Torrens Update: Leave to appeal and Minister'sdecision on ERD...

Torrens Update: Leave to appeal and Minister's
decision on ERD Court determination

Further to the announcement of 17 January 2011, Argonaut Resources NL (ASX:
ARE) announces that the Minister for Mineral Resources Development in SouthAustralia has advised that he will not overrule the determination that operations may not be conducted on EL4296 made by the Environment, Resource and Development(ERD) Court on 14 January 2011

In making this decision, the Minister has advised that the complexity of the issues involved in the case meant that an administrative decision was not the best interests
of the State or the industry generally.

The Minister further advised that the best course of action is for the South Australian Attorney-General, as a respondent to the appeal in the Supreme Court, to make submissions on behalf of the State generally in support of the Torrens Joint Venture.

The Minister will also provide the necessary assistance for the parties to negotiate an agreement that, with the authorisation of the ERD Court, can displace the earlier
determination by the Court as provided for under Section 63X of the Mining Act 1971(SA).

Supreme Court Appeal

Parties to the Torrens Joint Venture are continuing with the appeal to the Supreme Court of South Australia.

On 8 March 2011, the Full Court of the Supreme Court of South Australia grantedleave to appeal against the whole of the ERD Court decision of 14 January 2011.

The judgment of the Full Court affirmed that no permission was required for mixedquestions of fact and law which means that the bulk of the grounds of appeal put forward may be argued by Straits Exploration (Australia) Pty. Ltd and Kelaray Pty. Ltd. (?the Appellants?).

The Full Court has also accepted the Appellants proposed challenge of the ERD Court findings that were critical of the Appellants conduct may be challenged on both the factual ground, as well as on the question of statutory construction.

The Full Court only refused to grant leave on four of the factual grounds. The loss