Further lock-up agreement entered into by New Dawn Energy

Press Release – L and M Energy

New Dawn Energy Limited entered into a lock-up agreement on 26 October 2012 in respect of a further 5.44% shareholding in L&M Energy Limited held beneficially by Runa Investments Limited.Further lock-up agreement entered into by New Dawn Energy

29 October 2012 – New Dawn Energy Limited entered into a lock-up agreement on 26 October 2012 in respect of a further 5.44% shareholding in L&M Energy Limited held beneficially by Runa Investments Limited. This follows New Dawn Energy Limited, a company owned by L&M Energy Limited Chairman Geoff Loudon, providing a Takeover Notice on 22 October 2012 in respect of a cash offer for all the shares and options in L&M Energy.

Following entry into the lock-up agreement with Runa Investments and including Mr Loudon’s own shareholding of 22.93%, shareholders owning a total of 77.16% of L&M Energy’s shares have now entered into lock-up agreements to accept the offer in respect of their shares. Previously shareholders owning a total of 71.72% of L&M Energy’s shares had entered into lock-up agreements with New Dawn Energy.

Commenting on today’s update, Mr Loudon said: “The high level of early acceptances reflects that this transaction is the right thing to do for the shareholders of L&M Energy.”

Mr Loudon’s offer price of AUD$0.06 in cash per share represents a 43% premium to the closing share price for the shares on the ASX on 17 October 2012. It is also at a premium to the volume weighted average price of the shares on the ASX over the one, two and three month periods prior to 17 October 2012 of 40%, 40% and 23% respectively.

The consideration for the options ranges from AUD$0.000 to AUD$0.0599 in cash per option, depending upon the date and terms of issue of each option.

New Dawn Energy’s offer is subject to the terms and conditions set out in the Takeover Notice provided on 22 October 2012. New Dawn Energy has the discretion to waive these conditions, including the minimum 90% acceptance condition.

About L&M Energy
L&M Energy Limited is a Wellington-based oil and gas exploration company that is listed on both the New Zealand and Australian stock exchanges. The company (together with its wholly owned subsidiary L&M Coal Seam Gas Limited) holds interests in a number of coal and petroleum exploration and prospecting permits throughout New Zealand, including in Taranaki, Waikato and the South Island.

ENDS

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