Ann: Litigation Proceedings Commenced by Sandfire Resources, page-12

Morning Guys,

Rather unexpected, although I do recall some previous CR's where SFR was not included. Even back then there was a concern that SFR would gain a controlling stake and we viewed the ADT management team as shrewd.

Unless there is some underlying advantage for SFR in taking this course of action it would otherwise seem very confrontational vs. the immediate financial gain. Even if SFR were awarded the 4.1m shares that they think they have erroneously missed out on it would only equate to A$8.2m ... and that is if these were awarded at NIL cost (they would likely have to pay the subscription cost if they won a court case).

I think it is safe to say that the SFR / ADT relationship is beyond acrimonious and SFR realise that any TO process would be highly competitive and rebuffed vigorously by ADT. That is good. As a shareholder of MOD who lost a LOT of money due to an opportunistic TO by SFR at a low ebb in the cycle I am glad that the ADT management team are much more astute to lowball TO risks.

Cheers
John