Sumatra Copper & Gold plc  is pleased to announce that it has achieved the most significant milestone to date at its 100%-owned Tembang Gold-Silver Project in southern Sumatra, Indonesia, following the award of the final “Borrow and Use” permit or “Pinjam Pakai” for the Project – clearing the way for construction to proceed.   The award of the Final Forestry Permit marks the completion of a rapid and highly successful approvals and permitting process and puts Sumatra on track to join the ranks of leading Indonesian gold producers next year. Under new Mining Laws in Indonesia, holders of Mining Business Permits (or IUP’s) in forested areas must obtain an “Izin Pinjam Pakai” (“Borrow and Use” permit) from the Forestry Department before proceeding with any development of a mining project.

The award of this final permit represents one of the final remaining conditions precedent (CP’s) required to complete the US$35 million senior project finance facility with Credit Suisse announced on 21 February 2013, clearing the way for development of the Stage 1 Tembang Project to proceed. Sumatra has progressed rapidly through the approvals process, receiving an In-principle Forestry Licence from the Minister of Forestry in December 2012, and lodging final documentation for the Pinjam Pakai in late February 2013. Sumatra’s Managing Director, Mr Julian Ford, said the Company had established an excellent working relationship with the Indonesian Forestry Department, and the completion of this final regulatory hurdle was a key milestone on the path to production.

“This is an outstanding outcome for Sumatra, with the Tembang Project moving from exploration phase to being fully permitted for development within just 15 months – a fantastic outcome for shareholders. This is testament to the skill, hard work and commitment of our environmental and permitting team, combined with the support and assistance of our Indonesian partners. “I would like to take this opportunity to thank everyone who has been involved in helping us to achieve this milestone. With all the necessary approvals now in place, and our funding package secured, we are very much looking forward to getting construction and development underway, and moving the Tembang Project into production in 2014.”