Bougainville Government Signs Mining Exploration and Development Deal

Also Energy, Fishing and Banking Agreements
ARAWA, Bougainville, Papua New Guinea--(Business Wire)--
The Autonomous Bougainville Government entered into an historic
agreement with Bogenvil Resources Development Corporation (AROB) Ltd
("BRDC"), granting by way of a commercial contract with BRDC the sole
right to deal with Resources Landowner Companies on Bougainville
outside the Panguna area of interest with respect to mining
exploration and development for a period of three years with an option
to extend to 5 years. To maintain its rights BRDC will pay an annual
US $5,000,000 Agreement Licence Fee to the ABG as well as undertaking
a US $35,000,000 exploration programme over the first three years.

The business relationship defined by the Agreement arises out of
the necessity to accelerate a broad based economic recovery on
Bougainville and to manage the mining exploration process in the
initial years after the Moratorium on Exploration is lifted.

BRDC is a special purposes Company registered in PNG with
shareholders from Bougainville including the ABG's investment arm as
well as foreign investor partners. BRDC is envisioned as the platform
for building out broad based important high impact projects on
Bougainville with the principle of Resource Landowner participation
being a fundamental tenant.

Apart from mining exploration, BRDC's mandate under this agreement
is to accelerate the work that it has done to date:

-- to lay the foundation for a major robust commercial fishing
operation, that can eventually be extended to include the
abundant international waters surrounding Bougainville -
Treasure Island Fisheries Ltd;

-- to provide and make application for full banking articles with
the Central Bank of PNG and to position banking branches to
deliver services to the financially disenfranchised people
over Bougainville - Bogenvil Commercial Bank ("BCB");

-- to complete a full scale feasibility study with the view to
establish a state of the art biodiesel plant to utilize the
current unused portion of the coconut crop and to sponsor the
rehabilitation of run down plantations - all with the goal of
attaining self sufficiency and sustainability in the use of
diesel in the face of rising fuel prices - Bogenvil Biodiesel
Ltd;

-- to rebuild the Manetai Limestone plant based on a
pre-engineering study recently conducted with the view to
exporting quicklime - Bogenvil Limestone (Manetai) Ltd;

-- to bring an industry partner to make application over the
Bougainville Oil & Gas Basin and to build on the data that has
been acquired and analysed to date - Bogenvil Oil & Gas Ltd;

-- to support the investigation of eco-tourism opportunities with
respect to properties and facilities and to configure the
infrastructure critical mass that is necessary to attract
tourists to what is indicated, by virtue of its history and
nature, to be a world class ecotourist destination;

-- to establish a division of BRDC that acts as a business
incubator by providing expert advice, to review and analyse
Resources Landowner and other private business proposals, and
to guide them in seeking private investment capital and
technical help - BRDC Business Development Ltd.

In order to finance stand-alone projects at this critical stage of
Bougainville's recovery, it is the case that such capital raising has
to be done off the back of mining exploration. Recognising this
reality, and becoming aware of the recent activities of uninvited and
unscreened outside companies unwittingly pitting clan against clan in
prospective mining areas, the ABG has determined to implement a
coordinated and centralized approach to mining exploration.

The need to address the above concerns and the need to provide the
support to finance a broad based economic development thrust, has
driven the current Agreement. The contract confers on BRDC the right
to enter into Exploration and Development agreements with Resources
Landowner Companies incorporating a trailblazing model for Access and
Benefits with the resource owners.

Eminent Persons Advisory Board

The ABG looks to BRDC to become a world class institution acting
within the framework of good governance, transparency and
accountability standards, and that it will introduce and educate
Bougainvilleans to private and public financial institutions in
international Capital Markets.

To oversee this transition, BRDC is committed to form an Eminent
Persons Advisory Board drawn from around the world consisting of
outstanding people experienced in international business affairs, good
governance, and having knowledge and empathy for the history of
Bougainville and an appreciation for the great promise it holds to
become a model nation in the future.

On behalf of the HON. JOSEPH KABUI - PRESIDENT, Autonomous
Bougainville Government.

Bogenvil Resources Development Corporation
Robert Atsir, Chairman
Mobile: + 675 696 5666
Office: + 675 973 9347
robatsir@online.net.pg

Copyright Business Wire 2008