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A N NUA L R E P O R T

CHURCHILL

MI N IN G P L C

Directors

Dav d Quin i\'an N1hol.>$ Smith Gregoty Radke F.»ra Luw J

Kuc1n V¢elclmcl:'li

N,lc.ita Rossi'sky

Company Secretaries

Stophon Rldso'

Re11 Hdt

Registra r

SN,o Rog wars Ltd Su'tc E. Fust F cor

9 t..,o' and lamb Yarc Frnham. Su'ey GU9 ill UMeo Kingdom

Bankers

HSBC Banlc Pfc

94 Kensington H19h Strce:

loodon V 4SH UMeo Kingdom

Australian Office

41 Yo, Sttcet

Sub,aco WA 6008

AuW.'>l i.l

Solicitors Cl,fford Chance Leve 7

190 St GeorgTcrtc'KC

PenhWA 6IXX)

Ronaldsons LLJ> SSGo... ,Street loncon Vi.,ClE 6HO United K,,-gdom

Registet''ed Office SSGo,,cr Street London V\:Cl E 6HO United K ngdom

Indonesian Subsidiary Office

\V.sma Kosgoro Bu ld,ng

18:h Floor JI MHTh:,mr1n 53

.J.>k..'>rt.> PUS.>t 103$)

Re.xibl,c of lndones,a

Auditors

BOO LLP

55 Saker StLoncon W1lJ 7EU Un,tcd K r gdorn

CHURCHILL

MINING P LC

CHAIRMAN'S STATEMENT

Dear Shareholder,

I present Churchill Mining Plc's ('Churchill' or the 'Company') Full Year Report for the 12 months ended 30 June 2015.

Introduction

During the year the Company continued to actively pursue its claim - currently quantified at US$1.315 billion plus interest from July 2014 - against the Republic of Indonesia ('Indonesia') for unlawful measures taken by Indonesia against Churchill's interests in the East Kutai Coal Project ('EKCP').

The unlawful measures taken by Indonesia include Indonesia's revocation (without justification, compensation or due process) of the mining licences that underpinned the EKCP (the 'EKCP licences'), which were held by Churchill and its local partner in the project, the Ridlatama Group.

At the time the EKCP licences were illegally revoked, Churchill and its wholly owned subsidiary Planet Mining Pty Ltd's ('Planet') held a 75% interest in the EKCP. The area covered by the EKCP licences (i.e. the EKCP) contained a JORC Resource of 2.8 billion tonnes and incorporated a JORC Reserve of 980 million tonnes.

Churchill brings its claims against Indonesia under the United Kingdom-Indonesia Bilateral Investment Treaty (the 'UK BIT'); Planet's claim - which is being run in consolidation with Churchill's case - is brought under the Australia-Indonesia Bilateral Investment Treaty (the 'Australia BIT').

The consolidated Churchill/Planet arbitration is being conducted at the International Centre for Settlement of Investment Disputes ('ICSID'). The arbitral tribunal hearing the case comprises highly- credentialed arbitrators: Professor Gabrielle Kaufmann-Kohler (Chairperson) from Switzerland, Professor Albert Jan van den Berg from the Netherlands and Judge Michael Hwang SC from Singapore.

In legal terms, Churchill and Planet's causes of action are brought primarily under the expropriation and 'Fair and Equitable Treatment ('FET') provisions of the respective treaties.

Developments in the ICSID arbitration

As I explained last year, Indonesia objected to the ICSID tribunal's jurisdiction to determine Churchill and Planet's claims, but these objections were dismissed (i.e. the tribunal upheld jurisdiction).

However, on 25 September 2014, Indonesia filed an 'Application for Dismissal of Claimants Claims' based on Forged and Fabricated Ridlatama Mining Licences' (the 'Forgery Dismissal Application').

In the Forgery Dismissal Application, Indonesia's main contentions were as follows:

• The Ridlatama licences were never the property of either Ridlatama or Churchill;

  
  

• The areas of land covered by the Ridlatama licences were at all times the property of companies within the Nusantara Group;

  
  

• Ridlatama forged the licences for General Survey and Exploration (and related approvals and recommendations) as part of a 'massive, systematic and sophisticated scheme to defraud the Republic';

CHURCHILL MINING PLC 3

ANNUAL REPORT 2015