JATCORP LIMITED — Capital/Financing Update 2013

Mar 24, 2013

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JATENERGY LIMITED ABN 31 122 826 242

ASX CODE: JAT

ASX ANNOUNCEMENT

25 March 2013

Jatenergy to invest in new Indonesian coal asset

AUSTRALIAN REGISTERED OFFICE

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

CONTACT DETAILS Telephone +61 2 9571 8300 Facsimile +61 2 9571 8200 Email enquiries@jatenergy.com Web www.jatenergy.com

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HIGHLIGHTS

• Jatenergy to invest up to $650,000 in Geronggang coal project.

• Investment expected to result in Jatenergy’s third operating Indonesian coal mine.

• Two new MOUs signed for two additional Indonesian coal and iron ore projects.

The board of Jatenergy Limited today announced that it is has decided to invest in a new Indonesian coal asset. Following completion of its due diligence on the Geronggang Coal Project, the company is looking to invest up to $650,000 in this new coal asset. Should this project proceed to production as expected, this would bring to three the total number of Jatenergy’s actively producing Indonesian coal mines.

Jatenergy’s fully-owned Indonesian subsidiary, PT Barata Energy, has also signed two additional exclusive memoranda of understanding ( MOUs ) with PT Saijaan Prima Coal ( SPC ) and PT Platinum Prima Iron ( PPI ), for the establishment of additional coal and iron ore mining ventures.

Geronggang Coal Project

On 3 December 2012, Jatenergy announced that it had signed an exclusive MOU with SPC in relation to a 183 hectare property in an area known locally as Geronggang, within the Kotabaru regency in South Kalimantan ( Geronggang Coal Project ).

The MOU was effective for three months, during which time we have been conducting economic, geological and legal due diligence on the project. Following successful completion of this due diligence, Jatenergy is now looking to invest up to $650,000 (with an expectation the amount can be limited to less than $500,000) to develop the project, and is actively seeking an investor to fund the other half of the project cost.

www.jatenergy.com

The location of the Geronggang Coal Project is shown on the accompanying map. The project area has previously hosted small-scale mining operations and is located within an area with several active coal mines.

Sebuku Project

One of the two new MOUs signed by Barata Energy covers a 198 hectare property on the Indonesian island of Sebuku ( Sebuku Project ), as shown on the accompanying map. Sebuku lies off the southeast tip of Borneo, just south of the Geronggang Coal Project area. The property is the subject of a production IUP and is prospective for coal and iron ore.

The MOU with SPC for the Sebuku Project is effective for three months, during which time Jatenergy will conduct economic, geological and legal due diligence on the project.

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Sungai
Durian Jetty Ujung
Sampanan Geronggang
Iron Ore Project Sungai
Rampa Bali
Camp
Jetty PT SILO
Mine
Sebuku Project
Sang Sang Kelumpang
Utara Serakaman
Belambus
PT BCS
Mine
Mandin
Kelumpang Kelumpang
Tengah Tengah
Kanibungan
PT BCS
Geronggang Camp
Coal Project
Senakin
Jetty Sekapung
Kelumpang Selatan
2 km
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The Geronggang Coal and Iron Ore Projects and located in close proximity to one another near the southeast cost of Kalimantan.

The Sebuku Project is located on the island of Sebuku, near existing coal and iron ore mines and just south of the Geronggang project area.

www.jatenergy.com

Geronggang Iron Ore Project

The second of the two new MOUs covers a 7254 ha concession hosting a large laterite iron ore deposit. The project is currently owned by PT Platinum Prima Iron ( PPI ), an 80% owned subsidiary of SPC. The MOU with PPI for this project is effective for three months, during which time Jatenergy will conduct economic, geological and legal due diligence on the project.

Staged investment model

In making its investment in the Geronggang Coal Project, Jatenergy is looking to apply the same staged and profit-sharing investment model that has been successfully used for its Jongkang I and II mines. Under this model, Jatenergy and its investment partner would make an initial 50% investment upon signing of a binding agreement with SPC. Four to six weeks later and after final presentation of a mine plan for production, a final payment would then be made. To maintain its cash reserves, Jatenergy is looking for an investment partner to share half of this investment. After royalties are paid to the project owner, any profits from the venture ld be shared 50:50 between Jatenergy and its investment partner.

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Under its investment model, Jatenergy will not directly own the Geronggang Coal asset but will retain an interest in any profit it generates. This model, which has been successfully applied to the Jongkang mines, provides Jatenergy with tax benefits and avoids any legal liabilities arising from the mining operations. Jatenergy expects to use the same model for any further investments into Indonesian coal or iron ore assets.

About PT Saijaan Prima Coal

PT Saijaan Prima Coal (SPC) is an Indonesian-registered trading company established in South Kalimantan in 2004 and privately-owned by a wealthy Indonesian family. The company’s shareholders also own a number of other coal mining concessions in the Geronggang area. Jatenergy is continuing discussions with the SPC shareholders regarding further potential joint ventures and access to the port facility.

SPC owns a proposed jetty facility near the Geronggang projects that is expected to be capable of taking 300 ft barges at Tanjung Batu. This proposed jetty is still in the process of being licensed. It has been approved at a local level, with approval pending from the central Indonesian government. The proposed jetty is connected to the Geronggang Coal Project area by a 4–5 km hauling road, which will require some investment to fund refurbishment. The proposed jetty site lies on a 9 hectare parcel of land, which could be used for coal blending, screening and crushing.

www.jatenergy.com

About Jatenergy

Jatenergy Limited is a Sydney-based diversified energy company operating in both Australia and Asia. Jatenergy’s strategic focus is on producing cash returns from its coal and jatropha assets as well as implementing the proprietary Coal Plus technology for upgrading low grade coal into high value energy products.

Media and management contact

Tony Crimmins +61 2 9571 8300 t.crimmins@jatenergy.com skype tony.crimmins

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About Jatenergy

Jatenergy Limited is a Sydney-based diversified energy company operating in both Australia and Asia. Jatenergy’s strategic focus is on producing cash returns from its coal and jatropha assets as well as implementing the proprietary Coal Plus technology for upgrading low grade coal into high value energy products.

Directors

Tony Crimmins Executive Chairman

Richard Pritchard Non-Executive Director

Mr Xipeng Li Non-Executive Director Mr Wilton Yao Alternate Director

Jatenergy Limited ABN 31 122 826 242 ASX code JAT Ordinary fully paid shares 98,565,568 Listed options 31,898,547

www.jatenergy.com