SUPERIOR RESOURCES LIMITED — Governance Information 2007

Nov 7, 2007

SUPERIOR RESOURCES LIMITEDCORPORATEGOVERNANCE STATEMENT

This Corporate Governance Statement sets out the Company's current compliance with the ASX Corporate Governance Council's Principles of Good Corporate Governance and Best Practice Recommendations (Best Practice Recommendations).

The Board of the Company currently has in place a corporate governance policy which will be posted in a dedicated section on the Company's website at www.superiorresources.com.au

	BESTPRACTICE RECOMMENDATION	COMMENT
1.	Laolid fndatis fd orsihtnty souonormanagemeanveg
1.1	Foalid discloshefutiod theboardd thodelegd te to tatermseanncnsreserveanseont.manageme	f Se CThe BrdofDireriReLimited("th")istoroaecs ouporsourcesompanyiblefor thf the Cteresponse corporagovernance oompany
		The Brd:oa1.GuidenditothebusinndaffaioftheCbehalfs amonrsess arsompanyonCofthe'smbhothetable.toompanymeerswmy areaccoun2.Providndidarattrategescorpoe sy agunce.3.Revieiatlanndalbudgincludingallocatiofetswsappropre ps aannuon,ndital editresources acapxpenure4.Monitfincial perforsanormanceProd enhheC'stio5.tectss tutaananceompanyrepn.6.Enliaithlatd otheirendntssurescompnce wreguoryanr requme, aiskheCd ibusins to ttsmanages rompanyaness.rfo7.Apints theMingDirectondises hispoanagr aapprapermancee CDadaf th's affairsd theimlemionofthtot otatyy managemenompanyanpenendlicyisdelegd theMingDirendthiorrattrategateo tctocorpoe sy apoanagr ae senutiThe deletiooliisiewedlelly.att aexecves.gan pcyrevasnnuaThe Brdhablished thefollowingidelinethffectivstas toas eguo ensuree eetionddihaofitssibilitioperan ascrgeresponesBoardill adonddilosdeofndideliaithlel andt at topsce acocoucgucompnce wgawothobligatioleitimakehold. Thisill iludradticdtoateste ternsgerswnce pracesanfair dlinglatioforivaloylawrotctnteaws, consumer pecn,respeprcy, empme,tiol hlthd safel eloynitatidty,ntrtuoccupanaeaanequampmeoppoy,superannuonanvirolsntntrenonmeco

2.	Sttutheboardtoadd valurucree
2.1	Ajorityoftheboardshldbeindendt directomaoupeenrs.	The Brdrislet thdiiththajorityofthe Brdd theattoroacompesasreerecs we moaanChairn beinutidiThe Brdwill corise direwithtorctopersog non-execverecs.oamprsiate blend of qlificatindrtisThe Brdleetsattanappropruaons aexpee.oameasnthly.mo
		1.Onf thtive direshallbethe MingDirectoctoe oe execursanagr.
		2.The Brdshallina blend of eiseinntaertoacoxp:
		Actinndfincoung aance;o
		Marketinndlesg asa;o
		Miralloratiriedneexponexpence;ano
		CEO-levelrieexpence.o
		The Brdntliseutidid ttivtoroacurrey comprs oneexecverecanwonon-execuedirWheibletheBoarddekel revieofthetorrtaecs.repossuns an annuaw,rfoofthe Brdd theindividualdirndinehetors tpermanceoaanecs aexamiatix of skillimeffectivndibutiohes tntrn to tappropre mo ensuemaxumeness acof the Cult'sbusinress oompanyess.Newlyinteddiuiredd theiate indtiotortoattenapporecs arereqapproprucn.
2.2	The Chairpshldbeindendt directoersonouanpeenr	The ChairmMr. LLiis ativIt iheC'slicytzos tanawrencenon-execue.ompanypow,that the Chairmisalutiditotorensureanwaysa non-execverec
2.3	Tholef chairpd chief etivfficshldt brcid bthee rs oersonanxecue oerounoe exesesameyindividl.ua	The CEOMr. KHist the Chairm. ItistholioftheCtoenarveynoane pcyompany,that the CEOisr Chairmensurenevean
2.4	The brdshldtablishmitiomitteoaouesanonan come.	The Brdwholeristhe Nination CmiResibilititteoaasacompesomome.sponesinclude Brdsioellaluatiofdis'rfodtoroasuccesn as wasevonrecpermanceaniesetecompnc
		n CThe Ninatiomitteomome:-
		1.CondaliewofthbershipoftheBoardhavintsucanannureve memgfuf the Cardtotht andtureivededdrege presene percnes oompanyankendatisidd ariabeideredtetoatmas recommeons as conereppropconsa Brdetioameng
		2.Anallyineheindendf eh dires tstatuctonuexampeences oacr.
		Ovhealiewd a3.s tt perseeannurevanssessmenrogram
2.5	nfon "GuProvide iatiindicated iidetoRortingPrinciple2".rmonepon	e Cf eThwill pidedetails oh directoh as their skillrieompanyrovacr, sucs,expenced eiselevtheirsitionethwith andlanatiofertt totoganxpreanpoerexponany,defrothebectidatio2.12.22.32.4d 2.5rtustparesmpracerecommennsan,,,

to: integrity; and investigating reports of unethical practices. the Company. designated officer is precluded from trading. external advisers, where appropriate. of intended trading activity in Company shares. 3. Written confirmation or a copy of the contract note evidencing the share trading transaction must be provided to the Company Secretary within 4 business days of the transaction. October 2007 3 | Pag e

3. Promote ethical and responsible decision-making

equivalent) and any other key executives as to:

reports of unethical practices.

3.2 Disclose the policy concerning trading in company securities by directors, officers and employees.

3.1 Establish a code of conduct to guide the directors, the CEO (or equivalent), the CFO (or

(a) the practices necessary to maintain confidence in the company's integrity; and (b) the responsibility and accountability of individuals for reporting and investigating In accordance with the Corporations Act and the Company's Constitution, the directors must advise the Board on an on-going basis of any interests that might conflict with those of the Company. Where the Board believes that a conflict exists, the director concerned is not permitted to be present at the meeting when the relevant issue is considered and does not receive the relevant Board papers.

The code of conduct adopted by the Board promotes ethical and responsible decision-making and guides directors, key executives and designated officers as

• 1. the practices necessary to maintain confidence in the Company's
• 1. the responsibility and accountability of individuals for reporting and

The Board has approved and communicated The Trading Policy below regarding the trading of its securities by directors and employees. Company policy prohibits directors and employees from dealing in Company shares during the period commencing 30 days prior to the release of the Company's results, and at any other time during the year whilst in possession of price sensitive information.

1. The Corporations Act specifically prohibits a person from purchasing or selling shares where such person ( called "an insider") possesses information that is not generally available but, if the information were generally available, would have a material effect on the price of shares in

The law also prohibits a person from procuring others to trade when the

This prohibition extends to external advisers and designated officers who should be aware of the need to enforce confidentially against such

1. Designated officers must provide notification to the Company Secretary

3.2 Disclose the policy concerning trading in company securities by directors, officers and employees. (continued)

3.3 Provide the information indicated in "Guide to Reporting on Principle 3". The Company will explain any departures (if any) from the best practice

4. Safeguard integrity in financial reporting

4.1 Require the CEO (or equivalent) and the CFO (or equivalent) to state in writing to the board that the company's financial reports present a true and fair view, in all material respects, of the company's financial condition and operational results and are in accordance with relevant accounting standards.

• 1. A trading "black-out" will occur during the following times:
  • • 30 days prior to the release of the half-year and 30 June preliminary financial statements.
  • •30 days prior to any dividend announcement; and
  • • 30 days prior to any intending announcement which a reasonable person would expect to have a material effect on the price or value of the Company's shares.
• 1. The Chairperson may exercise his discretion to permit trading by designated officers in specific circumstances. Such circumstances include financial hardship or circumstances of a personal nature.
• 1. This Trading Policy applies to financial products issued or created over the Company shares by third parties.
• 1. This Trading Policy does not prohibit designated officers from entering into a transaction in associated products which operate to limit the economic risk of their shareholdings in the Company.
• 1. The Board recognises the benefits of equity participation by employees and directors and encourages employees and directors to acquire equity in the Company in the appropriate circumstances.

recommendations 3.1, 3.2 and 3.3 in its future annual reports

The CEO and the CFO (or equivalent) are required to make the following certifications to the Board:

• 1. That the Company's financial reports are complete and present a true and fair view, in all material respects, of the financial condition and operational results of the Company and are in accordance with the relevant accounting standards.
• 1. That the above statement is based on a sound system of risk management and internal compliance and control and which implements the policies adopted by the Board and that the Company's risk management and internal compliance and control is operating efficiently and effectively in all material respects.

4 Safeguard integrity in financial reporting (continued)

4.3 Structure the audit committee so that it consists of:

• (a) only non-executive directors;
• (b) a majority of independent directors;
• (c) an independent chairperson, who is not chairperson of the board; and
• (d) at least three members
• 4.4 The audit committee should have a formal charter.

4.2 The board should establish an audit committee. The Board has established an Audit Committee which operates under a charter approved by the Board. It is the Board's responsibility to ensure that an effective internal control framework exists within the entity. This includes internal controls to deal with both the effectiveness and efficiency of significant business processes such as the safeguarding of assets, maintenance of proper accounting records, the reliability of financial information and non-financial considerations such as the benchmarking of operational key performance indicators. The Audit Committee provides a forum for effective communication between the Board and the external auditor. The Audit Committee also provides the Board with additional assurance regarding the reliability of financial information for inclusion in the financial report.

The Audit Committee meets at least once a year with the auditors without the presence of any executive members. Because of the size of the Board, the audit committee comprises only two members (the two non-executive directors) and the chairman of the committee is not the chairman of the Board

The Board has established an Audit Committee which operates under the following charter approved by the Board.

• 1. The board as a whole is responsible for the accuracy and relevance of the financial statements. However, the Audit Committee provides an additional and more specialised oversight of the financial reporting process.
• 1. The Audit Committee shall, if possible, comprise a majority of nonexecutive directors and a majority of independent directors and an independent chairperson who is not the chairperson of the board. The Audit Committee shall consist of at least three members.

The finance director and other executive directors may be present during Audit Committee deliberations but will not be members of the committee.

• 1. The Audit Committee will meet at least four times a year and will meet independently of the executive management of the company with the external auditors at least once a year.
• 1. The Audit Committee should report to the board and copies of Audit Committee minutes should be tabled at the first board meeting at which it is practicable to do so.

4.5	"GProvidheinfortion indicatedinuido RingPrinciple4".e te tortmaepon	e CThwill pidedetails of thbeoftheditittetheompanyrove memrsaucomme,mbofetiofthudit cmindthofthndethttettes tnuermenge aome ae namese aeeogerwith alanatiofdefrobectidatio4.1,4.2rtustn exponanyparesmpracerecommenns,(if a)fut4.34.4d 4.5initsalortanureannureps.
5.	Maketimelyd balaeddilosanncscure	ny,
5.1	Establishrittlicid peds dignedliaithASXtoenpoesanrocureesensurecompnce wwListinRuledisclouird ttabilityiortsatgsurereqemenano ensureaccouna senforntlevelthatliamanagemecompnce.	The Chantis disclosinlace dignedtoompanys aconuouureprogrampesensurethefaaltiof the C's finaialsitionctuntapresen oompanyncpo
5.2	Providheinfortion indicatedin"GuidingPrinciple5".e te tortmao repon	The Cwill pidelanatiofdefrobectirtustompanyrovasexponanyparesmpracendatind(if a)initsfutals 5.1a5.2,ortrecommeonnyureannureps.
6.	Ret therightsofshholdespecarers
6.1	Designddilosicatioefftivnicatiithstrattoten asce acommunnsegypromoece commuonwffeshholded ectivarticipatiatraltinarersanncourage ee pongenemeegs	The Brdaimthshholded othetakeholdhals tatoao ensurearersanr sersveequainfe Cford timelytoterialatiingth. Intion ianaccessmaormonconcernompanymasicatedthh:-communroug
		1.Thl rert which is distributed tll shareholdd thee annuapoo aersanAualiStk Ehastranocxcnge.
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		Timelythh theAlian Sk Eha3.ntstratocannouncemerougusxcngelatforntsannouncemepm.
		4.The halfiniarid finaialinfatid aortnta-yearrepcongsummsencormonaniewoftioforthriod.atrevoperanspe
		The Brds fullrticipatiof shareholdthe Al Glatoaencouragepan oersnnuaeneraMeeting
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7.	Reised miskcognananage r
7.1	The brdiate brdittehouldtablishlicirisk orsihtdoaorapproproacomme sespoesonvegannt.manageme	t CThe Brdhablished aRiskMmiThrimfstatteoas eanagemenome.e pe purpose otheRiskMt Cmie io identifythof riskwhichttes ttanagemenomseareas oare moslikelyajor disrtionddathe bineoftheCd ttotocause mupn amageusssompanyanoimlemt, withBoardl, planndedhich will mitigatepenapprovas aprocures wanydamage
		The RiskMt Cmiill mftesidd nbuttet atanagemenome wees on as conereecessaryt lethahreimn te tnossesper year.

7.2	The CEO(oivalent) andthe CFO(oivalent) shouldthe brdinitinstatetor equr equoawrgthat:	The CEOd theCFO(oivalent)isuiredakhefollowingtoe tanr equreqmrtificatiothe Brd:tocensoa
	(a)theiven iordithbectidation 4.1(thestatentstmegn accancepracerecommenwintrityoffincial st)is fndedd sofriskatentstemeganmeouonasounysd il coliandolwhichimlemthentntentrtsmanagemeanrnampnce acopenliciadtedbythe brd:dpoesopoaan(b)the'srisk mndinl coliandolt aterntrtemcoananemennance aco	1.ThtheC's finaialletndatortt atruompanyncreps arecompe apresened fairviinallialf the finaialnditiondterctsanewmarespe, onccon a,tiol reltsoftheCd ainrdaiththoperanasuompanyanreacconce werelntidardst astevanccoungan
	mpyagmpsysis oingefficientlyd effectivelyinall mrial aratatets.peanspec	Ththeabt isbad od sofrisk2.attattemove semensen asounysd il coliandold which ilemntntentrtsmanagemeanrnampnce acoanmpene Ctheliciadtedbythe Brdd that th'sriskpoesopoaanompanyd il coliandolis oingefficientlyntntentrratmanagemeanrnampnce acoped effectivelyinall mrial reatets.anspec
7.38.	Providheinfortion indicatedin"GuidingPrinciple7".e te tortmao reponEnhaedrfocouraenncpermance	The Cwill pidelanatiofdefrobectirtustompanyrovanexponanyparesmprace()ndatis 7.1,7.2,d 7.3if ainitsfutalortrecommeonannyureannureps.
	ge
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		theC's finaialic,tiol andrisk m1.trategtompanync, soperanaanagemensitionpo;
		2.their rightsdutiendsibilitinds arespones; a,
		of3.theletheBoard's cmitteroomes
		The Brddekel revieoftherfoofthe Brdd thertaoauns an annuawpermanceoaanindividl dired emiheiatix of skillimctos ts tuarsanxaneappropre mo ensuemaxumefftivndibutioheltsoftheC'sbusinntrn to teceness acoresuompanyess.
9.	Ree fairlyd riblratmuneanesponsy
9.1	Provide disclosinlationthe C'stiooliciebleintos tstourereompanyremuneran po enaversded.torstunan	The Chafoaltiooliompanys armremuneran pcy
	(i)thed befioftholicindststscoanensepoes; a(ii)thelink betwtioaidtoditorndketivdeen remuneran precs ay execuesanerfratcorpoe pormance	The Cwill disclosheofioniddirnde ttumrattotorompanyquanremunepaecs aniotivinitsful re. Alinksbeheionturrtstwn tratser execuese annuaponyeeremunerfoe fidtodirtorndketivd cteill bullypaecs ay execuesanorporapermancewdisclod.se
9.2	The Brdshldtablishtiomitteoaouesaremuneran come.	The Brdisiblefor dinid riewingtioeteoaresponsrmnganevcompensanfontsr the directod theutite. TheBoardhastablishedarrangemersanexecveams ea Rtion Cmitteemuneraome.

9.3	Clearldistinishthofthetive dirers'tiondthoftructuctoatgue srenon-execuremuneran aytheutiexecves.	$Notive direid(exclusivf stion)cto24000 pn-execursarepaerannume ouperannua,$d48000 pintheofthe Chairm. Nutidis dtoranerannumcaseanon-execvereco,rfot reivebad bthentitled tetirinllownocepermanceseonusesnor arey eo rg aances.
		e CTh'stitutioidehat thl reionofall ns te totaratompanyconsn provmuneonutidiill nbeththfixeddemid btorotateterexecverecs wmoreane aggregsumney araltinThionhas bofateratetatntgenemeeg.e aggregremuneeen sanamou$250,000 perannum
9.4	Enthaofuitbad etivtion iade iorditht pntsureaymeeqysexecue remuneras mn accancewthrholdst inlanedbyshholdeesseps approvarers.	The Cwill sk shareholdl for the fofuitbadutuntompanyeeerapprovaregraeqysee Cd Offiction to directoThhas ilacDirectoremunerars.ompanyn pe arsanersOption Planndthe direlloctiokeloyAnhctoateto, arsmay aopnsy empees.y sucwill be disclosedinful reofthe Cntturrtsgrae annuapoompany
9.5	Providheinfortion indicatedin"Guido RingPrinciple9".e te tortmaepon	Thwill elaidefrobectidatio9.1,rtuste companyxpn anyparesmpracerecommenns9.29.3d 9.4initsfutalortanureannureps.,
10	Reisethe litiminofkeholdeatetertsstacognegesrs	s frfoofefoDirtors br individualibilitiethetheirduties becearesponsorpermancerethelad colltivibilityfor the behiouf the Brd.anece responsavr ooaw,
		e fofThollingdendt ethe lislativndlaowcocoucncompassesege acommonwuirf direellthcificbehaviothat the Ct octoreqemenrs,aswase speurompanyofdictstorexperecs.
		The Chadotedthodf cduedbythe Aliacttraompanys ape ce oonaspronouncusnofCoInstituteDirtorThis codides that:mpanyecs.e prov
		1.A direhostlyinodfaithd ihebeintofthctot actn tststsr musnegoaneree,hole.company as aw
		2.A direr hdue dd diliginfulfillingthctotytoasausuecareanenceefunctif officndisinthehed thafficatto tt oons oe aexercgpowersace.
		ofoffice f3.A directot uthinthebestr mussee powersora properpurpose,intofthwholestseree companyasa
		4.A directot reisethattheimsibilityistothr muscognpraryrespone's shareholdwholebuhouldheiathat scompanyersasa, wreappropre,veardfor the iofallkeholdeofthentetsstaregresrscompany.
		5.A direkeimofinfortiouiredctot notr musmaproper useman acqasadirtorec
		6.A diretake iadofthitiof directot notntactor musmpropervagee posn or.
		A direalll inthe iof7.ctot notterts,ntetsr musowpersonaesorresanyciatednflictwith theinofthetotertsassoperson,coescompany.

• 1. A director has an obligation to be independent in judgment and actions and to take all reasonable steps to be satisfied as to the soundness of all decisions taken by the Board.
• Recognise the legitimate interests of stakeholders (continued) 9. Confidential information received by a director in the course of the exercise of directors duties remains the property of the company from which it was obtained and it is improper to disclose it, or allow it to be disclosed, unless that disclosure has been authorised by that company, or the person from whom the information is provided, or is required by law.
  • 1. A director should not engage in conduct likely to bring discredit upon the Company.
  • 1. A director has an obligation, at all times, to comply with the spirit, as well as the letter of the law and with the principles of the code.