update, courtesy smm website

LITIGATION UPDATE ON 12 NOVEMBER 2013
The trial for Civil Claim Number of 258 of 2011 started on 14 October 2013, went into a
break on 1 November 2013 and will re-start on 13 November 2013. Before the opening
statement by SMM Solomon, Axiom KB which is the sixth defendant filed three
applications (“Applications”). In this update, we summarize the results of the
Applications. The first application was withdrawn, the second application to vary the
injunction was denied and the third application was applied to the landowners
supporting both SMM Solomon and Axiom.

Applications:
1) a request for summary judgment in respect of paragraphs 5A, 6, 7A, 8, 8A, 9 and
10 of the Further Amended Further Amended Claim.
2) a request that the injunction contained in the Amended Order made 16
September 2011 be discharged to permit Axiom KB to:
a. enter into Takata and Isabel with such equipment and personnel as may be
necessary for the purpose of conducting and to conduct any reconnaissance
or prospecting, including prospecting by way of drilling and taking samples
of minerals (“Prospecting”) for the purpose of preparing a mining lease
application in respect of so much of Takata as is not covered by SMM
Solomon Limited's (“SMM Solomons”) Prospecting License No. 48/07;
b. employing and paying wages to any of the customary owners or occupants of
Takata to enable the Prospecting to be conducted and carried out;
c. to do all other things reasonably necessary to carry out the Prospecting; and
d. make a formal application for a Mining Lease in terms of the Mines and
Minerals Act in respect of so much of Takata as is not covered by SMM
Solomons' Prospecting Licence No.48/07
3) a request that the second to seventh claimants provide proof in admissible form
that they are entitled in custom to act as a representative of the community,
tribe or line they purport to represent.
Results
The Applications were resolved as follows:
1) Axiom KB withdrew the application for summary judgment.

2) Commissioner Brown declared that the injunction granted on 19 September 2011
shall continue in force until judgment or further order and the terms of Axiom
KB’s prospecting licence no 74/11 is extended to 6 January 2017 or such later date
as is two years, 267 days after final judgment (including any appeal) provided that
the extended term shall cease upon any judgment in these proceedings cancelling,
declaring void or in any other way terminating the said prospecting licence.
3) Commissioner Brown made an order in terms of Rule 3.42 of the Solomon Islands
Courts (Civil Procedure) Rules 2007 that NOT ONLY the Second to Seventh
Claimants BUT ALSO the 7th Defendants provide proof in admissible form that
they are entitled in custom to act as a representative of the community, tribe or
line they purport to represent. Commissioner Brown said this order "should not
be read to mean I accept Axiom's proposition that there is no proof apparent". .