Replies to post #714 on Borneo Resource Investments Ltd (BRNE)

[CharlesNet]

There is no contradiction in filings. BRNE is a developing company with no current revenues (as you state). The CEO says that the company will have Revenue from Gold and Revenue from Coal and I believe him. My bet is that they will start revenue in the current (2nd Qtr) and that the stock price will rebound accordingly.

Long and Strong Borneo Resource Investments, LTD

[Cassandra]

Most of the claims (including all of the financial claims) made in the Company Overview from December 2011 are contradicted in the final BRNE Form 10 as well as the 10-K, both of which were filed with the SEC.

In those filings, as well as in multiple written responses to the SEC, Borneo Resource Investments, Inc. discloses that it owns only one IUP -- an 80% interest in the PT Chaya Meratus concession for 665 hectares and that all other concessions mentioned are immaterial as they are the result of non-binding MOUs or LOIs which may never be actualized. The 80% interest in Meratus was acquired from BRNE COO Carlo Muaja before the reverse merger and has no asset value.

BRNE also discloses that it has no plans to explore the Meratus concession and no funds to act on any of the MOUs and LOIs for the other concessions. The exploration-only Meratus concession expires in three months.

In the Forester Research Report commissioned by Borneo's IR firm in February 2012, Borneo disclosed that a walk-through inspection of 22% of the Meratus concession revealed no coal present and made no estimate of coal reserves for that concession.

Borneo does NOT own the Integra concession, so even if it had coal, BRNE has no ownership of it.

This overview is included in the iBox and has been published on sites such as seekingalpha.com. No link to the information has ever been provided. It appears to have been developed as part of the offering materials for the $1/share private placement.

Everything in red below is contradicted by the SEC filings and/or the Forester Research Report. I have made specific posts with links and page numbers regarding each of these issues. For verification, review my past posts on this forum.

IMO, BRNE exists only for the enrichment of the insiders and its extremely illiquid stock, when it manages to trade, is massively overpriced giving a company with negative net worth a market capitalization of over $35 million. BEWARE!!!

Trading symbol: BRNE (OTC)
Borneo Resource Investments Ltd.
19125 North Creek Parkway
Bothell, WA 98011
Phone .[phone]
Fax .[phone]
Email: [e-mail]
Borneo Resource Investments (BRNE.PK)

Overview December 2011

Borneo Resource Investments is a US publicly-traded resource project generator, which through and with its wholly-owned subsidiary, Interich International, controls resource concessions and licenses indicated to contain substantial reserves of thermal (steaming) coal. The concessions are located in Kalimantan province, on the island of Borneo, Republic of Indonesia.

“High-Quality Steaming Coal in Indonesia”

Market Opportunity

Indonesia has just had its credit rating raised to “investment grade” by Fitch after 14 years. This opens up the country to higher levels of Foreign Direct Investment (FDI), most of which will inevitably flow into natural resources.

The Directorate of Coal of the Indonesian Ministry of Energy and Mineral Resources has estimated that the total deposits of coal in the Kalimantan province exceed 21.1 billion metric tons. The quality of coal in the region is generally excellent, with a high calorific (heating) value and relatively low ash and sulfur content. The coal is suitable for use as the key component of the power generation industry in India and China, where governments are actively looking to diversify away from the use of lower quality, highly pollutive coal.

Indonesia's geographic location makes it ideally suited to provide supply into two of the world's largest coal consuming economies.

· Both India and China have targeted significant expansion of their power networks with thermal coal fired power stations. It is estimated that India alone will need to construct over two hundred and fifty, 100-150 MW power stations in the next 3 years to meet projected energy demands;

· The Indian and Chinese Governments have been attempting to build reserves of thermal coal to meet demand and secure long term supply contracts to even out price fluctuations. This strategy has resulted in steadily increasing prices for high quality coal to around US$100-125 per metric ton;

· Global investment in energy technologies has expanded by 60% to over US$92 Billion.

The Company targets concessions for which at least a preliminary reserve estimate has been completed.

Following acquisition of a concession, the Company will commission accredited mining engineering reports and submit to appropriate industry bodies (such as JORC in Australia) for review and confirmation of the geology to the level of internationally-recognized standards. This will provide stakeholders and customers with the assurances they need to properly evaluate the company and its assets/concessions.

Competitive Advantage

Kalimantan province, situated in the island of Borneo, Republic of Indonesia is home to one of the richest deposits of thermal coal in the world.

Borneo Resources seeks to create value for its shareholders by identifying discoveries that it will JV or sell to major mining corporations. The Company has adopted a business model that minimizes this financial risk and maximizes the chance of monetizing an ore body.

The Indonesian government has, for many years, been awarding coal mining exploration and licenses to local indigenous groups. The Company has strong connections to this group, including key executive appointments, thereby creating preferential access to these concession opportunities.

Assets

Since its inception, the Company has acquired two excellent concesions. The first is an 80% interest in PT Chaya Meratus Primecoal (“Meratus”), an Indonesian company holding exclusive exploration and development rights for up to 6,000 hectares in the Tanjung Area Basin of south east Kalimantan province.

The second is an exploration and production license covering 1,300 hectares in the Kalimantan province through an agreement with the concession holder, PT Integra Prime Coal (“Integra”).

The estimated present value of Borneo’s initial coal reserves are approximately US$1.2 - 1.4 billion applying a conservative pricing structure of US$100 per metric ton on the Company's estimated current level of reserves of 12 14 million metric tons (- currenlty non-JORC compliant).

The Company is currently negotiating to acquire additional steaming coal concessions of 98,000 hectares. If successful, the Company will be one of the largest concession owners in the Kalimantan province, making it a prime target for potential joint ventures (JV) or acquisition.

In addition to its coal reserves, management has established a coal trading operation which will aggregate smaller volumes of coal produced by regional mines for sale to strategic international buyers in India and China. The first trading contract for a 120,000 metric ton shipment has been secured and is expected to close before the end of Q1 2012.

Strategy for Growth

The Company’s operational strategy is predicated on the further acquisition of thermal coal deposits in the Kalimantan province, with the goal of building one of the largest collections of thermal coal concessions in the region. To that end, the Company is currently reviewing offers on a number of additional concessions with
detailed mining studies and full exploration, production and export licenses.

By adopting the project generator business model, Borneo Resources leverages its ability to generate potential projects, while partnering with companies better positioned and able to raise the capital required to develop world-class thermal coal deposits. In financial terms, this leverage significantly multiplies each dollar spent by Borneo Resources.

Borneo Resources itself is required to raise relatively small amounts of capital through equity financing, thus minimizing shareholder dilution. This capital is used to fund exploration, acquisition of mineral rights and marketing. Once the geological potential has been demonstrated and mineral rights are secured, Borneo Resources finds business partners that will invest in the project through earn-in joint venture agreements and non-recourse financing.

Public Company Stats
Ticker: BRNE
SIC Code: 1220
State of Incorporation: Nevada
Fiscal Year End: 12/31
Price (12/16/2011): $3.00
52-wk High/Low: $0.11/$5.00
Shares Outstanding: 70,525,205
Shares Auth. (Preferred): 100 million
Shares Auth. (Common): 400 million
Float: ~7.1 million
Market Capitalization: ~$210 million

Investor Relations contact
Mark Moline
Cinapsys, Inc.
Phone: [phone]
Fax: [phone]
www.cinapsys.com

Management

Nils Ollquist, Chairman/CEO

Mr. Ollquist has over 30 years of international banking and corporate finance experience, including several years as a specialist project and resource finance manager with a major European bank. He has extensive experience in coal and iron ore financing in his native Australia. He began his career in the Australian Treasury where he was involved in International Capital Markets issues and infrastructure financing. During this time he also served as Senior Executive Assistant to the Secretary to the Treasury, Sir Frederick Wheeler.

Mr. Ollquist has worked for a major resources bank in Amsterdam, and in corporate finance in New York, Los Angeles, Hong Kong and Sydney. He was an early investor in China, founding Orient Packaging Holdings in Wuhan, China in 1997, subsequently listed in the US and ultimately sold to a Canadian-listed forest products group. Mr. Ollquist has been doing business in Indonesia since 1993.

R. Scott Chaykin, CFO

Mr. Chaykin is a US CPA with over 30 years of hands-on experience in financial and administrative management, corporate structuring and compliance, including strategic planning, operations, financial modeling, sales and marketing.

He has expertise in regulatory affairs, risk management, human resources, management accounting, and public
company reporting.

Carlo Muaja, COO and Director

Mr. Muaja is an Indonesian national based in Hong Kong. He was born in East Kalimantan, Indonesia and was educated in Asia and the US. He has a mining industry and accounting background.

Mr. Muaja has a strong network of relationships, both within government and the private sector in Indonesia, and is responsible for development and execution of the Company’s concession acquisition strategy.

Disclaimer

Statements made in this Report which are not purely historical are forward-looking statements with respect to the goals, plan objectives, intentions, expectations, financial condition, results of operations, future performance and business of Borneo Resource Investments, Ltd. including, without limitation, (i) their ability to successfully implement the business plan and their ability to retain concessions, relationships with contractors, vendors, individual representatives and/or government agencies; and (ii) statements preceded by, followed by or that include the words "may", "would", "could", "should", "expects", "projects", "anticipates", "believes", "estimates", "plans", "intends", "targets" or similar expressions. This report was produced from information provided by the Company or otherwise available in publicly available resources. The information herein is believed to be reliable but is not warranted as such. You should perform your own due diligence to verify any material information presented herein, and review the Company’s public filings. This document is not a recommendation to buy or sell any securities. 29 Dec 2011, 04:38 PM