Straits Resources expects production increases across all commodities at its Australian and Asian operations during the second half of 2007.

The forecast follows the first half of the year during which the company positioned itself to take advantage of the ongoing strength in global commodity markets. The impact of a number of project expansions should be earnings positive in 2008.

The Sebuku coal mine in Indonesia achieved first quarter production in line with

expectations but record rainfalls in the second quarter impacted mine production culminating in the declaration of force majeure. During the first half Sebuku produced 1.5 million tonnes of coal with total 2007 production expected to be in the range of 3.4 to 3.6 million tonnes.

Production at the Mt Muro gold mine in Indonesia is expected to increase as the transition to the Tasat pit is completed. The immediate focus is to increase production and achieve cost stability.

In the medium term Straits is seeking to increase the reserve and resource base at Mt Muro and establish a stable operating platform targeting production of 80,000 ounces of gold equivalent at less than US$400 per ounce, to generate reliable cash flows.