Ann: Chairman's Address to Shareholders , page-2

Copy of the explanation (3 paragraphs)


Despite this exploration success, the last 18 months has seen continued volatility in Karoon’s shareprice
performance.
This volatility can be attributed to a combination of a muted appetite for exploration companies globally as
investors favour cash flows and yield, along with investor concerns over new Australian LNG supply. These
concerns over future Australian LNG supply are a result of capex pressures eroding the competitiveness for
Australian LNG projects and concerns over potential competing LNG supply from North America and East
Africa.
In addition to these exogenous factors we also recognise investors would like to see Karoon monetise the
value created in our projects from our exploration successes.

(but because he believes that explain all.. lets talk what we came here for)

One of the items of business at today’s meeting is the adoption of the Remuneration Report for the year
ended 30 June, 2013. From the proxies lodged prior to the meeting, it appears likely that the Company will not
receive the required voting support for the adoption of the Report.