Forfeiture Action x 2 Reposted, page-3

Mistie you are not referring to pg 48 of the annual legal proceeding? dated 11 nov

18. Contingent liabilities (a) Legal proceedings have been issued against the Company by an unsecured creditor in relation to an unsecured loan amount of $160,000 including interest expense, accrued in the financial statements at 30 June 2014. Interest and costs may be incurred by FairStar in relation to this matter, but the outcome of the proceedings cannot be determined at this time.

(b) Legal proceedings have been issued against the Company by an unsecured creditor in relation to a payable amount of $315,000 accrued in the financial statements at 30 June 2014. FairStar is currently negotiating a payment arrangement with the creditor (including interest expense) and are confident this matter will be settled shortly. Subsequent to 30 June 2014, the Company has entered into a settlement deed regarding this matter. Further details are contained in Note 25 (e). The Company, as at the date of this report, is not aware of any other contingent liabilities.