Examination of Phil Sullivan

9 February 2012

As part of the Pacific First Mortgage Fund (the Fund) investigation into the examinable affairs of City Pacific Limited (receivers & managers appointed) (in liquidation), Mr Philip Sullivan appeared in the Supreme Court of NSW on 2 and 3 February 2012.

These examination hearings allowed Mr Tony Martin S.C., appearing on behalf of the Fund and instructed by Maurice Blackburn, to question Mr Sullivan in relation to City Pacific Limited and the City Pacific First Mortgage Fund. In particular answers were sought in respect of Mr Sullivan’s knowledge of the Marina Cove, SP Marina and Blackbean transactions entered into during the period when City Pacific Limited was the responsible entity of the Fund. Mr Sullivan was also examined in relation to his personal financial position.

As at 2 February, Mr Sullivan had failed to fully comply with a production order served on 20 January 2012, first returnable on 30 January 2012, requiring production of documents to the Supreme Court of NSW relating to Mr Sullivan’s financial position. Mr Sullivan has accepted the terms of the production order and produced some documents in answer to it but has not, as yet, complied with that order. As a result, the production order has been further adjourned to 24 February 2012. Additionally, on 3 February 2012 the Supreme Court of NSW ordered that any further extension of time that Mr Sullivan requests for compliance with the production order is to be supported by an affidavit to be served 7 days prior to 24 February 2012.

At the close of the hearing on 3 February 2012, the examination of Mr Sullivan was ‘stood over’ generally, allowing the Fund a period of six months in which it may elect to recall Mr Sullivan to attend Court to answer further questions under oath regarding the examinable affairs of City Pacific Limited, with 14 days’ notice to Mr Sullivan.

Further information regarding these examinations will be made available to Unitholders in due course. The next Court allocated hearing dates for examination are 19-21 March 2012.