To: Kazakhstan Potash Corporation Limited
Level 5, 406 Collins Street, Melbourne, Victoria, 3000
Facsimile: +61 (0) 3 9670 3222
+ 852 21171168
Attention: Ms Freada Cheung (Chairman, Managing Director)
Mr. Wang Baolin (Executive Director)
Dr. Kaneko Hiroshi (Executive Director)
Mr. Marco Marcou (Executive Director)
Mr. Terrence Wong (Executive Director)
Mr. Lyu Xiaokang (Executive Director)
Mr. Edward Wen (Nonexecutive Director)
Ms Junmei Zhang (Nonexecutive Director)
Date: 16.03.2015
Subject: Termination Notice
Dear Mme Cheung,
This is to officially notify you that due to the breach of the Conditions Precedent and Subsequent of the letter agreement dated December 30, 2014 between Satimola Limited and Kazakhstan Potash Corporation Limited the Sale and Purchase Agreement dated July 02, 2014 is hereby terminated due to default of the Buyer.
Hereby Satimola Limited is also notifying you about termination of the Loan Agreement dated 22 January 2015 between Batys Kali LLP and Satbor LLP due to the failure of Batys Kali to provide the funds as per the terms of this Loan Agreement.
Pursuant to the terms of the Loan Agreement dated May 01, 2013 as amended, Loan Agreement 2 dated July 02, 2014 and Sale and Purchase Agreement dated July 02, 2014 Satimola Limited may convert the loan provided by KPCL into shares in Satimola Limited.
In the current circumstances Satimola Limited is requesting to provide the documents as per the list attached required to apply for government consents related to conversion of your loans into shares.
In addition Satimola Limited will take all further steps to compensate for any interest charges, penalties or any other damages it has incurred as a result of your breaches of the loan agreements and the sale and purchase agreement.
Satimola Limited is requesting you to notify the ASX and ASIC of the current situation otherwise we will have to do so to officially complete our relations.
Sincerely,
__________________
Gordon L. Toll
Chairman
KPC Price at posting:
10.0¢ Sentiment: None Disclosure: Not Held
