News

New Subsidiary - Pt. Pipit Mutiara Indah ("PMI")

Type	:	Announcement
Subject	:	New subsidiary - PT. Pipit Mutiara Indah ("PMI")

Contents :

1. INTRODUCTION
The Board of Directors of QL Resources Berhad ("QL") is please to announce that its 78.421% subsidiary, namely QL Mutiara (S) Pte. Ltd. has subscribe to shares in PMI, pursuant to the Master Joint Venture Agreement which was announced on 16 August 2006.

2. INFORMATION ON PMI
PMI was incorporated in Tarakan, East Kalimantan under the laws of the Repulic of Indonesia via Deed of Establishment signed on 29 April 2004 and approved by the Ministry of Justice and Human Rights by its decision letter dated 15 July 2004 and registered at the Company Registration Office on 23 August 2004.

Upon subscription of shares by QL Mutiara (S) Pte. Ltd., PMI has an authorised capital of Rp.31,297,000,000.00 divided into 625,940 shares with a nominal value of Rp.50,000.00 each share. QL Mutiara (S) Pte Ltd holds Rp.29,732,150,000.00 divided into 594,643 shares representing 95% of paid-up capital of PMI. The remaining 31,297 shares is held by PT. Pipit Citra Perkasa, the promoter pursuant to the Master Joint Venture Agreement. Therefore QL via QL Oil Sdn. Bhd. ultimately owns 74.5% of the share capital of PMI.

3. FINANCIAL EFFECTS
There is no material impact on the consolidated net assets and earnings of QL for the financial year ending 31 March 2008.

4. APPROVAL REQUIRED
Approval from shareholders were obtained on the Extraordinary General Meeting on 25 November 2006.

5. DIRECTORS' AND MAJOR SHAREHOLDERS' INTEREST
Save and accept for Mr Chia Song Kun, Mr Chia Seong Fatt, Mr Chia Mak Hooi, Mr Chia Song Kooi and Mr Liu Sin who are acting as Commissioner/Directors of PMI representing the interest of QL, none of the other directors, major shareholders of the Company or persons connected to them have an interest, direct or indirect, in PMI.