Starting to hot up....... RECORD OF OUTCOME Outcome Type: Order...

Starting to hot up.......

RECORD OF OUTCOME
Outcome Type: Order
Court of Origin: Supreme Court of South Australia
Action Number: SCCIV-14-1480
Between: ALLIANCE CRATON EXPLORER PTY LTD, Plaintiff
AND QUASAR RESOURCES PTY LTD, Defendant
08.05.2015 Order
1. The Court makes orders in terms of the minutes of order handed up by Mr Thomas as amended, dated and initialled by me.
2. The Court makes orders in terms of the minutes of order handed up by Mr Hoffmann QC as
amended, dated and initialled by me.
3. Permission is granted for subpoenas to be issued to Mr Ian Gandel, Gandel Metals Pty Ltd and Abbottsleigh Pty Ltd.
4. The matter is adjourned to Wednesday 13 May 2015 at 10:15 a.m.
APPLICATION FOR FURTHER BETTER DISCLOSURE (FDN 44)
By consent the Court orders that:
1. The defendant has permission to file and serve by close of business on Monday 11 May 2015 a Rejoinder to the Third Reply incorporating the terms set out in the column headed ‘Quasar’s position’ in the document initialled by me today, subject to the addition of the words ‘throughout the period’ before the word ‘between’ in response to paragraph 6(c)(iii).
2. The defendant is, by close of business on Wednesday 13 May 2015 to provide disclosure and permit inspection of the following classes of documents, insofar as they exist:
(a) Reports which record, in summary form, with respect to drums of uranium
concentrates allocated to production from Four Mile:
(i) the weight and the estimated uranium content of such drums.
(ii) the results of the analysis of the contents of such drums for the purpose
of assessing and monitoring compliance with quality specifications.
(b) Documents recording or evidencing any arrangement between Quasar and Heathgate
with respect to:
(i) the establishment or operatino of any sub-account with Cameco
Corporation held on Quasar’s behalf by Heathgate;
(ii) the shipping of Four Mile uranium concentrates, including the Shipped Uranium, to Cameco Corporation and its weighing, acceptance and storage.
(c)Documents relating to the negotiation and internal consideration by Quasar of the possible sale of Four Mile uranium concentrates to the potential purchaser referred to in D3.010 and D3.016 including in relation to logistics for delivery.
(d) Documents recording or evidencing further communications, and internal
consideration by Quasar, of the possible sale of uranium concentrates to the potential
purchaser referred to in D3.041, including with respect to the proposed price.
3. Costs reserved.
APPLICATION FOR PRODUCTION OF UNREDACTED DOCUMENTS (FDN 46)
4. The plaintiff will provide unredacted copies of the documents listed in Annexure A to the application to Mr Anthony Lethlean, on the terms of the confidentiality undertaking previously signed by him.
5. The application is otherwise adjourned.
6. Costs reserved.

SUBPOENA TO HEATHGATE
7. The plaintiff has permission to file and serve by close of business on Monday 11 May 2015 a subpoena addressed to Heathgate Resources Pty Ltd including a schedule of documents in the following terms, such subpoena to be returnable on 15 May 2015:
‘Reports or schedules which record, in summary form, the following information with respect to uranium concentrates produced at Beverley which have been shipped to a converter facility since 1 July 2013:
(a) the converter adjustment by weight to the lodged quantity in respect of each drum
or lot submitted;
(b) the converter’s certificate of analysis in respect of each drum or lot submitted;
(c) rejections by a converter (if any);
(d) the imposition of surcharges by a converter;
(e) any shortfall where uranium concentrates have been sold by book transfer prior to
acceptance by a conveter based on Heathgate’s declared quantities;
(f) the time to ship uranium concentrates produced at Beverley to a converter facility;
(g) the time taken between the arrival at a converter facility of a shipment of
uranium concentrates produced at Beverley and the acceptance or rejection of such concentrates by the converter.’
1. That the plaintiff give further and better disclosure on or before 4:30 p.m. on 13 May 2015 of the following categories of documents to the extent they exist:
1.1 documents evidencing decisions by Alliance Craton Explorer Pty Ltd (Alliance) and
Alliance Resources Limited (Alliance Resources) to commence or suspend the sale of
Alliance’s interest in the Four Mile Project and Joint Venture with Quasar Resources
Pty Ltd (Quasar) (’the sale process’) limited to the extent that those decisions were
based on or informed by the financial position of Alliance and / or its projected
obligations to fund cash in respect of its participation in the Joint Venture;
1.2 documents which tend to prove or disprove the existence of any actual or
apprehended uncertainty for potential funders created by the sale process;
1.3 documents created in connection with the sale process which record or refer to
Alliance or Alliance Resources Limited (Alliance Resources)’s actual and forecast
cash flows and financial position;
1.4 emails or other communications relating to or explaining the preparation of, and
assumptions used in, the spreadsheets disclosed as ACE.270, ACE.276, ACE.282,
ACE.283, ACE.284, ACE.285, ACE.289, and ACE.290, together with documents
identifying when and to whom these cash flows were provided and recording any
comments receieved in respect of these cash flows;
1.5 documents created in the period 1 May 2014 to 18 November 2014 constituting or
recordnig any consideration, analysis or advice concerning the financial position,
viability, solvency and / or likely funding requirements of Alliance, including
documents constituting or recording communications with:
(a) the company’s auditors;
(b) Deloitte Corporate Finance; and
(c) Mr John Fast and / or Dragoman Proprietary Ltd,
concerning any of these matters;
1.6 documents created between 1 May 2014 and 18 November 2014 recording or
evidencing Alliance’s knowledge or belief in respect of the uranium market and
current and forecast uranium prices;
1.7 documents created in the period 1 May 2014 to 18 November 2014 constituting or
recording any consideration, analysis or advice concerning Alliance’s ability and /
or preparedness to contribute to the 2015 Program & Budget;
1.8 handwritten notes of meetings of the board of directors of Alliance on 22 August
2014 and 24 October 2014 to the extent that they are directly relevant.
2. Paragraph 2.11 of the Defendant’s Interlocutory application dated 6 May 2015 (FDN 51) is adjourned to Wednesday 13 May 2015 at 10:15 a.m.
3. Costs reserved.
That this matter be adjourned to Hearing on 13.05.2015 at 10:15am.
For Plaintiff 1 : Mr I Thomas
For Defendant 1 : Mr M Hoffmann QC

The Honourable Justice Stanley
08.05.2015 3:32pm - 3:52pm