Satimola ASX Email Thread re KPC's Announcements to the market dated 9 & 10 March 2015

Satimola wishes to keep the market informed, whenever legally permissible, in its correspondence with the ASX with regard to Agreements with KPC.

Below is a copy of the latest email thread in relation to KPC’s Announcements posted on the 9 and 10 March 2015 in regard to the Satimola Loans and the Transaction to Acquire Satimola Limited.

The latter agreements have now become voided due to the numerous breaches of contract on the part of KPC.

Re: Kazakhstan Potash Corp. Limited - ASX Announcement posted 9 March 2015

Gordon L TOLL <[email protected]>
Kobe Zheng Li [email protected]
Ivanova Oksana

Dear Kobe;

Thank you for your e-mail.

There is no dispute whatsoever about the terms of the proposed transaction and this would be clear from a reading of the Sale and Purchase Agreement (SPA). I will check as to whether we can provide this document if necessary. Nor is there anything to dispute about the loan agreement between Satimola subsidiary Satbor and KPC subsidiary Batys Kali.

This latest release from KPC, in my opinion, is a further abuse of the continuous disclosure process.

All that KPC needed to do to complete the deal was put US$145 million into a special escrow set up in Sydney by 31/12/2014 as per the terms of the SPA.

The issue is not the terms of the deal - the terms are set out in black and white in the SPA and other documents. The reality is that KPC have failed to raise the necessary funds to close the deal and have no likelihood of doing so. KPC simply continues to obfuscate and mislead on this subject. Batys Kali by their own admission do not have any funds with which to complete the loan agreement referenced above. This lack of funds has been confirmed to us by the managing director of Batys Kali.

KPC blaming their inability to complete the SPA or the above referenced loan agreement on “the multi-jurisdictional nature of the transaction” is not the reality.

Furthermore, in conclusion, Satimola is not prepared to accept any “new deal" proposed by KPC.

Cheers, Gordon Toll


On 12 Mar 2015, at 12:13 am, Kobe Zheng Li wrote:

Dear Gordon,

Thank you for the further information provided. KPC released a further announcement on Tuesday 10 March, which can be accessed via the below link:
http://www.asx.com.au/asx/research/companyInfo.do?by=asxCode&asxCode=KPC
Kind Regards,
Kobe

From: Gordon L TOLL
Sent: Tuesday, 10 March 2015 3:52 AM
To: Kobe Zheng Li
Cc: Oksana Ivanova
Subject: Kazakhstan Potash Corp. Limited - ASX Announcement posted 9 March 2015
Dear Kobe;
Unfortunately I feel compelled to bother you again concerning Kazakhstan Potash Corp. Limited.

Please find attached a letter addressed to yourself on the matter of their announcement to the exchange of 9 March.

Yours faithfully,
Gordon Toll,
Executive Chairman, Satimola Limited