Lone Star Value Proposes New Direction for Antares

              Lone Star Value Proposes New Direction for Antares

Serves Notice to Requisition Shareholder Meeting to Elect Five
Highly-Qualified Independent Directors to Antares Board

PR Newswire

NEW YORK, May 22 2014

NEW YORK, May 22 2014 /PRNewswire/ --Lone Star Value Investors, LP (together
with its affiliates, "Lone Star Value" or "we"), a significant shareholder of
Antares Energy Limited (ASX: AZZ) (OTC: AZZEF) ("Antares" or the "Company"),
today unveiled a plan to improve the Board of Directors of Antares by adding
five independent directors with extensive and deep experience relevant to
Antares' business.

Lone Star Value, which owns 6.0% of the outstanding shares in Antares, today
served the Company with a Notice requisitioning an Extraordinary General
Meeting ("EGM") of Antares' shareholders to vote on the election of its five
highly-qualified independent director candidates. Lone Star Value believes
that a reconstituted Board is a critical first step to properly executing on a
long term growth strategy based on improved corporate governance and a more
rigorous approach to capital management and asset development.

Lone Star Value is also seeking to remove two current directors who have not
enjoyed the full support of shareholders or proxy advisers - Vicky McAppion
and Greg Shoemaker - and we note that at the last two annual meetings it had
been recommended that shareholders vote against their reappointments. In his
capacity as an employee Mr. Shoemaker is Antares' Scientific Officer,
therefore we believe there is a conflict of interest between his role as an
executive employee and as a director. The appointment of five nominated truly
independent directors, whose roles would not be conflicted by employment
duties, will provide Antares with the board expertise it requires going
forward.

The Notice requisitioning the EGM was lodged today with the company under
section 249D of the Corporations Act. Lone Star Value has developed a Five
Point Plan which in its estimate can double Antares' stock price if
successfully executed. The implementation and oversight of Lone Star Value's
Five Point Plan to maximize shareholder value require fresh perspective,
independence and the broad range of skill sets on the Board that Lone Star
Value's nominees possess.

Lone Star Value's Five Point Plan to maximize shareholder value includes:

1.Appointing new Directors with the appropriate financial, operating and
    technical expertise
2.Reviewing Antares' current strategy and exploring all strategic
    alternatives
3.Considering a potential share market listing in the US
4.Lowering Antares' cost of capital
5.Steadily increasing production through increased drilling activity

Jeff Eberwein, founder of Lone Star Value and a nominee stated: "We see
tremendous intrinsic value in Antares' shares that we believe the market
continues to discount. Clearly Antares' performance to date has been very
disappointing. We believe that we can bring about real change and unlock value
from the company's portfolio of oil and gas assets. There has been a lack of
transparency, poor communication surrounding the failed sale of assets last
year, a lack of board independence and executive remuneration has been out of
synch with pay-for-performance. We are confident that significant value can be
unlocked under the stewardship of an enhanced Board overseeing a strategically
coherent plan. Our objective is to maximize value for all shareholders."

Mr Eberwein reiterated a call for the incumbent Board not to take actions
adverse to the best interests of the Antares shareholders prior to the EGM,
such as: issuing equity or equity-linked securities (specifically further
convertible debt offerings); being uncooperative or hindering Lone Star Value
in calling this EGM; agreeing to sell material assets of the Company
(including any of its projects); making material acquisitions, forming joint
ventures, or adding any further members to the Board prior to the EGM.

Shareholders will be advised in coming days about the date for the EGM and
Lone Star Value will continue to provide shareholders with updated information
about its proposed turnaround strategy.

Shareholders can also seek additional information via the shareholder helpline
on 1300 889 468 or if calling from outside Australia +61 2 8022 7902. Or by
visiting www.antaresvalue.com.au.

For media enquiries please contact:

John Hurst
Cannings Corporate Communications
+61 418 708 663

SOURCE Lone Star Value Management, LLC
 
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