Herald Resources - Chairman`s Address to Shareholders Fri, 29 May 2009 16:02:00 +1000       9 months, 3 weeks ago

29 May 2009 Companies Announcement Office Australian Securities Exchange 20 Bridge Street SYDNEY NSW 2000 Via ASX Online RE: CHAIRMAN’S ADDRESS – ANNUAL GENERAL MEETING The following address is to be given by our Chairman, Mr Kenneth Farrell, at the Company’s Annual General Meeting today. Yours faithfully EVAN BALL Chief Executive Officer CHAIRMAN’S ADDRESS The AGM is being held at this time as a result of Herald Resources having obtained ASIC approval to permit Herald Resources to change its financial year end date from 30 June to 31 December, so that it’s financial year end date is synchronised with that of its ultimate parent company, PT Bumi Resources. Since the 2008 AGM there has been a number of changes to the board.

The resignation of Mr Michael Wright occurred shortly after year end as a result of personal health issues. We are fortunate to be able to have a new non executive director in Mr Andrew Wilson. Mr Wilson commenced his career as a lawyer with Allens Arthur Robinson before becoming the Legal Manager and Company Secretary at BHP Engineering Group, where he then took various commercial and risk management roles.

From 2000 until 2007 he was the President Director PT BHP Billiton Indonesia. Mr Wilson has degrees in Commerce, Law and has been a member of the Law Society of NSW since 1986. He is a Fellow of the Australian Institute of Company Directors.

Mr Wilson’s appointment will bring significant operational and Indonesian country specific experience to the Company and I am confident he will work hard with our existing Directors to assist in maximising the value of our assets going forward. Over the past six months forestry approvals continued to command the time and resources from the Directors and management of the Company. The legislation required to allow underground mining in a protected forest we believe is before the President of Indonesia for his signature.

However we expect that it is unlikely to be signed until after the presidential elections in July this year. On the 16th of December the Indonesian parliament passed Indonesia’s new Law on Mineral and Coal Mining. This law, which has been under deliberation for well in excess of three years, together with the 2007 investment law and the 2007 and 2008 tax laws represents another major regulatory development in Indonesia’s investment landscape.

As had been suspected the well regarded Contract of Work system ....