The Directors’ fees for the 2014 fiscal year are:  Base fees  Amount  Board Service  Chairman  A$132,500 Non-executive Director  A$100,000 Committee Service  Audit and Risk Management Committee Chair  A$29,500  Remuneration and Nominations Committee Chair  A$20,250  Reserves Committee Chair  A$17,500  Member of the Audit and Risk Management or Remuneration and Nominations  Committee  A$11,000  Member of the Reserves Committee  A$8,250  (Note: The above amounts are paid to the Australian non-executive directors in Australian dollars. For the US based non- executive director the same nominal amounts were paid in US dollars.)  During 2013, on the recommendation of the Managing Director, an additional amount of A$85,000 was paid to each of the three  Australian non-executive directors for the additional work carried out and additional time required during the second half of 2012  and the first quarter of 2013 related to the South Antelope sale, Wells Fargo Credit Facility, Wattenberg acquisition, and the  Texon Scheme of Arrangement. Also during 2013, an amount of US$80,000 was paid to the US-based non-executive director  upon joining the Board of Directors as an incentive to attract high calibre talent to the Board.  The Company received more than 96% of ‘yes’ votes on its remuneration report for the financial year ended 31 December 2013. The Committee values feedback from the shareholders and engages in conversations with key shareholders and their advisors on  a regular basis.  H. Voting and Comments made at the Company’s Year Ended 31 December 2013 Annual General Meeting  I. Employment Contracts  Eric McCrady  -  Managing Director and CEO The Managing Director’s employment contract has a three year term commencing 1 January 2014 with base remuneration of  US$370,000 per year which is reviewed annually by the Remuneration and Nominations Committee. He is eligible to participate  in the Incentive Compensation Plan. The Managing Director is entitled to the specified remuneration and benefits through the  term of the agreement. The Company may terminate the Managing Director’s employment at any time for good cause (for  example, material breach of contract, gross negligence) without notice and the Managing Director may give 90 days’ notice to  terminate the employment contract; both of which result in the Managing Director receiving pay through the period of services  performed. In the instance of a change in control of the Company, at the instigation of the Board of Directors, if the Managing Director’s title  and duties are substantially reduced then the Managing Director, within two months of such reduction in status, may provide  two weeks written notice to the Company as being terminated by the Company other than for good cause and will receive his  base salary through the end of the contract term.  At the date of this report, no other directors nor other key management personnel have employment contracts.  - 40 - 