hardman sues woodside , page-2

re: hardman sues woodside - here it it... Hardman Resources Limited announces that its wholly owned subsidiary, Hardman
Chinguetti Production Pty Ltd (together Hardman), today commenced proceedings in the
Supreme Court of Western Australia with the aim of establishing Hardman’s entitlement to
cost recovery under the relevant Area B production sharing contract.
The issue involves the meaning according to law of the Joint Operating Agreement and
Farmin Agreement for Area B. It has been the subject of considerable discussion and
correspondence between Hardman and Woodside Mauritania Pty Ltd (Woodside), the
Operator of the Area B Joint Venture, since late 2003. Hardman and Woodside have not
been able to reach an agreed outcome despite both parties proposing different terms for
resolution by arbitration.
Hardman’s position is that the entitlement of all joint venture parties to recover costs should
be calculated according to the participating interest share in the Joint Venture. Woodside
asserts that it should be entitled to recover 100% of its share of the farmin costs for cost
recovery purposes.
Other Area B joint venture parties have indicated support for Hardman’s position. Hardman
also has an opinion from a Queens Counsel which supports its position.
Should the Court make the declarations sought, Hardman would receive approximately
US$18 million in additional cost recovery and reimbursement payments than would
otherwise apply under the Woodside position.
The Supreme Court proceedings will not impact upon the development of the Chinguetti field
which remains on schedule to produce first oil in the first quarter of 2006.

Hardman’s Chief Executive Officer and Managing Director, Simon Potter, commented:-
“This action by Hardman has been taken reluctantly to break a deadlock in the respective
positions of Hardman and Woodside. The parties have essentially agreed to disagree and it is
necessary to obtain an independent determination of the issues involved.
This is a one-off situation and will not impact upon the good working relationship Hardman
has enjoyed and will continue to enjoy with Woodside in several joint ventures in
Mauritania.”
SIMON POTTER
CHIEF EXECUTIVE OFFICER & MANAGING DIRECTOR
HARDMAN RESOURCES LIMITED