ASX ANNOUNCEMENT MEDIA RELEASE 22 FEBRUARY 2013 Update: Voluntary Administration of Kagara Limited

On 22 February 2013 the Federal Court of Australia ("Federal Court") made orders granting the Administrators* a further extension of the convening period for the administrations of Kagara Limited (Administrators Appointed) ("Company"), Kagara Copper Pty Ltd (Administrators Appointed), Mungana Pty Ltd (Administrators Appointed) and Einasleigh Mining Pty Ltd (Administrators Appointed) ("the Group"), for a further period of up to two months, to 30 April
2013.
As a result of the orders made by the Federal Court today, the Administrators may report to creditors under section 439A of the Corporations Act 2001 ("the Act") and convene a second meeting of creditors of each member of the Group (together or separately) at any time up to and including 30 April 2013.
The decision to seek an additional extension of the convening period is a result of the recent issues arising from completion of the binding Heads of Agreement ("the HoA") which may delay the termination of the Gold Rights Agreement between the Company and Mungana Pty Ltd and Mungana Goldmines Ltd ("MUX"). This extension of the convening period will allow the Administrators further time to resolve these issues regarding the HoA and to progress the sale/restructure process of the remaining mining projects with a view to trying to obtain the best possible outcome for creditors.
The Administrators also sought an extension from the Australian Securities and Investments Commission ("ASIC") for relief to the Group from compliance with sections 315 and 319 of the Act for the financial year ending on 30 June 2012, and with section 320 of the Act for the half- year ending 31 December 2012.
The extension to the relief granted by ASIC to the Company is set out below: