen J Maynard, who is a member of the Australian Institute Geosciences and a corporate member of the Australasian Institute of Mining and Metallurgy. Allen Maynard is the principal of Al Maynard & Associates Pty Limited (ACN 102 492 435) and has over 30 years of exploration and mining experience in a variety of mineral deposit styles. Mr Maynard has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves. Al Maynard & Associates Pty Limited consents to the inclusion in this announcement of the matters based on their information in the form and context in which it appears.

About Jatenergy

Jatenergy is an energy company operating in Australia and Asia that has recently expanded its energy portfolio from biofuel to include coal through the purchase of two mining projects in Indonesia’s Kalimantan coal region, and the execution of binding agreements to purchase 10 coal exploration permits and permit applications in Queensland’s Bowen and Galilee basins.

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Recent ASX/Media Releases

20 June 2011

JATENERGY EXECUTES AGREEMENTS FOR QLD COAL TENEMENTS

Jatenergy has executed tenement purchase and royalty agreements to purchase 10 coal exploration permits and permit applications in the Galilee and Bowen Basins. The agreements formalise the binding offer letters announced by the company on the 8th of February and the 19th of May.

http://clients.weblink.com.au/clients/jatoil/article.asp?asx=JAT&view=2638166

31 May 2011

JATENERGY FAST TRACKS INDONESIAN COAL DEVELOPMENT PLANS

Jatenergy has approved several significant strategic initiatives to advance its new dual energy strategy, including the rapid development of the Atan Bara coal mine in East Kalimantan, Indonesia, and the appointment of an experienced coal Chief Operating Officer to its Indonesian operations.

NOTE: The announcement of 31 May 2011 outlined a proposed production forecast of 20,000 ton per month in relation to Atan Bara. JAT wishes to withdraw this statement and advises shareholders not to rely on this estimate for any purpose due to the preliminary nature of the forecast.

http://clients.weblink.com.au/clients/jatoil/article.asp?asx=JAT&view=2636242

18 May 2011

JATENERGY EXPANDS QUEENSLAND COAL DEAL INTO BOWEN BASIN

Jatenergy has concluded a revised binding offer letter to acquire six additional coal exploration permits and permit applications in the Bowen Basin, the homeland of Queensland’s coal export industry. The deal continues to include the acquisition of four Galilee Basin permits and permit applications announced early in February.

http://clients.weblink.com.au/clients/jatoil/article.asp?asx=JAT&view=2635108

8 February 2011

JATOIL IN COAL DOUBLE PLAY AFTER SIGNING QUEENSLAND DEAL

Jatoil has executed a binding letter of intent to acquire four coal exploration permits and permit applications in the Galilee Basin in central Queensland. The deal strengthens Jatoil’s dual energy strategy, which is currently being initiated through the pending acquisition of two coal assets in Kalimantan, Indonesia.

http://clients.weblink.com.au/clients/jatoil/article.asp?asx=JAT&view=2623033

4 February 2011

JATOIL ESTABLISHES ENERGY TRADING DIVISION AS SALES RAMP UP

Jatoil is to trade energy commodities from this year as a core part of its business, and has strengthened its Singapore operations by appointing an experienced energy commodities trader, Nick Croom, to the boards of its Singapore subsidiaries. http://clients.weblink.com.au/clients/jatoil/article.asp?asx=JAT&view=2622770

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3 February 2011

JATOIL BIOFUEL PRODUCTION PASSES 200 TONNES – ALL FOR MAJOR AIRLINES Jatoil achieved production of 200 tonnes of crude jatropha oil (CJO), all of which will be shipped and used as a feedstock for keenly sought after biojet aviation fuel for use by commercial airlines.

http://clients.weblink.com.au/clients/jatoil/article.asp?asx=JAT&view=2622586

13 December 2010

CHINESE INVESTOR BECOMES CORNERSTONE SHAREHOLDER IN JATOIL Jatoil executed a share subscription agreement with a company owned by a Chinese electric power and road infrastructure developer, Mr Li Xipeng. Sheng Run Holdings Group (Australia) Pty Ltd has been issued 17,144,888 fully paid ordinary shares in Jatoil at $0.04 per share, to raise $685,796. The placement represents 13.04% of Jatoil’s issued capital. http://clients.weblink.com.au/clients/jatoil/article.asp?asx=JAT&view=2617058