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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  Media enquiries please contact: John Hurst Cannings Corporate Communications +61 418 708 663  SOURCE Lone Star Value Investors, LP  
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