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Agreements Signed for Sumatra Copper & Gold and Newcrest Mining

Further to the joint announcement dated 27 July 2010 of the signing of a non-binding Heads of Agreement, Sumatra Copper & Gold plc (‘Sumatra’) is pleased to announce that it has signed definitive Agreements involving an equity investment by Newcrest Mining Limited (‘Newcrest’) in Sumatra, an earn-in by Newcrest of 70% in one of Sumatra’s projects and an option to acquire a 25% interest in another. The Agreements involve Newcrest: 1. Subscribing for a 7.1% equity interest in Sumatra for A$2.5 million comprising 10 million shares at A$0.25 per share with 10 million attaching options, each exercisable to acquire one share for A$0.38 over an 18 month period. If fully exercised, Newcrest's interest in Sumatra would increase to 13.2%. 2. Having the right to earning a 70% interest in Sumatra’s Tandai Project by spending US$12 million over 5 years, with a minimum commitment of US$1.75 million over the first 18 months. 3. Providing a down-payment of US$500,000 for an option to acquire a 25% interest in Sumatra’s Tembang Project for US$10 million, exercisable at any time until 31 March 2011. The share subscription will take place by close of business on 19 August 2010. Sumatra has agreed to dedicate US$2 million of the proceeds to the further exploration of the Tembang project and to this end Sumatra is commissioning immediately a further 10,000 metres of drilling to further test the high grade shoots at depth delineated by the 5,000 metre drilling program recently concluded. Under the terms of the subscription agreement Newcrest has non-dilutionary rights to participate in any future Sumatra capital raisings in order to maintain its percentage holding in Sumatra. The Tandai project earn-in will initially involve Newcrest investing US$1.75 million in new shares in PT Bengkulu Utara Gold (‘PT BUG’) (the local PMA company allowing foreign shareholding holding the Tandai project exploration licence (‘IUP’) to give Newcrest a 70% stake. Newcrest may make further equity investments up to a total of US$12 million maintaining the 70:30 ownership ratio. If Newcrest elects not to complete the full US$12 million subscription Sumatra will have the right to buy back Newcrest’s equity in PT BUG for a nominal consideration. The restructuring of the share capital of PT BUG will require the consent of the local Regent and the Indonesia Investment Co-ordinating Board (‘BKPM’). For a consideration of US$500,000, payable by close of business on 19 August 2010, Sumatra has granted Newcrest an option exercisable before 31 March 2011 to acquire a 25% interest in PT Dwinad Sejhatera (‘Dwinad’), the local Indonesian company that holds the IUP covering the Tembang Project. The amount payable by Newcrest if it exercises its option is US$9.5 million of which US$4.5 million will be payable to Sumatra for sale of shares and US$5 million invested in Dwinad’s equity which will cover Sumatra’s 75% share of future capital calls up to US$5 million. The first step of re-registering Dwinad as a PMA company and the restructuring of its equity to give Sumatra a 100% interest per the restructuring agreed with its current equity owner, Sumatra’s Indonesian partner Mr Adi Sjoekri, on 16 July 2010 will require both the Regent’s and the BKPM’s approval; as will the subsequent restructuring required if Newcrest exercises its option. Tandai and Tembang are both gold and silver exploration projects centred on epithermal gold systems in large exploration and mining licences in central/south-west Sumatra. Tembang is a relatively advanced project with a JORC compliant Mineral Resource comprising 1.64 million ounces of gold and 19.8 million ounces of silver. The funding from the share placement will enable further testing for high grade gold ore shoots at depth. The funding from the earn-in agreement for Tandai will enable the level of exploration activity in this highly prospective tenement (from within which some 1.5 million ounces of gold were previously mined by underground methods) to be significantly expanded and accelerated. Sumatra Chairman, Warwick Morris comments “ The signing of the definitive agreements with Newcrest within the short time frame we set ourselves to complete them means that we can now up the tempo of the exploration efforts in two of our six tenements in Sumatra, with Newcrest as a shareholder and partner. I am sure this will prove to be a very fruitful association for both parties.”