Ann: WIM 150 Judgement Appeal , page-9

Hi Sasa,

If I am allowed to say it, none of what you wrote in regard to the Court Appeal is actually correct, and perhaps a little misleading.

Because, the appeal is only to try and reverse Justice Corboy's decision that the Agreement is not assignable.

Below herein, there are some excerpts that my explain the real position that we are currently in.


"Court disallows sale of Australian Zircon farm-in agreement
Published 10:06 AM, 8 Aug 2011


Austpac Resources NL in a shareholder update advised on August 4 Justice Corboy of the Supreme Court of Western Australia ruled that the farm in agreement with Australian Zircon NL was not assignable and that therefore the Sale Agreement with Astron Ltd was ended.
Austpac Resources NL currently holds 100% of EL4521. Under the farm in agreement Australian Zircon has the right to earn an 80% interest in the WIM 150 project by completing a bankable feasibility study.

Austpac Resources (ASX: APG) has provided an update on its farm-in agreement with Australian Zircon (ASX: AZC).

The agreement has been ruled not assignable by the Supreme Court of Western Australia, ending the sale agreement with Astron Limited. Austpac currently holds 100% of EL4521.


See also note of 4 August below -

Astron has lodged an appeal 07/09/2011.

On 4 August 2011, Justice Corboy of the Supreme Court of Western Australia ruled that the Farm-In Agreement with Australian Zircon N.L. was not assignable, and that therefore the Sale Agreement with Astron Limited was ended - Austpac Resources NL currently holds 100% of EL4521. Under the Farm-In Agreement Australian Zircon has the right to earn an 80% interest in the WIM 150 project by completing a bankable feasibility study 05/08/2011 a joint venture has been established with Orient Zirconic Resources and AZC has a 35% equity in the joint venture entity 29/06/2011 company releases an announcement that of itself makes little sense - there are constant references to an earlier announcement on 10 November - surely ASX could glance over company announcements to ensure they are understandable to shareholders 29/03/2011 the Foreign Investment Review Board has apparently said the assignment to a Joint Venture Company as set out in the note of 10/11/2010 below, will be "unobjectionable" - AZC continues to work on this transaction."

End of quote..

So Sasa, as you will notice from all of the above, the Agreement reached between APG and AZT (Zircon) was not assignable and therefore it could not have been transferred to a third party namely Astron Limited.
As such, the only reason that an appeal has been lodged, is to try and get that ruling from Justice Corboy reversed. If the appeal is successful than Zircon will be able to proceed with the sale of WIM 150. If not, nothing will change.

Regards.