Board of Commissioners and all honorable shareholders, We, the Board of Directors of PT Lion Metal Works Tbk, would like to present the Consolidated Financial Statements for the year ended 31 December 2010, which was audited by Kantor Akuntan Publik Kosasih, Nurdiyaman, Tjahjo & Rekan based on Report No. KNT&R – 0052/11 dated 11 March 2011 with unqualified opinion. The Consolidated Financial Statements were prepared in accordance with the Principle of Financial Accounting Standard (PSAK) and regulations of Capital Market Supervisory Agency (BAPEPAM) and Financial Board (LK) in accounting section. The Consolidated Financial Statements were audited by the Accountant registered with BAPEPAM and LK. The Board of Directors is responsible for preparation of the Financial Statements, including internal control system and disclosure of all information is complete and true. To conclude, we would like to express our appreciation for the confidence, support and close cooperation extended.

The Board of Directors

CHENG YONG KIM President Director

LIM TAI PONG Director

IR. H. KRISANT SOPHIAAN MSC Director

TJOE TJOE PENG / LAWER SUPENDI Director