WEC: Further update legal proceedings against Bayan Resources

(2 July 2013) -- White Energy Company Limited (WEC) refers to its announcement made on 26 July 2013 advising the market that the challenge by PT Bayan Resources Tbk (Bayan) to the grant and scope of freezing orders in favour of BCBC Singapore Pte Ltd (BCBCS) in respect Bayan?s 56% shareholding in Kangaroo Resources Limited (KRL), a publicly listed Australian company, including a challenge to the Court?s jurisdiction to make those orders including on constitutional grounds), had been dismissed.

The announcement made by KRL on 1 July 2013 titled ?Proceedings Clarification? omits to advise the market that:
? Together with Bayan, KRL a1so sought (originally in the High Court of Australia), unsuccessfully, to challenge the Court?s jurisdiction to make the freezing orders; and
? On 26 June 2013 the Supreme Court of Western Australia ordered that both Bayan and KRL pay the costs incurred by BCBCS in respect of Bayan?s and KRL?s failed jurisdictional challenge.

BCBCS intends to enforce the costs order in its favour against Bayan and KRL.

Although the secondary freezing orders against KRL have been lifted on the basis that it does not have control over Bayan?s shares in KRL, as advised on 26 June 2013 the primary freezing orders against Bayan will remain in place unless and until there is a further order made by the Court, Subject to any appeal or fresh application by Bayan to challenge the freezing orders, the Company expects that the freezing orders against Bayan will remain in place until after the conclusion of the proceedings against Bayan in the High Court of the Republic of Singapore.

KRL states in its announcement that it ?has liberty to make an application to the Court to ask for an inquiry as to damages that it has sustained by reason of the freezing orders being granted on 5 April 2012?. KRL has not yet made any such application to the Court and has not made any demand against BCBCS or otherwise notified the Company of any damage which it claims to have suffered by reason of the freezing orders being granted. In this regard, BCBCS notes that the freezing orders restraining or restricting Bayan from dealing with its shareholding in KRL remain in place.

BCBCS therefore considers that any such application by KRL would be misconceived. (ends)