ASX Release

19 December 2014

US Federal Bankruptcy Court Further Update

As  previously  announced,  on  Friday  5  December  2014  the  US  Federal  Bankruptcy  Court  refused  an  application  by  Castlelake  LP  to  set  aside  the  bankruptcy  of  Marion  Energy,  Inc.    However,  the  Court  also  refused  an  application  by  Marion  Energy,  Inc.  (MEI)  to  allow  super-­‐priority  for  working  capital  funding  during  the  bankruptcy  period.    The  Court  ordered  that  Marion  Energy  Inc.  would  have  bankruptcy  protection  from  its  creditors  until  1  June  2015.  
Since  that  time,  the  board  of  Marion  Energy  Inc.  had  been  in  discussion  with  Castlelake  LP  in  relation  to  funding  the  working  capital  requirements  of  MEI  during  the  
bankruptcy  period  but  those  discussions  did  not  result  in  agreement.    That  left  MEI  with  
no  option  but  to  bring  the  matter  back  to  the  US  Federal  Bankruptcy  Court  on  Wednesday  17  December  2014.    At  that  time,  the  Judge  refused  to  vary  his  earlier  orders,  leaving  the  parties  in  a  continuing  impasse.  
Since  that  time,  further  discussions  have  taken  place  with  Castlelake  LP.    Those  discussions  have  not  yet  reached  a  conclusion.    When  they  do  reach  a  conclusion  (whether  successful  or  otherwise)  the  Company  expects  to  make  a  further  announcement.  

Marion Energy Limited

Per:  

Nick  Stretch  Company  Secretary  

Suite 802, 530 Little Collins St. Melbourne Victoria 3000 Australia

Marion Energy Limited

ABN 99 000 031 292

Tel: +61 3 9620 2223 Fax: +61 3 8692 9976 www.marionenergy.com.au