6 December 2017 ASX Limited Electronic lodgement Legal Update on...

6 December 2017

ASX Limited Electronic lodgement

Legal Update on Supreme Court Action

Comments
Xstate Resources Limited (ASX: XST) (“Xstate” or “the Company”) provides the following update in relation to its Supreme Court action against Tanzil Hidayat, Chloe Kwok Yun Qing, Hong Hung Thiam and Kevin Lim Gunawan seeking damages for the non‐payment of A$25 million in subscription funds by four investors who had signed binding, unconditional subscription agreements, such non‐payment resulting in the termination by the vendor of Xstate’s acquisition of the Los Angeles Basin assets as previously advised to the market.

The Company is pleased to announce that the Supreme Court of Western Australia has awarded summary judgment in favour of the Company against three of the four defendants (Tanzil Hidayat, Chloe Kwok Yun Qing and Hong Hung Thiam). The Court has ordered that those defendants pay the Company a total of US$33,187,960 plus interest.

The Court also ordered that the said defendants pay the Company's costs of the entire Supreme Court action and of the summary judgment application without regard to the limits imposed in the Legal Profession (Supreme Court) (Contentious Business) Determination 2016.

The Company has commenced taking legal steps to enforce the judgment against the said defendants overseas where they reside through its international lawyers Clifford Chance.

The Board of Xstate is pleased with the Court’s decision which vindicates the Company’s decision to pursue the defendants for breach of contract. As previously advised Xstate will continue its efforts to reach a satisfactory and swift resolution of its claim for damages against the three defendants.

The Company will keep the market fully informed of further developments.

For and on behalf of the Board of Xstate Resources Limited


so all costs plus interest on $33 mill... total wipe out for the sanston 3.