Lone Star Value Puts Antares Energy Board Of Directors On Notice Regarding Recent Questionable Conduct

  Lone Star Value Puts Antares Energy Board Of Directors On Notice Regarding
                         Recent Questionable Conduct

Demands Immediate Release of Recipients of Recent Convertible Note Issuance

Asks Antares Board for Explanation of Alleged Trading Violations by CEO
Cruickshank and Director Shoemaker and Related ASIC Investigations of Both

PR Newswire

NEW YORK, July 15, 2014

NEW YORK, July 15, 2014 /PRNewswire/ --Lone Star Value Investors, LP is a
significant shareholder of Antares Energy Limited (ASX: AZZ) (AZZEF) and is
seeking the election of five independent directors and the removal of two
employee directors at 22 July General Meeting of Antares. Lone Star Value
today demanded an immediate response from the Board of Directors of Antares
regarding questionable trading activity by CEO Cruickshank and Director
Shoemaker as well as the timing and the selective placement of the recent
convertible note issuance which may have put in the hands of unknown parties a
significant voting power right before the general meeting.

Lone Star Value believes Antares shareholders deserve an immediate response
to:

  oDirector Shoemaker purchasing 15,335 shares of Antares in the open market
    at $0.51 on 27 June ahead of the 7 July asset sale announcement which led
    to an increase in the share price to its current $0.65 level, a 27% gain
    in a week. The timing of Director Shoemaker's purchase so close to the
    asset sale announcement should be fully explained by Antares' Board in
    light of Australian securities law and Antares' own trading policies which
    prohibit trading on the basis of material non-public information.
    Following our submission of a complaint, ASIC has informed us it is
    considering launching a formal investigation into Mr. Shoemaker's trading
    activity.
  oLack of disclosure of the recipients of the recent $19.5 million 10%
    convertible note offering on 24 June, despite Lone Star Value's specific
    request for this information. The notes which are convertible into voting
    stock now trade at $2.20 versus their $2.00 offering price due to the
    impending asset sale announced a week after the notes' placement – a 10%
    return in a week's time for the select few (as yet anonymous) investors
    invited to participate. Lone Star Value is concerned that Antares may have
    sought to secure the votes of select shareholders via this private note
    issuance – an issuance made superfluous and unnecessary given Antares'
    subsequent announcement of the sale of substantially all of its assets on
    7 July for US$300 million. This is the second time in a year that Antares
    announced a sale of all its assets for cash and raised additional capital
    at roughly the same time – we find this behaviour inexplicable. There is
    no good reason we can see to raise additional capital if the Company is
    about to receive a large amount of cash by selling all its assets. Lone
    Star Value believes Antares should immediately publicly disclose who
    purchased these notes and if there is any voting agreement with the
    purchasers.
  oChairman and CEO James Cruickshank's questionable trading activity
    surrounding last year's asset sale announcement when he purchased 125,000
    shares at a price of $0.32 right before the June 2013 asset sale
    announcement, which caused the stock to increase 71% in one day to $0.48.
    We understand ASIC has received complaints and is considering whether to
    launch a formal investigation into CEO Cruickshank's trading activity.

Jeff Eberwein of Lone Star Value remarked, "We believe Antares' shareholders
deserve an immediate and full response to these questionable activities. It
is unacceptable that the vote at the upcoming 22 July General Meeting should
be corrupted by misinformation, potential quid pro quo vote procurement in
exchange for valuable convertible notes, and the omission of critical
information. We call on Antares' Board to immediately provide full and
accurate disclosure to shareholders regarding the questions we have raised so
they can make an informed decision regarding the important issues for the
future of Antares that will be decided on 22 July."

Lone Star Value urges all Antares Energy shareholders to vote the BLUE AND
WHITE proxy form to support the election of Lone Star Value's independent and
experienced candidates, and reminds Antares Energy shareholders that leading
proxy advisory firm Institutional Shareholder Services ("ISS") has endorsed
Lone Star Value's candidates as well as the removal of two current Antares
employee directors.

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

USA:
John Grau
InvestorCom
203-972-9300 x11
jgrau@investor-com.com

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

SOURCE Lone Star Value Investors, LP
 
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