Black Star Petroleum Limited announced that it has entered into a Debt Write Down Agreement with its creditors to write down the company's debts from $630,168 to $250,000. The effect of the agreement is that the creditors have agreed to accept $250,000 in full and final satisfaction of their claims. The amount will be paid as follows, $100,000 immediately, and $50,000 every 90 days for the next 270 days. If the amount is not paid in full by the due date the full amount of $630,168 will be come due and payable. In order to finance the agreement, the company has entered into a loan agreement with Mr. Chin Han Tan, a Sydney based investor. Pursuant to the loan, Mr. Tan will provide an AUD 500,000 unsecured 12 month loan facility carrying an interest rate of 8% per annum. The tenure of the loan may be extended by agreement between the company and the lender. The funds received will be used to pay the first installment of $100,000 and for working capital.

The company also announced the appointment of Mr. James Sambrook as Non-Executive Chairman and Mr. David Low and Mr. Chia En Lau as Non-Executive Directors of the company. Mr. James Sambrook has more than 40 years of working experience in rubber and tyre industry worldwide having been national sales and marketing manager for Toyo Tyres Australia for 12 years, wholly in charge of sales and marketing for Toyo tyres for the entire Australian market. He was also the managing director of Bell Tread Pty Ltd. for 12 years, from 1988 to 2000, in charge of entire operations of Australia and Oceania markets. Mr. David Low has more than 20 years of investment banking and corporate finance experience in Asia and Australia having advised on various mergers and acquisitions, initial public offerings, fund raising (both debt and equity) and during the Asian Financial Crisis, corporate and debt restructuring. He was previously Director & Team Leader of MIMB Investment Bank before moving to Australia and joining the Asian Business Unit of Westpac Banking Corporation For personal use only as its Senior Manager and later Head of Corporate Finance of an ASX listed financial services company. Mr. Low is currently director of JCL Capital Pty Ltd. He is also Non-Executive Chairman of Ennox Group Ltd. and Executive Director of Syngas Limited. Mr. Chia En Lau has been working in the corporate sector for the past 21 years, of which he has practiced corporate finance for at least 18 years in investment banks and stock broking environment in Malaysia. The Board also announced the resignation of Mr. Brian McMaster, Mr. Matthew Wood and Mr. Mark Reilly as directors of the company. The new board will reassess the current remaining assets of the company as to its viability and will continue to explore recapitalization strategies. In addition, the Board also announced the appointment of Mr. Ian Gregory as Company Secretary replacing Mr. Jonathan Hart, who has resigned with effect from May 11, 2016. Mr. Ian Gregory (B.Bus, FGIA, FCIS, F Fin, MAICD) has over 30 years' experience in the provision of company secretarial and business administration services to listed and unlisted companies. Companies for which Ian has acted as Company Secretary include Iluka Resources Limited, IBJ Australia Bank Limited and the Griffin Coal Mining Group of companies. He currently consults on secretarial matters to a number of listed and unlisted companies. Ian is a member of the Western Australian Branch Council of Governance Institute of Australia (GIA), a past Chairman of that body and has also served on the National Council of GIA.