directions hearing, page-218

From the Quasar rejected offer announcement of 23 Feb 2015.

"The Board, in conjunction with its advisers, has reviewed Quasar's offer and has now rejected it. In discussions between Deloitte and Quasar, Quasar indicated that it is not prepared to increase its offer to a level the Board would consider recommending to Alliance shareholders."

The wording above suggests Deloitte and Quasar have thrown numbers around that are higher than the last offer price however those numbers were considered unsuitable to recommend to the shareholders, nevertheless the fact remains that AGS's intention is still to sell whether it be through a settlement to this action or the continuation of a process they started before the action was commenced.

For all those who believe we are not sellers, just look at the facts.

18 November 2014

" The Board of Directors of Alliance Resources Limited ("Alliance") has resolved to suspend the process for the sale of its 25% interest in the Four Mile Uranium Project until the recently commenced proceedings in the Supreme Court of South Australia have been finalised"

We are sellers until the board says that they have changed tack and intend to pursue the JV.

Until this time the only buyers are Quasar IMO. Itochu were only interested if AGS were able to win 100% of their rights back through the M&D conduct action. They didn't win and Itochu are gone, goodbye. If we are sellers we are selling to Quasar and no amount of dirty laundry is going to overcome the power of having to pay over real money.

If dreaming got you into trouble in the past, don't let it happen again. Quasar might up the offer by 40%- 50% if we are lucky, no more IMO. The rest of these discussions are best left to the day dreamers, the deluded and the desperate, unless of course the board changes its mind, takes the bull by the horns and runs with the project. Then and only then can the dreaming start again in earnest.

$100-120 million settlement with a part capital return to shareholders is the best outcome in my opinion.

"All's fair in love and war" as they say.

Eshmun