The Status of Your Fund.

The Federal Court proceedings were concluded late this morning on Tuesday, 14 July 2009. The Honourable Justice Dowsett has reserved his judgment which he has indicated he will endeavour to release either later this week or early next week.

The Court proceedings themselves were significantly abridged following City Pacific's withdrawal of three areas of complaint. Specifically, City Pacific were no longer:

alleging misleading conduct by BalmainTrilogy;
contesting the vote; nor,
contesting the appointment of Computershare as proxy holder and returning officer.

The sole area of complaint was whether or not the single resolution to remove City Pacific and appoint Trilogy (as responsible entity) as carried at the meeting in fact should have been presented as two separate resolutions.

We respectfully ask that you continue to remain patient for the next few days until the Honourable Court's decision is made public. Should the resolution of the members be upheld BalmainTrilogy is ready willing and able to commence its responsibilities to you.