Singapore - 4 December 2008, the Board of Straits Asia would like to announce that its major shareholder, Straits Resources Limited (“Straits Resources”), which owns 514.7 million shares of Straits Asia (approximately 47% of the issued shares), has informed the Company that it intends to conduct a strategic review in relation to its shareholding.

This strategic review has been prompted by the receipt of unsolicited approaches from several parties in relation to the acquisition of Straits Resources’ ownership in the Company. Straits Resources has also noted the sustained period during which the value of its interest in Straits Asia and its other assets have not been appropriately reflected in the market capitalization of Straits Resources on the Australian Securities Exchange.

Having regard to the size and strategic nature of Straits Resources’ shareholding, Straits Asia and Straits Resources have agreed that Straits Asia will be fully engaged in the strategic review with the expectation that this will best serve the interests of all Straits Asia shareholders.

There is no assurance that the completion of the strategic review will result in a specific transaction or proposal. Straits Asia and Straits Resources will keep shareholders informed of all material developments during this period and there is no need for shareholders to take any action in relation to this announcement at this point in time.

Macquarie Capital Advisers and Standard Chartered Bank have been appointed to advise the Company.

In closing, the Board of Straits Asia notes that following the recently successful refinancing of debt facilities the Company’s financial position remains sound. Further, the Company’s coal producing operations are performing to plan and the Company continues to benefit from its coal offtake agreements which are generally set at favourable prices with premium customers.