chm/ murchison

For old posters on this site. the appeal on the above senario has now concluded and hopefully a decision will be forthcoming soon.

Both CFE and Tony Sage have significant holdings in CHM and hence the interest from the CFR perspective

Cheers

John


ASX ANNOUNCEMENT
ASX Code: MMX
18 August 2011
CHAMELEON MINING LITIGATION UPDATE
Murchison Metals Ltd (�Murchison�) advises that the Federal Court hearing of the appeals (and cross appeals) relating to the proceedings commenced by Chameleon Mining NL (�Chameleon�) against Murchison, Crosslands Resources and other parties concluded on 17 August. The Court reserved its decision.
The appeals and cross-appeals relate to the decision handed down by Justice Jacobson on 20 October 2010, which dismissed Chameleon�s claim that it was entitled to an interest in either the Jack Hills project and/or Murchison�s shares in Crosslands Resources. The effect of the orders made by Justice Jacobson (which were the subject of the appeals) was that:
� Murchison was liable to pay Chameleon a portion of the profit it received as a consequence of the investment of $277,840 in Crosslands from 24 July 2004 to October 2010. Murchison notes that it has not been paid any dividends as a consequence of its investment in Crosslands.
As an alternative, Chameleon was entitled, at its election, to equitable compensation of $277,840 from Murchison plus interest at commercial rates on a compounding basis.
� Crosslands was liable to pay Chameleon the profit obtained by it from the use of $152,750 on the same basis as Murchison. Murchison notes that the project operated at a loss over the relevant period.
As an alternative, Chameleon was entitled, at its election, to equitable compensation of $152,750 from Crosslands plus interest at commercial rates on a compounding basis.
� Murchison is not liable to Chameleon with respect to 10 million Crosslands shares held by Murchison (over which Chameleon had claimed a constructive trust) nor was Murchison liable for the profits made by another defendant in the proceedings from the sale of 10 million Murchison shares.
� There was no entitlement on the part of Chameleon to claim to any future income or profits from the Jack Hills project.
For further information, please contact:
Trevor Matthews
Chief Operating Officer
Murchison Metals Ltd
+61 8 9492 2600
John Phaceas