INSTRUCTIONS - Realview

NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2009Note 25 Reserves and accumulated losses cont.(d) Share-based payments reserveThe share-based payments reserve is used to recognise the fair value of options issued to executives and employees butnot exercised.(e) Convertible note liability reserveThe convertible note liability reserve represents an IFRS adjustment on the conversion of the RCF convertible note in 2006.Note 26 Remuneration of auditorsDuring the year the following fees were paid or payable for services provided by the auditor of the parent entity, its relatedpractices and non-related audit firms:consolidatedparent Entity2009 2008 2009 2008$’000 $’000 $’000 $’000(a) Assurance servicesAudit servicesKPMG Australian firmAudit and review of financial reports 220 185 220 185Other audit services – 20 – 20Total remuneration for audit services 220 205 220 205(b) Non-audit servicesKPMG Australian firmDue diligence on prospectus issue – 130 – 130Total remuneration for non-audit services – 130 – 130Note 27 Contingencies(a) Contingent liabilitiesThe Company and consolidated entity have a contingent liability at 30 June 2009 in respect of the following legal claim:KingstreamOn 2 July 2002, Kingstream Steel Limited (now Midwest Corporation Limited) (“Kingstream”) commenced proceedingsin the Supreme Court of Western Australia against the Company and its 100% owned subsidiary, Zygot Ltd (“Zygot”)(together, “St Barbara”). In early 2005, Kingstream obtained the leave of the Court to substitute the trustees of KingstreamSteel’s Creditors Trust as plaintiffs in these proceedings, namely Bryan Kevin Hughes and Vincent Anthony Smith. Mr Smithresigned as a trustee and Mr Hughes (“Hughes”) has been the sole plaintiff since 30 January 2008.Hughes’s claim against St Barbara arose from the withdrawal by Zygot of three mining lease applications (“MLAs”) inSeptember 2001. Hughes alleged that these applications were part of the subject matter of an Option Deed between theSt Barbara and Kingstream dated 26 March 1997 as supplemented by a Deed dated 20 January 1998 and a letter dated29 January 1999 from St Barbara’s lawyers to Kingstream. Kingstream exercised the option in February 1999.Following amendments to the statement of claim in October 2008, Hughes sought damages from St Barbara relying uponcauses of action based on rectification of the Supplemental Deed, allegations of breach of contract, breach of duty of care,estoppel and unilateral mistake. St Barbara defended the proceedings.Hughes produced various reports by experts who purported to quantify the loss that was claimed. The reports disclosedopinions about the value of the MLAs at the time of their withdrawal of between $250,000 and $4,000,000. They alsodisclosed a range of opinions about the claimed value of the MLAs to Kingstream ranging from $13,070,000 in November2005 to $980,000,000 in November 2008.None of the current Directors of St Barbara were directors of the Company or Zygot at the time the relevant activities took place.stbarbara.com.au – Annual Report 2009: 83