Glass Lewis & Co. Affirms The Need For Change On Antares Energy's Board And Recommends Lone Star Value Nominees As New Director

 Glass Lewis & Co. Affirms The Need For Change On Antares Energy's Board And
    Recommends Lone Star Value Nominees As New Directors Of Antares Energy

Lone Star Value Urges All Antares Shareholders to Vote the BLUE AND WHITE
Proxy Form to Support the Election of ALL FIVE Lone Star Value Independent and
Experienced Candidates

PR Newswire

NEW YORK, July 15, 2014

NEW YORK, July 15, 2014 /PRNewswire/ --Leading independent proxy voting
advisory firm Glass Lewis & Co., LLC ("Glass Lewis") has recommended that
shareholders of Antares Energy Ltd (ASX: AZZ) (AZZEF) vote FOR the election of
four Lone Star Value independent director candidates at the 22 July General
Meeting and to remove two employee directors from the Board. Glass Lewis'
strong endorsement of Lone Star Value's campaign to revitalise the Antares
Board follows a favorable recommendation by the other leading proxy advisory
firm, Institutional Shareholders Services ("ISS"), last week, which also
expressed strong support of Lone Star Value's slate.

Glass Lewis' recommendation comes on the heels of recent comments by CEO James
Cruickshank claiming shareholder value creation at Antares. These claims are
not only misleading in Lone Star Value's view, but also were clearly found
unsubstantiated or unpersuasive by both Glass Lewis and ISS. When James
Cruickshank was appointed director on 8 October 2004, Antares was trading at
$0.61. On 5 May 2014, the date on which Lone Star Value announced its
intention to requisition a General Meeting, Antares' share price had fallen to
$0.435 – a 28.7% loss for investors during his directorship. In addition,
contrary to Cruickshank's claims, Antares failed to meet its own openly
publicised targets, "of realising a share price of $1.00 by 31st December
2011, $1.50 by 31st December 2012 and $2.00 by 31st December 2013." (See
Antares Energy Limited, 31 Oct. 2011 ASX/News Release).

In making its recommendation for change at Antares, Glass Lewis criticised
Antares' "mediocre disclosure around the Company's prospects and plans and
increasingly regressive and conflicted board policies and structures." Glass
Lewis concluded Lone Star Value's proposals offer a "compelling opportunity
for shareholders to reconstitute the board with independent, experienced
individuals poised to address the specific concerns raised." Glass Lewis
further affirmed that "an injection of independent perspectives -- five
independent members on a board of six -- is particularly crucial now."

Jeff Eberwein of Lone Star Value commented, "We are deeply gratified by the
overwhelming support we have received from both leading proxy advisory firms
and our fellow shareholders. We believe recent revelations of apparent
trading violations by two incumbent directors of Antares, serious questions
over the motivation behind a seemingly strategically incoherent convertible
note issuance, and the 'on-off-on' sale of all the Company's Permian Basin
assets have left shareholders and proxy advisors convinced of the need for a
stronger and independent Board to lead Antares. We are looking forward to an
opportunity to enhance shareholder rights and maximize value at Antares for
the benefit of all shareholders."

Mr. Eberwein urged shareholders to vote in favour of all five of its
independent, highly-qualified director candidates, Jeffrey Eberwein, Aaron
Kennon, Eric Hyman, William Fairhurst and Michael Sharwood, as well as
removing Antares' two employees, Mr. Shoemaker and Ms. McAppion, from the

Excerpts from Glass Lewis' Analysis & Recommendation

In Support of the Election of Lone Star Value's Director Candidates:

"We are inclined to suggest Lone Star presents reasonable cause -- both in
terms of a flatly confounding strategic procession and objectively mediocre
corporate governance -- to suggest investors would benefit from a fresh,
informed and, perhaps most importantly, independent perspective on those
alternatives available to the Company. This view takes into account arguments
submitted by Antares management, which, while sound in fits and spurts,
ultimately fail, in our view, to deflect weightier concerns surrounding what
appears to be an insular board room promulgating a regressively terse
disclosure regime and a functionally opaque growth strategy."

On the Strong Qualifications of Lone Star Value's Director Candidates:

"In particular, we note each of Messrs. Fairhurst, Hyman and Sharwood have
backgrounds in geology or petroleum engineering, with each of Messrs.
Fairhurst and Hyman posting current or prior executive service at oil and gas
exploration and production firms. Moreover, each of these individuals appears
to be independent from Antares. . . .Given a lengthy list of outstanding
governance concerns and a less than transparent pattern of disclosure, we are
similarly inclined to suggest all investors would benefit from an unaffiliated
shareholder advocate going forward. In consideration of the nominees that
might prospectively fill that role, we believe shareholders should support the
election of Mr. Kennon."

On Antares' Relative Share Price Performance:

"In particular, though we acknowledge Antares has modestly trailed a broad
small-cap industry index, we consider it more noteworthy that: (i) the Company
has heavily trailed the equal-weight peer composite over each of the selected
review periods; and (ii) the total three-year return to Antares investors
since the Company's stated involvement in the Permian Basin region is just
6.7%. We consider this offers very little support for the board's assertions
that Antares management is successfully generating compelling value for
investors since effectively becoming a Permian Basin pure-play. In addition,
while the board laments Lone Star's settlement arrangement with regional peer
Callon Petroleum Company as something of an undesired compromise by that firm,
it is worth considering Callon's shares were up 65.6% between October 16, 2013
-- the last date before Callon was approached by Lone Star -- and May 22,
2014. In contrast, Antares' shares were down 5.0% over the same period
(Source: Capital IQ)."

On Antares' Corporate Governance Failures:

"We note three out of the four sitting directors are insiders. In this
respect, we believe that the composition of the board raises very significant
concerns about its objectivity and ability to perform its proper oversight
role, in addition to material succession planning, renewal and other
composition deficiencies over a period of time. . . . In addition, without an
independent chairman -- indeed, with a sole executive holding several key
managerial roles in addition to the chairmanship -- the current board
structure fails to meet fundamental components of the ACSI and FSC

Lone Star Value urges all Antares shareholders to read carefully the materials
that Lone Star Value has mailed and may continue to mail to them as those
materials contain important information. Lone Star Value called on all
Antares shareholders to vote on its blue and white proxy card to improve the
Board of Antares.

For further information please visit our website,, or
call our shareholder information line, 1300 889 468 (from within Australia) or
+61 2 8022 7902 (from outside Australia).

Proxy voting enquiries please contact:
Murray Williams
+61 2 8022 7911

John Grau
203-972-9300 x11

Media enquiries please contact:
John Hurst
Cannings Corporate Communications
+61 418 708 663

SOURCE Lone Star Value Investors, LP
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