Equator Resources : Voluntary Suspension Update

ACN: 127 411 796

09 April 2014

EQU0C0RASXASX188D

ASX Market Announcements Markets Announcement Platform Australian Securities Exchange SYDNEY NSW 2000

Equator Resources Limited (Equator or the Company) (ASX: EQU) would like to update Shareholders on the
status of the Company's voluntary suspension.
The suspension was requested by the Company on 27 September 2013 because discussions were in progress regarding funding arrangements/capital raising initiatives but the discussions were still at a very early stage.
Since Equator updated the market on 4 February 2014 that discussions with various investment groups had been unilaterally withdrawn, the board of Equator is continuing to attend to its obligations, including assessment of the Company's solvency, going concern, valuation of assets and also monitoring the Company's liquidity risk. Presently the Company is in care and maintenance mode.
The Board is focused on restructuring the Company and implementing new plans. The first step in this process is the disposal of the Company's Liberian exploration asses and in this regard, the Company is pleased to advise that it has entered into and signed off on a binding term sheet (Tern Sheet) with the Bukon Jedeh Original Investor Group (BJO) under which Equator has made a firm commitment to proceed with the divesting of its exploration assets in Liberia Africa held in the subsidiaries of Bukon Jedeh Holdings Pty Ltd (BJH) and Bukon Jedeh Resources Pty Ltd (BJR) to BJO.
The Term Sheet transaction is subject to valuation of the BJR Licences, Equators Shares and Shareholder approval.

For the above transaction to proceed; the following condition precedents must occur:

 Independent valuation of Equator including the Liberian concessions held in BJR, the Northern Territory

Acacia tenements package and taxation losses;

 Review of the total creditors of EQU and allocation and agreement of those applicable to the Transaction;

 Equator obtaining confirmation in writing from the ASX & ASIC for clearance of the Transaction Agreement;

EMAIL: info@equatorresources.com.auWEBSITE: www.equatorresources.com.au

EQUATOR RESOURCES LIMITED 2

EQU0C0R\ASX188D

 Equator having obtained all approvals of the Equator Shareholders for the implementation of the Transaction required under the Corporations Act, the ASX Listing Rules or otherwise (including, if required, pursuant to ASX Listing Rule 11.1.2;.

 BJO Investors having obtained all approvals of its shareholders (if required) for the implementation of the

Transaction required under the Company's Act or otherwise;

 Cancellation of the BJO Investors shares in Equator as part of the Term Sheet settlement

 Foreign Investment Review Board conditions (if applicable); and

 Before Completion, none of the warranties provided by Equator is or has become materially false, misleading or incorrect.

Whilst the Binding Term Sheet is expressed to have legal binding effect, the above terms are subject to
Shareholder approval.
The Company is in the process of arranging an Independent Expert Report with Stantons International Pty Ltd and then will prepare a Notice of Meeting seeking Shareholder approval for the transaction.
An Independent Geologist has also been engaged to determine the valuation of the Liberian and Northern Territory assets and will work closely with the Independent Expert. The Company has been asked to provide significant documentation relating to the past drilling, exploration and assay results which it is compiling at the present.
Following Shareholder approval of the divestment of the Liberian assets, Equator with the Northern Territory assets and reduced liabilities will be in a position to consider and identify a suitable and sustainable transaction (s) for the Company going forward.
The Company has resolved to extend the current voluntary suspension which is in place, while it seeks to work with the Independent Expert and Geologist to conclude the Report for inclusion in the Notice of Meeting and for Shareholder consideration.
In accordance with ASX Listing Rule 17.1, the Company advises that:

1. It expects to remain in voluntary suspension pending progressing the corporate restructure;

2. The event that is expected to end the voluntary suspension is an announcement by Equator relating to the sell-off of the Liberian assets, the new structure of the corporate entity and a Notice of Meeting; which the Company anticipates it will be able to make no later than pre open of trading on Monday, 7 July 2014;

3. The Company is not aware of any reason why the voluntary suspension should not be granted; and

4. It is not aware of any other information necessary to inform the market about the suspension.

For more information, please contact:

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