SUPERllylE COURT OF QUEENSLAND REGISTRY: BRISBANE NUMBER: BS 6593/17 First Plaintiff: STEPHEN JAMES PAREERY AND MICHAlaL ANDREW OWEN IN THEIR CAPACITIES As LIQUIDATORS OF QUEENSLAND NICKEL PTY LTD ON LIQ) ACN 009 842 068 AND Second Plaintiff QUEENSLAND NICKEL PTY LTD UN LIQ) ACN 009842 068 AND First Defendant: QNI METALS PTY LTD ACN 066656175 AND Second Defendant: QNI RESOURCES PTY LTD ACN 0541/7921 AND Third Defendant: QUEENSLAND NICKEL SALES PTY LTD ACN 009872 566 AND Fourth Defendant: CLIVE FunDERICK PALMER AND Fifth Defendant: CLIVE THEODORE MENSINK AND Sixth Defendant: IANllylAl. IruCE FERGUSON AND Signed: Taken by: I, ^.*,^ AFFIDAVIT Cmve F Palmer Filed on behalfof the Fourth Defendant Level 17,240 Queen Street Fonn 46, Version I Brisbane QLD 4000 Unifomi Civil Procedure Rules 1999 Tel: (07) 38322044 Email: pilbera@yahoo. coin Rule 431 Seventh Defendant: MINERALOGY PTY LTD ACN 010 582680 AND Eighth Defendant : PALMER LEISURE AUSTRALIA PTY LTD ACN 152386617 AND Ninth Defendant: PALMER LEISURE COOLl. IM PTY LTD ACN 146828122 AND Tenth Defendant: FAIRWAY COAL Pry LTD ACN 127220642 AND Eleventh Defendant: CART PROVIDER PTY LTD ACN 119455837 AND Twelfth Defendant: COEUR DE LEON INVESTMENTS PTY LTD ACN 006334872 AND Thirteenth Defendant: COEUR DE LEON HOLDINGS PTY LTD ACN 003209934 AND Fourteenth Defendant: CLOSERIDGE FTY LTD ACN 010 560 157 AND Fifteenth Defendant: WARATAll COAL FTY LTD ACN 1/4/65669 AND Sixteenth Defendant: CHINA FIRST PTY LTD ACN 135588411 AND Seventeenth Defendant: COLD MOUNTAIN STUD Pry LTD ACN 119455248 , Signed: .\ Taken by: ,, , AND Eigliteenth Defendant: EVGENIA BEDNOVA AND Nineteenth Defendant: ALEXANDER CUEORciiiEv soKOLov AND Twentieth Defendant: ZHENGHONG ZHANG AND Twenty-First Defendant: SCI LE COEIJR DE L'OCEAN FOURTH AFFIDAVIT I, DAREN WOLFE of I Stariton Terrace, Townsville in the State of Queensland, solemnly and sincerely affinn and declare: I . The contents of this affidavit are true to my own knowledge, save where I have indicated otherwise. Where a fact is true to the best of my infonnation and belief, that fact is stated and the source of the infonnation and belief is identified. I refer to my affidavit affinned on 21 August 2017 in this proceeding (Previous Affidavit) [CF161-64] and my affidavits affinnedin this proceeding on 5 September 2017 (2"' Wolfe Affidavit) [CF1 101], 13 September 2017 (3" Wolfe Affidavit), and 20 October 2017 (4" Wolfe Affidavit). Previous roles with the QN Group 3 . I refer to paragraphs 3 to 6 of my Previous Affidavit, where my roles and functions within the QN Group from 2009 to 2016 were detailed. In my roles as Finance Director and CFO, I became aware of various contractual relationships between the QN Group and third parties. The activities of the QN Group necessitated relationships with many thousands of suppliers. I am aware that not every employee within the finance department at QN had detailed knowledge of all contractual relationships with third parties. Signed: ^^^^^. Taken by: Queensland Nickel Joint Venture 6. I refer to the Affidavit sworn by Stephen James Parbery on 2 August 2017 IParbery Affidavitl and the indexed paginated bundle of documents exhibited thereto and marked as Sip- I . I note that paragraph 20 and 21 of the Parbery Affidavit make reference to the Joint Venture Agreement (JVA) which was executed on 17 September 1992, and the Administration Agreement which was executed on 17 September 1992 (Administration Agreement). I note that pages 265 to 357 of SJP-I exhibit the IVA. I note also that pages 358 to 375 of SJP-I exhibit the Administration Agreement. Through my own recollection and belief, I can confinn that the Queensland Nickel Joint Venture (QNJV) was established in 1992, with the joint venture parties operating under the auspices of both the JVA and Administration Agreement. I I . Under the IVA, QN acted as Manager of the QNJV. 12. As Manager of the QNJV, QN was responsible for achieving the purpose of the joint venture. Clause 2.1(a) of the JVA described the purpose of the joint venture as producing products for delivery to or as directed by each of the joint venturers. Under clause 3.3 of the JVA, once nickel had been produced it became the property of the Joint Venturers in each of their respective interests. 14. Under clause 3.1 of the Administration Agreement, the function and primary responsibility of QN was to provide Management Services to the joint venture partners, QNR and QNM. 15. Under the Administration Agreement, QN was appointed as agent by QNR and QNM under clause 3.2(d) to negotiate sales contracts, and under clause 3.2(a) to manage debtors of the joint venturers in relation to the sale of their subject products. Palmer Contro"ed Period 16. On 31 July 2009, entities controlled by Mr Palmer acquired a I 00% interest in QNR and QNM. 17. The Manager of the QNJV, QN, entered voluntary administration on 18 January 2016. 18. Accordingly, the period in which Mr Palmer had control over the QNJV was from 31 July 2009 until 18 January 2016 (Palmer Cointro"ed Period). Payment of Expenses and Conectiom of Receipts 19. Clause 6.4 of the IVA provided a mechanism for calls to be made by QN to the joint venture partners. Signed: >,^.. Taken by: PI'/^. . , , ^ , ,. 20. Once a call was made, any funds deposited in accordance with the call notice would belong to each joint venture partner in proportion to the amounts respectively paid, under clause 6.4(f) of the IVA. The other way that joint venture costs could be paid was by the joint venture partners paying expenses with their own funds in accordance with clause 5.2(b) of the IVA. 22. During the Palmer Controlled Period, I am not aware of any calls being made under the IVA by QN for funds from QNR or QNM. 23. Previous to the Palmer Controlled Period, I am aware that calls had been made from time to time. 24. The practice during the Palmer Controlled Period was that QN would receive proceeds of sale of Products for and on behalf of the joint venture partners, and QN would retain these funds as their agent. 25. Those funds would then be paid as the principal (QNR and QNM) directed, in order to meet obligations of the principal. 26. During the Palmer Controlled Period, the Manager's costs and expenses would be paid directly from the funds that the agent had in their account, and was holding on behalf of each of QNR and QNM. 27. From time to time, other payments would also be made by the agent as directed by the principal. 28. During the Palmer Controlled Period, each of the joint venture partners had their financial accounts audited by Emst Young (EY), and an audit was also undertaken of the consolidated QN Group by EY each year. Exhibited in my Previous Affidavit and marked DW-02 are the Audited Accounts and Consolidated Accounts for the I I months ended 3 0 June 20 I 0 and financial years ended 2011 to 2015. 29. The Audited Accounts of QNR and QNM each year recorded the receipts for sale of all Products, and payments that QNR and QNM, as principal, had directed the agent to make. 30. During the Palmer Controlled Period, QNR and QNM lodged income tax returns with the Australian Taxation Office, which recorded their commercial results including all revenue from sale of products and financial obligations incurred during the financial year. Exhibited in my Previous Affidavit and marked DW-04 are the income tax returns for QNM and QNR for each financial year from July 2010 to June 2015. Signed: Taken by: , . , , All agreement was entered into on 4 August 2009 with Glencore for the sale of nickel compacts. QN entered this agi'Gement as agent for QNR and QNM. This agi'Gement and subsequent variations thereto, provided for the sale of nickel compacts produced from I December 2009 to the end of the Palmer Controlled Period, which accounted for approximately 76% of total nickel produced and 67% of total revenue in the financial year ended 30 June 2015. Exhibited hereto and marked DW-18 is a copy of the sales agi. Gement entered into with Glencore for the sale of nickel compacts dated 4 August 2009. 32. Other Products produced included nickel oxide, basic nickel carbonate, cobalt sulphide, and cobalt oxide hydroxide. These products were sold by QN as agent for and on behalf of QNR and QNM, and all sales revenue from these products were recorded in the audited accounts and tax returns for each of QNR and QNM for each respective financial year. 33. Sundry revenue was received by the joint venture partners from time to time for lease rental income, sale of scrap and by-products, and disposal of surplus plant and equipment. Such sundry income was received by QN as agent for and on behalf of QNR and QNM, and was recorded in the audited accounts and tax returns for each of QNR and QNM for each respective financial year. 34. To my knowledge, during the Palmer Controlled Period, QN had no access to any funds from any source other than as set out above, including QNR and QNM. Ratification of Actions Taken by Directors and Officers of QNR and QNM 35. I was invited as an observer and duly attended a meeting held in Brisbane at 12.45pm on I September 2016. Also present at that meeting was Mr Palmer, representing Nickel Resources Pty Ltd, Nickel Consolidated Pty Ltd, and Nickel House Pty Ltd, and Mr Jonathan Shaw, solicitor. Collectively, the three companies listed above hold I 00% of the shares of QNM, and the meeting was a meeting of members of QNM. 36. At that meeting, a motion was passed to ratify all actions taken by directors and officers of the company (QNM) on behalf of the company dimng the perlod from 31 July 2009 to I September 2016. Exhibited hereto and marked DW-19 is a copy of the minutes of the QNM shareholders' meeting held on I September 2016. 37. I was also invited as an observer and duly attended a meeting held in Brisbane at 12.50pm on I September 2016. Also present at that meeting was Mr Palmer, representing Nickel Resources Pty Ltd, Nickel Consolidated Pty Ltd, and Nickel House Pty Ltd, and Mr Jonathan Shaw, solicitor. Collectively, the three companies listed above hold I 00% of the shares of QNR, and the meeting was a meeting of members of QNR. Signed: I , ~, Taken by: 38. At that meeting, a motion was passed to ratify all actions taken by directors and officers of the company (QNR) on behalf of the company during the perlod from 31 July 2009 to I September 2016. Exhibited hereto and marked DW-20 is a copy of the minutes of the QNR shareholders' meeting held on I September 2016. 39. I have been shown a copy of minutes of a meeting held in Brisbane at 4.07pm on 21 November 2017. Present at that meeting was Mr Palmer, representing Nickel Resources Pty Ltd, Nickel Consolidated Pty Ltd, and Nickel House Pty Ltd, and Mr Michael Mashayanyika. Collectively, the three companies listed above hold I 00% of the shares of QNM, and the meeting was a meeting of members of QNM. 40. At that meeting, motions were passed to: (a) approve and ratify all payments made by QN as agent and/or trustee for QNM and all payments made at the direction of Clive Palmer during the period from I July 2009 to '8 January 2016; (b) ratify all directions given by Clive Palmer to QN given in any capacity in the period I July 2009 to 30 March 2016; (c) ratify and approve all actions, payments, and activities of Clive Palmer for the period I July 2009 to 21 November 2017; and (d) ratify and confinn that Clive F Palmer has and had full authority to act for and on QNM's behalfat antimes and for allpurposes from I July2009 to 21 November 2017. 41. Exhibited hereto and marked DW-21 is a copy of the minutes of the QNM shareholders' meeting held on 21 November 2017. 42. I have been shown a copy of minutes of a meeting held in Brisbane at 4.09pm on 21 November 2017. Present at that meeting was Mr Palmer, representing Nickel Resources Pty Ltd, Nickel Consolidated Pty Ltd, and Nickel House Pty Ltd, and Mr Michael Mashayanyika. Collectively, the three companies listed above hold I 00% of the shares of QNR, and the meeting was a meeting of members of QNR. 43. At that meeting, motions were passed to: (a) approve and ratify all payments made by QN as agent and'or trustee for QNR and all payments made at the direction of Clive Palmer daring the period from I July 2009 to I8 January 2016; (b) ratify all directions given by Clive Palmer to QN given in any capacity in the period I July 2009 to 30 March 2016; (c) ratify and approve all actions, payments, and activities of Clive Palmer for the period I July 2009 to 21 November 2017; and Signed: Taken by: 11,^. (d) ratify and confinn that Clive F Palmer has and had full authority to act for and on QNR's behalfat all times and for allpurposes from I July 2009 to 21 November 2017. 44. Exhibited hereto and marked DW-22 is a copy of the minutes of the QNR shareholders' meeting held on 21 November 2017. AFFIRMlaD by DAREN WOLFE on 17 January 2018 at TOWNSVILLE, in the State of Queensland, in the presence of: \I**;, S\ C!46' I \ Deponent '53' b ' 4.4 Q o . o'63' ,,,.. JUST \\$1,611 't:^^;^?^';3^;;^^';^^::' ' C^a-^a^'^:/E, ,,,,^,^v' Justice of the Peace I genei^ ;Z~A-,^I ^"I^~'^, ^.,, 36~^:"a^.,^, C, .,'@", Signed: Taken by: SUPREME COURT OF QUEENSLAND REGISTRY : BRISBANE NUMBER: BS 6593/17 First Plaintiff: STEPHEN JAMES PAREERY AND MICHAEL ANDREW OWEN IN THEIR CAPACITIES As LIQUIDATORS OF QUEENSLAND NICKEL PTY LTD (IN LIQ) ACN 009842068 AND Second Plaintiff: QUEENSLAND NICKEL PTY LTD (IN LIQ) ACN 009 842 068 AND First Defendant: QNI METALS PTY LTD ACN 066656175 AND Second Defendant: QNI RESOURCES PTY LTD ACN 0541/7921 AND Third Defendant: QUEENSLAND NICKEL SALES PTY LTD ACN 009872566 AND Fourth Defendant: CLIVE EruDERICK PALMER AND Fifth Defendant: CLIVE THEODORE MENSINK AND Sixth Defendant: IAN MAURICE FERGIJSON AND CERTIFICATE OF EXHIBIT Filed on behalf of the Defendants Fomi 47, Version 2 Unifonn Civil Procedure Rules 1999 Rule 435 Cmve F Palmer Level 17,240 Queen Street Brisbane QLD 4000 Tel: (07) 38322044 Email: pilbera@yahoo. coin Seventh Defendant: MINERALOGY PTY LTD ACN 010 582680 AND Eig}Ith Defendant: PALMER LEISURE AUSTRALIA PTY LTD ACN 152386617 AND Ninth Defendant: PALMER LEISURE COOLUM PTY LTD ACN 146828 122 AND Tenth Defendant: FAIRWAY COAL FTY LTD ACN 127220642 AND Eleventh Defendant: CART PROVIDER Fry LTD ACN 119455837 AND Twelfth Defendant: COEUR DE LEON INVESTMENTS PTY LTD ACN 006334872 AND Thirteenth Defendant: COEUR IDE LEON HOLDINGS PTY LTD ACN 003209934 AND Fourteenth Defendant: CLOSERIDGE Fry LTD CAN 010 560 157 AND Fifteenth Defendant: WARATAH COAL Pry LTD ACN 1/4/65669 AND Sixteenth Defendant: CHINA FIRST PTY LTD ACN 135588411 AND Seventeenth Defendant: COLD MOUNTAIN STUD lPTY LTD ACN 119455248 AND -3- EVGENIA BEDNOVA Eigliteenth Defendant: AND Nineteenth Defendant: ALEXANDER CLIEORGi. 11EV SoKOLov AND Twentieth Defendant: ZHENGHONG ZHANG AND Twenty-First Defendant: SCI LE COEIJR DE L'OCEAN CERTIFICATE OF EXHIBIT Exhibits DW-18 to DW-22 to the affidavit of Daren Wolfe affinned on 17 January 2018 Exhibit Number Description Page Numbers DW-18 Agreement with Glencore for the sale of nickel compacts I - 14 DW-19 Minutes of QNM shareholders' meeting on I Sep 2016 15 DW-20 Minutes of QNR shareholders' meeting on I Sep 2016 16 DW-21 Minutes of QNM shareholders' meeting on I Sep 2016 17-18 DW-22 Minutes of QNR shareholders' meeting on I Sep 2016 19-20 ^ SS\0, . .. DEC( ,.\!' *_.*. 42;' * 0.21, P';^=:> : - ^*' ,'^',' ' '.., 0. ;3 . OF ' <;-',.' Signed: \ Depo nt Taken by: "'*^^. Air ,. Justice of the Peace I Senei^ "DW- 18" GLENCOR^ INTERNATIONAL AC CONTRACT No. 227-09-15539-F TmS CONTRACT is mude on 4th August 2009. BETWE^I': QUEENSLAND NICKEL Pry LTD ABN 85 009 842 068 I Greenvale Street Yabulu QLD, 4818 AUSTRALIA 0'1ereir^fter called the "Manager" or the "Seller") Qin METALS pry LTD ACN 066656575 I Greenvale Street Yabulu QLD, 4818 AUSTRALIA 01ereiriafter called the "QinM") QNI RESOURCES Pry LTD ACN 0541/7921 I Greenvale Street Yabulti QLD, 4818 AUSTRALIA 0'1ereinafter called the "QinR") GLENCORE D\1'1ERNAnONAL AG Baarermattstrasse 3 P. 0. Box 777 6341 Baar Switzerland (hereinafter called the "Buyer") WHEREAS QNl^^I and QNIR, co-joint venturers under Australian law, respectively own 20 percent and 80 percent of the Yabulu refinery located 25 kilometres north-west Baarermattstrasse 3 . P. 0. Box 777 . CH-6341 Baar . Switzerland Telephone (041) 7092000 . Telefax (041) 7093000 . Telex 865272 001 GLENCORE Contract No. 2274)9-15539-P Page 2 of Townsville and all production thereftom. The Yabulu refinery is managed by the Manager. WHEREAS the Manager, on behalf of each of QN^I and QNER. (on a joint and several basis), in its capadty as a Sener agrees to sell, and the Buyer agrees to purchase, all Material (defined below) produced at the Yabulu refinery, and as parr of the sale and purchase transaction, the Buyer agrees to provide to the Sener an interest free line of credit in the form of a pre-payment mediariism as set out below for an aggregate amount up to Us080 million or such greater amount which can be supported by deliveries of compacts in accordance with the tenns set out below, in each case, subject to and conditional upon the tern^ and conditions herein THE PARnES AGREES As FOLLOWS: I. MATERIAL: Prim^y nickel in the fom, of compacts which meets the spedfications set out in Armexure B. Should the Sener produce material not cordoLLLULig to limitinum/muximium specifications contair. ed in Armexure B, the parties shall meet to mutually agree the price (including a discount component) for such noncor^or, ,,., g muterial on a case-by-case basis. Am initial tenn of five years and one month coriumendng I December 2009 to 31 December 2014, thereafter the Contract shall autoir, atically renew for flirther teLub of five years each unless and until one party provides to the other written teLLLit. ,ation notice at least six calendar months prior to the e>cpiration of the then prevailing fiveyear term QUANTITY: 1009'0 of the armual nichel compact production of the Yabulu plant owned by the Sener which is estirnated to be 23'000MT (+/-109".) per armorn. The Seiner shall provide armual production forecasts and schedules tritee mont}, s prior to start of each calendar year. The Seller shall thereafter provide monthly and a^ee monthly forecast schedules in advance to Buyer ATiy disruptions to production and delivery schedules shall be promptly COLLuiiuriicated to the Buyer. DELIVERY: FOB Townsville/Australia (Incotenris 2000). Material shall be packed in non-returnable bags contairitng 2000kg of Material or, subject to the parties' agreement, in bulk contair, ers. 002 GLENcoR^ Contract No. 227-09-15539-P Page 3 The Buyer shall use its reasonable codeavours to advise the Seller of its vessel nomination and the required tonnage for a calendar month at the latest by the 15'' day of that month. Should the Buyer fail to do so or not provide vessel normriations for the full available quantity of Material, the Seller shall consult with the Buyer to confirm delivery trustructions. Failing clear instructions from the Buyer after such coneultation, the Sener shaU deliver the Material to the bonded warehouse in TownsviMe nom^ted by the Buyer and the immediately proceedir, g paragraph SI^U apply. Notwit}1st andirig any of the above, the Buyer may at its option, by one month's advance notice to the Sener, elect to store Material in a bonded warehouse in TownsviUe nomiriated by the Buyer for any period of time. Freight, insurance and packaging parity of Yabulu refinery to FOB Townsville and warehouse rental cost shall be for Buyer's account, provided that, the Seller shall rernair, responsible for delivering the Material FOB TownsviUe from the warehouse indudirig all assodated costs thereto. in which case, the last paragraph of the "Final Payment" Payment/Firiandrig dause shall apply The Sener, at the request of the Buyer, shall orgariize delivery of the Material to an alternative destination and any costs above FOB Townsville shall be for the Buyer's account. The parties agree to cooperate on the provision of logistical services such that overall freight costs are In^nitzed. PRICE: Official LlvlE cash settlement quotation for nickel averaged over the Quotational Period (defined below) less 3.5% discount, provided that, such discount shall at a minimum be Us0350 per ton of compacts. QUOTAnONAL Second month after month of delivery. PERIOD: PAYMENT/ All payments shall be made in U. S. Dollars. FINANCING: Advance Pa ent Provisional purchase price shall be based on a provisional quotational period of "month prior to month of availability". 003 GLENcoRE Page 4 Contract No. 227-co-15539-P ATL advance payment of up to 93% of the provisional purchase price shall be paid once Material is available ex refinery gate and upon the Seiner's presentation to the Buyer of foUowirig fax copy documents by telegraphic tramsfer into Seller's nominated bank account with latest value date 3 (tiree) working days: (a) Seller's original conu, ,erdalinvoice; (b) Seller's certificate of analysis; (c) Seller's weight certificate; (d) Seller's pad ^^ .^^ ^8 ^-i! . ^. . . . . ., , . , . . , , . . -.. -I;, ^::: . ,, a ^., . . . . ,^\^ a , \ I', , . >. ^ ..,!^ , .: ::i^ .:..^: '^I" .^., , R . . .^ \ ~. " GLENCOR^ INTERNATIONAL AC mine an re A UNIFORM TERMS AND CONDITIONS Introduction I. These terms and conditions of purchase ("Coltditio"s"), the attached Clericore kiten^tional AC Contract No. 227-09-15539-P dated 4'' August 2009 ("P, ,7th"se Cointr"of'), Armexore B ("TVp, t"I Mater, '"I Specific"tio"s") and Annexore C ("Ass, ,y Procedt, res for Q"earsl",,, I Nickel Coinp"ats") constitute the entire agreemerit (' 'Agree, "a, t") between the Seller and the Buyer with respect to the sale and purchase of the Material described in the Purchase Contract. The Seller corLfiriris and acknowledges that by signing the Purchase Contract, it has accepted this Agreement and agrees to be legally bound by this Agreeinant. in the event of inconsistency between the Conditions and the Purchase Contract, the latter shall prevail. Title & Risk 4. Title in the Materials shall pass to the Buyer upon first paymerit. Risk in the Materials shall pass to the Buyer in accordance with INCOTERMS 2000. Unless otherwise specified hereiri INCOTERMS 2000 and/or any amendments or replacement thereof shall apply. Quality Claims: 5. Subject to dause 6, the Seller's or its no, Lullee's assays shall be final and binding on the parties, provided that, the Seiner adheres to assay procedures set out in Amiexure C. Notwit1'1starithng clause 5, quality clad, T's, if any, shall be notified to the Seller in withg windn 60 (sixty) calendar days from the arrival of carrying vessel at discharge port and completion of discharge of the Material. If a quality claim has been lodged by the Buyer wift'tin the foiefrarne as set out above, the Seller has the right to request inspection, sinnphng and assaying of the Material in question. Such operation shall be carried out by a inutuaUy acceptable and internationally reco^Iized surveyor. Findings established by such procedure shall be binding as final and binding on the parties for deteLLLit. Iation of the actual quality of Material delivered. Costs thereof shall be borne by the losing party. Baarermattstrasse 3 . P. 0. Box 777 . CH-6341 Baar . Switzerland Telephone +4/4/7092000 . Telefax +4141 7093000 008 GLENCOR^ Page 2 Weigl, t Discrepandes: 7. Subject to clause 8, the Seller's or its nominee's deterInitiation of weig}'It shall be final and binding on the parties, provided that, the Sener adheres to wei^trig procedures using independently certified and canbrated scales. Noh"'ithstandirig clause 7, the Buyer shall have the rig}'It to make weight claims by notifying the Seller in writing within 10 (ten) calendar days from the arrival of carrying vessel at discharge port and completion of discharge of the Material, provided that the differonce between the weigl'Its deteLuit. .ed by each of the Seiner and the Buyer or their respective nouitiiees is greater than 0.3% of the weight detennined by the Seller for each individual lot. The Sener shall have the rigl. It to request reweighing of material in the preser, ce of his nominated represeritative. Such reweig}ling shall be carried out by a mutually acceptable and internationally recogriized surveyor. The weight established by such reweigl'ting shall be binding as final for both parties for determination of the actual weigl'It of Material delivered. Costs thereof shaU be borne by the party whose determination of the weight is farthest from the weigl'It established by such rewei^ling or, if the weight established by such reweigldrig is nitd-way between the two, the costs shall be borne equally by the parties. Limitation of Liability: 9. in no event shall the Seller be liable for any indirect, sperial, indderital or consequential damages (including loss of profits) resulting from the Seller's perforrnance or nonperformance of its obligations hereunder or any third party's purchase, use, possession or disposal of any of the Material, ISPS Code 10. The Buyer warrants that any vessel which it nominates in connection with this Agreernent complies with the requirements of the ISPS Code and/or the Us Maritime Transportation Security Act 2002 ("MTSA") (as applicable). The Seller warrants that any port at which the goods sold under this Agreement are or are intended to be loaded complies with the requirements of the ISPS Code and/or MTSA (as applicable). The Buyer shall be responsible for any and all cost, expertse, loss and damage arising out of or in connection with the fallure of the vessel or its owners or charterers to comply with the requiren'lents of the ISPS Code and/or MTSA (as applicable) and any time thereby lost shall not count as used layimie or time on demurrage. The Seller shall be responsible for any and all cost, experise, loss and damage arising out of or in connection with any failure by the load port to comply with the requirements of the ISPS Code and/or MTSA (as applicable) and any time thereby lost shall count as used laytime or time on demurrage. Force Majeure 11. Neither party to nits contract shall be liable for any delay in perfoLiiit, ,g or failure to perfonn its obligations (except for delay or failure to pay money when due) due to events of Force Majeure including but not limited to war, blockade, revolution, riot, insurrection, dvil co, lullotion, strike, lockout, explosion, fire, flood, storm, tempest, earthquake, 009 GLENcoRE Page 3 regulations or orders, including but not hintted to prohibition of export or import and/ or any other cause or causes beyond reasonable control of the Seller or the Buyer and/or Buyer's receiver whether or not similar to the causes anumerated above. Failure to deliver or to accept delivery in whole or in part because of the occorronce of an event of Force Majeure shall not constitute a default hereunder or subject either party to liability for any resulting loss or damage. Upon the ocLLLLLance of any event of Force Majeure, the party affected by the event of Force Majeure shall promptly notify the other party hereto in writing of such event and shall specify in reasonable detail the facts constituting such everit of Force Majeure. Where such notice is not given within the tone required, Force Majeure shall not justify the non-fixffilvnerit of any obligations under flits contract. 13. Both parties agee to use their respective reasonable efforts to cure any everit of Force Majeure to the extent that it is reasonably possible to do so, it being understood that the settlement of strikes, lockouts, and any other industrial disputes shall be within the sole discretion of the party asserting Force Majeure. 14. in the event of Force Majeure preveriting the Sener from deriveting the material, or preventing the Buyer from accepting such material, respectively, deliveries shaU be cosper, ded for the duration of such Force Majeure event but if such Force Majeure shall last more than 90 (ninety) calendar days, the tonnage involved may be cancelled with inariediate effect by the party not having declared Force Majeure by written notice to the other party. Assigrm, ent 15. Neither party shall assigri this Agreemer, t or any rigl'Its or delegate any duties under tins Agreement, in whole or in parr, without the prior writterL conserit of the other party such conserit sham not be umeasonably withheld; save that the Buyer or Seller may at any time grant scourity over or assign all or any of its rigl'Its under tilts Agrearient or any doomnerit entered into punsuant to the Agr. eement: (a) to a than dai institution; and/or (b) to any affiliate of the Buyer; and/or (c) for the purpose of or in connection with the (re-)financing (whether in whole or in part) by the Buyer or Seller of tits Agreemerit. Material Adverse 01ange 16. If one party ("MAC Party') becomes msolverit or is adjudged bankrupt or a receiver or admitiistrator is appointed over it or any of its assets, or insolvency or barnoruptcy or sinnlar proceedings are cor, un. onced in relation to it or its assets, or in the event of circumstances which, in the reasonable opimon of the other party has, or may have a material adverse effect on the MAC Party's ability to perform its obligations under tilts Agreement, the other party may upon writteri notice to the MAC Party thereof (a) teLudL, ate flits Agreemerit, or (b) suspend or defer performance of this Agreement (including cosperiding or deferring provisional payments, as to shipment(s) in default and/or as to any future shipmerit; and the MAC Party shall become liable for any and all 0.0 GLEl^^R^ Page 4 cost, expanse, loss and damage whatsoever inLULLed by the other party due to the MAC Party's exerdse of its right hereunder. Any exercise by the other party of its rights under this clause shaM be without prejudice to any other rights or remedies available to it under this Agreement or at law. Representation and Warranties 17. Each party represents and warrants to other that: (a) it has full power and authority to anter into, perform and observe its obligations and duties under tilts Agreemerit; (b) this Agreemerit and the tr. artsactions contemplated hereunder do not contravene its constituent documents or any law or obligation by which it is bound or to which any of its assets are subject or any agreemerit to which it is a party or cause a hinttation on its powers or the powers of its directors to be exceeded; and (c) its obligations under flits Agreemer, t are valid and binding and are eriforceable agairist it in accordance with their terms subject to laws generally affecting creditors' rigl'Its and to principles of equity. Sevenbnity 18. If a provision becomes orientorceable, it shall be read down and/or severed so as to be valid and adorceable. Amendment 19. No amendment of this Agreemerit shall be effective unless made in writing by the parties. Confidentiality 20. The conterits of this Agreemerit are confider, tial. Each party and its employees, consultants and contractors shaU hold in confiderice any copies of this Agreement and all documents and other forms of communications required to be provided hereunder. Nohvitl'standing the foregoing, each party may disclose tilts Agreement to its professional advisers, or in the course of legal proceedings where such disclosure is required by law, or to prospective lenders to such party, or to prospective transferees and assignees who, in any case have agreed to be bound by these confidentiality provisions. in the case of disclosures required by the regulations of any stock eXchange, the prior written consent of the other party shall be required, such consent not to be unreasonably withheld or delayed. Notices 21. Any notice given by one party to the other under this Agreemerit shall be in writing and shall be amt by registered mall or courier or fax and shall be directed at the address and to the attention of the persons advised by the other party. ATiy such notice shaU be effective (a) in the case of registered mall or courier at the time of first service (pursuant to the delivery receipt), or (b) in the case of fax at the time of transmission or on the next 0.1 GLENcoRE Page 5 business day if time of transihission has been outside nomial business hours at the place of receipt. A party shall notify a change of address to the other party. Governing Law & Dispute Resolution 22. This Agreement, including the arbitration clause, shall be governed by, interpreted and constt. ued in accordance with the English laws excluding the United Nations Converition on Contracts for the international Sales of Goods of April 11,1980 (CISC). any dispute, controversy or clann arising out of or in relation to tilts Agreement shall be finally resolved by arbitration in accordance with the London Court of international Arbitration (which rules are deemed to be incorporated by referonce into flits clause). The seat of arbitration shall be London. The arbitral proceedings shall be conducted in the ETiglish language. NO Riglits under Contracts (Rigl, ts of Third Parties) Act 1999 23. A person who is not party to this Agreement shall have no rigl'It under the Contracts (Rights of Third Parties) Act 1999 to anforce any of its tenns and conditions. 0.2 GLENCOR^ INTERNATIONAL AC Armexure B TYPICAL MATERIAL SPECIFICATIONS QUEENSLAND NICKEL COMPACTS ANALYSIS T ical* ^urn^jar^urn Ni 99.0% 98.5% rimntnum S 0.05% 0.1% madrnum C 0.02% 0.1% maximum Ca 0.03% O. I% madnum Co 0.05% 0.1% maximium Si 0.05% 0.5% maximum M 0.05% 0.1% inarirnum Mri 0.06% 0.1% maximium Fe 0.05% 0.2% marunum A1 0.03% 0.2% maximum Zi'I 0.02% 0.1% inarimum P 0,002% 0,005% maximum Cu 0.02% 0.05% maxirnum *A minimum of 75% of production shall meet tilts typical specification, lot size is nominally 18 metric tonnes of Material. Baarermattstrasse 3 . P. 0. Box 777 . CH-6341 Baar . Switzerland Telephone +4141 7092000 . Telefax +41 41 7093000 0.3 GLENCOR^: INTERNATIONAL AC Annexure C ASSAY PROCEDURES FOR QUEENSLAND NICKEL COMPACTS The 9', Ni (by difference) is calculated using the foUowing fonnula. %Ni = 100 - (sum of traces), Where traces = 0, C, S, Co, Fe, Mg, Ca, Cu, Zi'I, CT, NIIi, Si, A1 and P Several different analytical methods are required to obtain the total impurities present. The methods of analysis to be used are: . Oxygen (O by Lec0@ 03cygen Deter urn. ator . Carbon (C) and Sulphur (S) by Leco@ Carbon and SUIfun Dateu, unator . Minor trace elemerits (Co, Fe, Mg, Ca, Cu, Zi'I, CT, ^^fit, Si, A1, P) by acid digest and analysis by InductiveIy Coupled Plasma (ICP). (Queer, slamd Nichel Laboratory has EonEC17205 and is compliant under the Yabulu Refinery ISO9001:2008 accreditation) Baarermatlstrasse 3 . P. 0. Box 777 . CH-6341 Baar . Switzerland Telephone +41 41 7092000 . Telefax +4141 7093000 014 "DW. , 9" Minutes of Meeting of MEMBERS of QNI METALS PTY LTD ACN 066656175 (the Company) Held at 380 Queen Street, Brisbane, Queensland at 12.45pm on I September 20.6 Present: Nickel Resources Pty Ltd represented by Clive Palmer - Director Nickel House Pty Ltd represented by Clive Palmer - Director Nickel Consolidated Pty Ltd represented by Clive Palmer - Director Jonathan Shaw (by invitation) Daren Wolfe (by invitation) Apologies: Clive Mensink (Company Secretary of Nickel Resources Pty Ltd, Nickel House Pty Ltd, and Nickel Consolidated Pty Ltd) NOTICE OF MEETING IT WAS RESOLVED that adequate notice of the meeting had been given and received. RATIFY MINUTES IT WAS RESOLVED to ratify all actions taken by directors and & ACTIONS officers of the Company on behalf of the Company during the period from 31 July 2009 to I September 2016. IT WAS RESOLVED to ratify all minutes of Joint Venture meetings and all actions completed by them on behalf of the Company during the period from 31 July 2009 to I September 2016 nunc pro tunc There being no further business the meeting closed at 12.49pm , Clive P mer I Date 08/09/16 015 "DW-20" Minutes of Meeting of MEMBERS of QNI RESOURCES PTY LTD ACN 054,1792, (the Company) Held at 380 Queen Street, Brisbane, Queensland at 12.50pm on I September 20.6 Present: Nickel Resources Pty Ltd represented by Clive Palmer - Director Nickel House Pty Ltd represented by Clive Palmer - Director Nickel Consolidated Pty Ltd represented by Clive Palmer - Director Jonathan Shaw (by invitation) Daren Wolfe (by invitation) Apologies: NOTICE OF MEETING Clive Mensink (Company Secretary of Nickel Resources Pty Ltd, Nickel House Pty Ltd, and Nickel Consolidated Pty Ltd) IT WAS RESOLVED that adequate notice of the meeting had been given and received. RATIFY MINUTES IT WAS RESOLVED to ratify all actions taken by directors and officers of the Company on behalf of the Company during the period & ACTIONS from 31 July 2009 to I September 2016 IT WAS RESOLVED to ratify all minutes of Joint Venture meetings and all actions completed by them on behalf of the Company during the period from 31 July 2009 to I September 2046 nunc pro tunc. There being no further business the meeting closed at 12.54pm Clive Palmer Date : 08/09/16 016 "DW-21" Minutes of Meeting of MEMBERS of QNI METALS PTY LTD ACN 066656,75 (the Company) Held at L, 7,240 QUEEN STREET, BRISBANE, QLD at 4:07pm on 21 November 20.7 Present: . NICKEL CONSOLIDATED PTY LTD (shareholding : 75,839,809 shares), represented by director Clive Palmer and acting with powers granted under the constitution by the Board of Directors of Nickel Consolidated Pty Ltd NICKEL PROESSING PTY LTD (shareholding: 75,839,809 shares), represented by director Clive Palmer and acting with powers granted under the constitution by the Board of Directors of Nickel Processing Pry Ltd NICKEL HOUSE PTY LTD (shareholding: 3,095,502 shares), represented by director Clive Palmer and acting with powers granted under the constitution by the Board of Directors of Nickel House Pty Ltd . Michael Mashayanyika attended as an observer by invitation Apologies: None Chairman: Clive Palmer was appointed Chairman of the meeting. Resolutions: In respect of the period I July 2009 to I8 January 2016, it was resolved to approve and ratify all payments made by Queensland Nickel Pty Ltd as follows: a) as agent for the Company and or as a trustee of any trust Queensland Nickel Pty Ltd was a trustee and the Company was a beneficiary, including but riot limited to the following: I) 30/06/11 - 30/09/12 Styx Basin Joint Venture expenses totalling $8,761,835.73; 2) 31/07/11 - 04/01/16 Palmer Leisure Coolum expenses and working capital payments totalling $57,807,342.70; 3) 06/07/11 Palmer Leisure Coolum re CDLH acquisition $8,100,000.00; 4) 02/08/, I Purchase of shares in Palmer Leisure Australia by QNI Resources and QNI Metals for $40,000,000.00; 5) 05/03/12 -, 2103/12 Coolum Resort villa acquisitions $1,238,251.57; 6) 11 1091,2 Payment to Mr Palmer $500,000.00; 7) 11/09/12 Payment to Cold Mountain Stud $50,000.00; 8) 11/09/12 Payment to Waratah Coal $1,800,000.00; 9) 30/11/12 Payment to Waretah Coal $200,000.00; I0) 30/11/12 Payment to Cold Mountain Stud $50,000.00; 11) 30/11/12 Bora BOB net payment $9,251,459.76; 12) 30/11/12 Payment to Mr Palmer $14,380,212.83; 13) 30/11/12 Payment to Zhenghong Zhang $4,500,000.00; 14) 30/11/12 Payment to Mr Sokolov $7,669,446.84; 15) 03/12/12 Payment to Ms Bednova $959,727.00; 017 I6) 09/09/, 2 Mr Palmer's personal expenses $37,039.34; 17) 01/04/14 Palmer Sea Reef payment $300,000.00; 18) 14/04/14 Payment to Mr Palmer $600,000.00; 19) 01/06/14 - 31/01/16 Mineralogy payments $16,425,535.54; 20) 28/07/14 Deed of Financial Assistance with Mr Fenguson $300,000.00; 21) 19/02/15 Palmer Leisure Australia payment $375,000.00; 22) 23/03/, 5 Mercedes Benz payment $77,800.00; 23) 13/05/15 Cart Provider goff carts $324,999.68; 24) 30/06/, 5 Fairway Coal $401,231.00; 25) 01/11/13 Sale of Avica Resort to Mr Palmer for $7,900,000.00; 26) 04/1 0113 Sale of vintage cars from QNI Resources to Mr Palmer for $5,007,000.00; 27) 30/06/14 Tripartite agreement between Mineralogy Pty Ltd, Queensland Nickel Pty Ltd and Clive Palmer to offset loans payable to Clive Palmer and payable from Mineralogy for $20,000,000.00; and by all payments made at the direction of Cllve F Palmer. It was resolved to ratify all directions given by Cllve F Palner to Queensland Nickel Ply Ltd given in whatever capacity in the period I July 2009 to 30 March 2016. It was resolved to ratify and approve all actions, payments, and adjvities of Clive Palmer for the period I July 2009 to the date hereof It was resolved, ratified, and confirmed that Clive F Palmer has and had full authority to act for and on the Company's behalf at all times and for all purposes from I July 2009 to the date hereof. There being no further business the meeting was declared closed. Signed as a true and correct record of meeting. ........................ Clive a mer - Director 0.8 "DW-22" Minutes of Meeting of MEMBERS of QNI RESOURCES PTY LTD ACN 054 ,, 792, ithe Company) Held at L, 7,240 QUEEN STREET, BRISBANE, QLD at 4:09pm on 21 November 2017 Present: . NICKEL CONSOLIDATED PTY LTD (shareholding: 75,839,809 shares), represented by director Clive Palmer and adjng with powers granted under the constitution by the Board of Directors of Nickel Consolidated Pty Ltd NICKEL PROESSING PTY LTD (shareholding: 75,839,809 shares), represented by director Clive Palmer and acting with powers granted under the constitution by the Board of Directors of Nickel Processing Pty Ltd NICKEL HOUSE PTY LTD (shareholding: 3,095,502 shares), represented by director Clive Palmer and acting with powers granted under the constitution by the Board of Directors of Nickel House Pty Ltd . Michael Mashayanyika attended as an observer by invitation Apologies: None Chairman: Clive Palmer was appointed Chairman of the meeting. Resolutions: In respect of the period I July 2009 to 18 January 2016, it was resolved to approve and ratiry all payments made by Queensland Nickel Pty Ltd as follows: a) as agent for the Company and or as a trustee of any trust Queensland Nickel Pty Ltd was a trustee and the Company was a beneficiary, including but riot limited to the following: I ) 30/06/I I - 30/09/, 2 Styx Basin Joint Venture expenses totalling $8,761,835.73; 2) 31/07/11 - 04/01/16 Palmer Leisure Coolum expenses and working capital payments totalling $57,807,342.70; 3) 06/07/11 Palmer Leisure Coolum re CDLH acquisition $8,100,000.00; 4) 02/08/, I Purchase of shares in Palmer Leisure Australia by ONI Resources and QNI Metals for $40,000,000.00; 5) 05/03/12 - 12/03/12 Coolum Resort villa acquisitions $1,238,251.57; 6) 11/09/12 Payment to Mr Palmer $500,000.00; 7) 11/09/12 Payment to Cold Mountain Stud $50,000.00; 8) 11/09/12 Payment to Waratah Coal $1,800,000.00; 9) 30/11/12 Payment to Waretah Coal $200,000.00; 10) 30/11/12 Payment to Cold Mountain Stud $50,000.00; 11) 30/11/12 Bora Bora resort net payment $9,251,459.76; 12) 30/11/12 Payment to Mr Palmer $14,380,212.83; 13) 30/11/12 Payment to Zfienghong Zhang $4,500,000.00; 14) 30/1 1/12 Payment to Mr Sotolov $7,669,446.84; 0.9 15) 03/12/12 Payment to Ms Bednova $959,727.00; 16) 09/09/12 Mr Palmer's personal expenses $37,039.34; 17) 01/04/14 Palmer Sea Reef payment $300,000.00; 18) I 4104/14 Payment to Mr Palmer $600,000.00; 19) 01/06/14 - 31/01/16 Mineralogy payments $16,425,535.54; 20) 28/07/14 Deed of Financial Assistance with Mr Fenguson $300,000.00; 21) I9102/15 Palmer Leisure Australia payment $375,000.00; 22) 23/03/, 5 Mercedes Benz payment $77,800.00; 23) 13/05/, 5 Cart Provider goff carts $324,999.68; 24) 30/06/, 5 Fairway Coal $401,231.00; 25) 01/11/13 Sale of Avica Resort to Mr Palmer for $7,900,000.00; 26) 04/1 0113 Sale of vintage cars from QNI Resources to Mr Palmer for $5,007,000.00; 27) 30/06/14 Tripartite agreement between Mineralogy Pty Ltd, Queensland Nickel Pty Ltd and Clive Palmer to offset loans payable to Clive Palmer and payable from Mineralogy for $20,000,000.00; and by all payments made at the direction of Clive F Palmer It was resolved to ratify all directions given by Cmve F Palmer to Queensland Nickel Pty Ltd given in whatever capacity in the period I July 2009 to 30 March 2016. It was resolved to ratify and approve all actions, payments, and activities of Clive Palmer for the period I July 2009 to the date hereof. It was resolved, ratified, and confirmed that Clive F Palmer has and had full authority to act for and on the Company's behalf at all times and for all purposes from I July 2009 to the date hereof. There being no further business the meeting was declared closed. Signed as a true and correct record of meeting. Cliv a Director 020