White Energy updates E. Kalimantan coal upgrading project

The following is an excerpt taken from White Energy Company (WEC)?s quarterly report ended 31 March 2016 released on Friday.

PT Kaltim Supacoal (KSC) ? WEC 51%

Update on Legal Dispute

Singapore Proceedings
Further to previous updates provided to shareholders, the Company wishes to advise that the first tranche of the trial in connection with the legal proceedings initiated in late 2011 by

BCBC Singapore Pty Ltd (?BCBCS?) and Binderless Coal Briquetting Company Pty Limited, indirect wholly owned subsidiaries of White Energy, against Bayan and Bayan International Pte Ltd, over matters relating to the Tabang coal upgrading plant, located at Bayan?s Tabang mine in East Kalimantan, Indonesia (the ?Suit?) was heard by the newly established Singapore International Commercial Court (?SICC?) in November 2015. The SICC has reserved its decision and the Company will advise shareholders of any further updates in this regard.

Australian Proceedings ? Freeze Order
The Company refers to its previous announcements in relation to the freezing orders made by the Supreme Court of Western Australia (?Supreme Court?) on 5 April 2012 in favour of BCBCS in respect of Bayan?s 56% shareholding in Kangaroo Resources Limited (?KRL?), a publicly listed Australian company (?freezing orders?).

The Company refers to its announcement on 24 October 2014 advising the market that Bayan had served on BCBCS a notice of Bayan?s intention to appeal to the High Court of Australia from the orders made by the Court of Appeal of Western Australia, dismissing the challenge by Bayan to the grant and scope of the freezing orders.

Bayan?s appeal was heard before the Full Court of the High Court of Australia in August 2015. On 14 October 2015, the High Court of Australia unanimously dismissed Bayan?s appeal. An order has been made that Bayan pay BCBCS? costs of the appeal. The parties have agreed a settlement amount of $330,000 in favour of WEC in respect of such costs. We have been advised that payment will be made soon. The freezing orders will remain in place unless and until there is a further order made by the Supreme Court. The Company expects that the freezing orders will remain in place until after the conclusion of the proceedings against Bayan in the SICC. (end of excerpt)