Sullivan & Ors Litigation Update

7 July 2016

Updates regarding the Sullivan & Ors appeal are provided to unitholders interested in following the proceedings. Please note that many of the initial court hearings are administrative processes in which the court makes orders in respect to (but not limited by) admissions, filing of affidavits, the inspection of documents, and other particulars. These directions hearings are not when the decision of the appeal is made. It is understood that orders have been made for preparation of the appeal hearing, which is likely to be allocated in November.

The directions hearing that occurred on 21 June 2016 adjourned the second notice to produce and ordered that a clone of the original Hard Disk Drive of City Pacific is to be produced in answer to the third notice to produce. Additionally, the Judgment from the final orders entered on the 4 March 2016 was stayed, pending the hearing and determination of the appeal and certain conditions being met. These conditions include, but not limited by:

1) take all available steps to expedite the hearing of the appeal; and

2) until determination of the appeal, each of the defendants will not dispose of, encumber, or otherwise deal with any of his assets other than:

a) in the ordinary course of business;

b) for the purpose of ordinary and reasonable living expenses; or

c) for the purpose of the prosecution of the appeal;

Further to the above, the Sullivan Parties are to pay $144,000 by way of security for Trilogy Fund’s costs for the appeal as part of the security of costs. The Sullivan Parties also filed and served an Amended Notice of Appeal on 17 June 2016 incorporating an application to adduce further evidence.

We will provide a further update when further information becomes available, or when the date for the determination of the appeal hearing is confirmed and announced. Should you have any enquiries, please call Balmain Trilogy Investor Relations on 1800 194 500 or email investorrelations@trilogyfunds.com.au