White Energy: Update on KSC joint venture

(10 April 2012)--White Energy Company has previously advised the market of the proceedings commenced by certain of its subsidiaries, including BCBC Singapore Pte Ltd (?BCBCS?), in the High Court of the Republic of Singapore against PT Bayan Resources Tbk (?Bayan?).

The proceedings include a claim by BCBCS against Bayan for damages arising from Bayan?s breaches of the Joint Venture Deed between the KSC shareholders and Bayan?s wrongful repudiation of the Joint Venture Deed.

After the close of business on 5 April 2012 the Supreme Court of Western Australia, following an application by BCBCS, limited freezing orders in respect of Bayan?s shareholding in Kangaroo Resources Limited (?Kangaroo?), a publicly listed Australian company. Bayan holds around 56% of the shares in Kangaroo.

The orders made by the Supreme Court of Western Australia, amongst other things:
? prohibit Bayan from encumbering its shares in Kangaroo
? prohibit Bayan from transferring its shares in Kangaroo to a related party
? prohibit Bayan from disposing of its shares in Kangaroo to any entity, or diminishing the value of those shares, without first giving BCBCS 7 clear business days notice
? prohibit Kangaroo from registering any transfer of shares from Bayan to a related entity
? prohibit Kangaroo from registering any transfer of shares from Bayan to any other entity or disposing of assets of (Kangaroo with a value of $5 million, without first giving BCBCS 7 clear business days notice.

The orders will remain in place up to and including 18 April 2012 when the Western Australian proceedings are listed for a further hearing. BCBCS will submit at that hearing that the orders should be further extended.

In her reasons for granting the freezing orders sought by BCBCS, Justice Pritchard found that, amongst other things, BCBCS had established that it had a good arguable case in respect of its claims against Bayan for breach of the Joint Venture Deed and to recover damages in respect of at least its lost investment in the KSC Joint Venture.

BCBCS is required to provide a $2 million security bond to the Supreme Court of Western Australia by 12 April 2012, in support of the orders made.(ends)