Lachlan Star : Extension of Convening Period

5 March 2015

The Administrators wish to advise that, as contemplated at the first meeting of the Company's creditors held on
25 February 2015, they have sought and obtained orders from Master Sanderson in the Supreme Court of Western Australia in the matter COR 41 of 2015, for the extension of the convening period with respect to the Company from 16 March 2015 to 12 June 2015, pursuant to section 439A(6) of the Corporations Act 2001 (Cth.)("the Orders"). The Orders are currently being extracted, and will be available upon request from this office in due course.
The effect of the Orders is that the second meeting of creditors of the Company ("the Second Meeting") may now be convened at any time up to 12 June 2015. The purpose of the application is principally to allow interested parties sufficient time to submit binding proposals to restructure and recapitalise the Company. During the Administration it became evident that the timeframe set out under the Corporations Act was likely to be insufficient to allow this process to complete, having regard for the complexity associated with transacting on the Company's investment in the CMD Gold Mine in Chile. Notwithstanding the extension to 12 June 2015, the Administrators intend to finalise negotiations and call and hold the Second Meeting as soon as is practicable.

PO Box 1523 West Perth, WA 6872 Tel +61 8 9481 0051 Fax +61 8 9481 0052

www.lachlanstar.com.au

We advise that the Orders grant liberty to any person who can demonstrate sufficient interest, including any creditor of the Company or the Australian Securities and Investments Commission, to apply to the court to modify or discharge the Orders.
Should you require any further information with respect to the above, please contact Aidan Gordon of my office on +61 8 9263 7421, or alternatively via email to aidangordon@kpmg.com.au.
Matthew Woods

Voluntary Administrator

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