Pepcap’s Core Thermal Coal Assets

Bituminous Coal

In May 2015 Pepcap Resources Inc. (“Pepcap”) completed the acquisition of 51% of the total issued and outstanding shares of Asia Mining Management B.V. with the result that Pepcap holds an indirect controlling interest in PT. Krida Darma Andika, a 99.6% owned subsidiary of Asia Mining that owns mining concessions in Sumatra, Indonesia.

Divided into two coal blocks, including three coal concessions, located in the Napal Putih and Putri Hijau districts of North Bengkulu Regency of Bengkulu Province, Indonesia, these coal concessions are Pepcap’s sole development projects.


Project Highlights from NI-43101 (January 2015)

Production license

Has been granted for commencement of mining Pursuant to Article 34 Paragraph (2) of Government Regulation No. 23 of 2010 on the Implementation of Mineral and Coal Mining Business states: Exploration IUP holder is guaranteed to obtain the IUP Operation Production as an enhancement to apply for and meet increasing requirements of production operations.


Geological Setting and Mineralization

Concessions coal seams range in thickness and are measured as thick as 5.9 meters in areas. The main seams in the geological area are as large as 10-12 meters thick.


Market Studies and Contracts

Coal from this significant mining area is exported to both China and India.


Fair Value of the Mineral Assets IMC-SRG Consulting (P) Limited

Thermal Coal

Based on the study conducted to examine the worth of the property, in terms of $/ha, Project Number: IMC-SRG 913 December 2013 has determined the value of the concessions PT KDA-164, PT KDA-165 and PT KDA 288 to be ~ 11 Mil USD for 100% or approximately $13.6 million CAD.


Project and Location

Concession 164 & 165 (2000 Hectares):

> Production license has been approved and granted for commencement of mining operations.  Production operations are expected to begin in 2015 with mine site design, open pit contracting.

> The concession is host to thermal coal with a Gross Caloric Value (“GCV”) of 5662-6149 ADB, which is among the most common coal used for power generation in Asi.

Concession 288 (7000 Hectares):

> Exploration license has been approved for exploration but has not commenced.  Exploration drilling is scheduled for 2015 under a defined work program.

> Approximately 15 kilometers from 164 & 165, management anticipates 288 to have similar positive geological characteristics in its vast 7000 Hectares and holds potential for a large “bonanza” coal reserve of similar quality.