STATEMENT SENT TO FOUR CORNERS

FROM MIKE HUGHES, WESTSIDE CORPORATION

31 May 2017

Thank you for your advice regarding your up-coming program.

In responding to your questions I've endeavoured to provide some brief context along with specifics
to the numbered questions noted.

Landbridge is a privately owned, commercially operated company based in Shandong Province in

China.

Our investment in Darwin Port was by way of a public tender process conducted by officials on
behalf of the Northern Territory Government and with the full knowledge of Commonwealth
regulators. In fact, the purchase went through the FIRB process, including alI Defence
considerations, despite the fact that the Territory Government had no obligation to take it to FIRB.
The intention to lease the Darwin Port was announced by the Northern Territory Government as
being due, at least in part, to the fact that neither the Territory nor the Commonwealth were able to
make significant investment in upgrading the port and supporting infrastructure. Landbridge has
already made investments in upgrading the facilities and plans significant expansion over the next 5
years.

The commercial case for investment in Darwin Port by Landbridge depends on the growth in trade
between Darwin and Asia, particularly China, which is already Australia's largest trading partner.
This growth in trade is fundamental to the development of Northern Australia and, as such, is
supported by the Northern Territory and Federal Governments. To better understand and promote
Australia-Asia trade, Landbridge retained as an adviser, former Australian Trade Minister, Hon.
Andrew Robb, who was first approached following his retirement from parliament(1). Mr Robb's
appointment was not announced in Australia mainly because Landbridge has no obligation or
reason to announce such an appointment and also because he was not working for Landbridge on
domestic Australia related issues (2). Rather, Mr Robb's consultancy was to use his deep
knowledge, extensive contacts and standing across Asia to advise and assist Landbridge overseas
to promote trade with Australia, particularly through Darwin(3). Landbridge fully understands and
respects the
Ministerial Code of Conduct. In Asia, including China, Mr Robb is held in high regard and his
contacts and insights are highly valued. It is not our practice to announce the appointment of any
consultants nor to disclose the terms of commercial in confidence agreements.(4).

Landbridge is investigating a range of commercial funding options for Darwin Port including both
domestic Australian and Chinese banks. The Northern Territory Government is fully aware of and
supportive of these discussions. As you are aware, Landbridge holds a 99-year lease of the port
with the ultimate ownership resting with the Territory Government. In general terms the various
agreements between the Territory Government and Landbridge ensure that in the event of a default
on a loan secured against the port, control of the lease would revert to the NT government or would
be sold to another party who would need to satisfy NT Government requirements and, if foreign,
meet FIRB requirements. (5)

I am grateful for your advice on the program and the opportunity to correct any misapprehensions
you may have regarding Landbridge's lease of the Port of Darwin.

Yours sincerely,

Mike Hughes
Managing Director
Westside Corporation Pty Ltd