EMPIRE OIL & GAS NL
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E M A I L i n f o @ e m p i r e o i l . c o m . a u
W E B w w w . e m p i r e o i l . c o m . a u
28 October 2013
The Manager
The Australian Securities Exchange
Company Announcements Office
Level 4/20 Bridge Street
SYDNEY NSW 2000
Dear Sir/Madam
RE: EMPIRE'S RESPONSE TO ERM'S RELEASE OF 24 OCTOBER 2013
Please find attached Empire Oil & Gas NL's response to the ASX announcement released by ERM Power Limited on 24 October, 2013 relating to indemnities provided by the Company to three of its Directors.
Yours faithfully
Kim Hogg
Company Secretary
EMPIRE OIL & GAS NL
EMPIRE OIL & GAS NL ASX RELEASE
28 October 2013
Empire's Response to ERM's Release of 24 October 2013
The Company notes the lengthy announcement released by ERM Power Limited on 24 October 2013 in relation to indemnities provided by the Company to three of its Directors in relation to legal costs concerning defamation proceedings brought by those Directors.
As set out in the Company's 2013 Annual Report the Company has received legal advice that the allegations in the defamatory material affect the Company and the reputation of the Company's Directors and employees. The Directors commenced defamation actions on the basis that the Company is statutorily barred from undertaking such an action and the Board considered the widely publicised statements complained of to be detrimental to the interests and reputation of the Company itself. All proceeds received in relation to the litigation have been and will be for the benefit of the Company. In addition to payments received to date the defamation proceedings and associated concerns notices have resulted in retractions, apologies and undertakings from a number of parties as well as the removal of significant defamatory material in relation to both the Company and its Directors from the public domain, which the Company considers to be in the interests of all shareholders.
The Company notes ERM Power's statement that Empire has failed to answer key questions from ERM Power about the indemnities. On 11 October 2013 the lawyers acting for the directors wrote to one of ERM Power's nominees for the Company's Board, Mr Brett Heading, inviting him to attend their offices to review their records and speak to them in relation to the defamation proceedings so that ERM Power could obtain the information it was seeking. No response has been received to that invitation.
Finally the Company notes Mr Iannello's statement that if elected he will take legal advice in relation to the possibility of recovering the costs from the Directors involved. One of those directors,
Dr Bevan Warris, is not the subject of the requisition from ERM Power and ERM Power has noted that it supports Dr Warris continuing on the Board as an executive director if ERM Power's two nominees are elected.
The Company is concerned that if ERM Power's proposed resolutions are successful the Company will be overseen by a Board that includes one director who is taking legal advice in relation to the
Company suing one of its other directors.
229 Stirling Highway
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A U S T R A L I A
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Em: [email protected]