Marubeni Corporation and Marubeni Coal Pty Ltd have agreed with Titan Holdings Finance Pty Limited a wholly owned subsidiary of Xstrata Coal Pty Limited both of Australia to increase Marubeni's shareholding in Resource Pacific Holdings Pty Limited also of Australia, from the current 10.24% to 22.22%.

This deal requires Marubeni to make a further investment of 13 billion in Resource Pacific, which will become Marubeni's affiliated company.

Following the Cooperation Deed executed last December by Marubeni and Titan, Marubeni has worked with Titan as an associate during its takeover bid for RP and has been granted an option to purchase RP shares upon the completion of the takeover bid.

Marubeni and Titan have been in negotiations with regard to the exercise of the call option and the new shareholders agreement since April of this year, when the takeover of RP was completed, and have now reached an agreement.

Resource Pacific has been producing high quality semi-soft coking coal from the Ravensworth Underground coal mine in the Hunter Valley, New South Wales, Australia since 2004. It expanded its annual production capacity up to 4 million ROM tons by installing a longwall in January 2007 and has been ramping up operations since then.

Through this further investment in Resource Pacific and existing sales agency for Ravensworth Underground coal, Marubeni will secure the supply source of high quality semi-soft coking coal and will have active involvement in the management of RP through its representation on the board of RP.