Dear Shareholder

Share Purchase Plan

On behalf of the Directors of Chatham Rock Phosphate Limited (CRP), I am pleased to offer you an opportunity to participate in a Share Purchase Plan (SPP), where you can apply for up to 100,000 New Shares in CRP. 

Capital Raised

CRP recently closed the submission window for subscriptions to its non-brokered private placement of 878,000 Shares for gross proceeds of CA$70,240 (NZ$87,800), the latest in a series of such offers raising a total of CDN$1,403,596 (NZ$1,701,827) in the past 12 months.  

The Company intends to primarily use the net proceeds raised from those placements and under this Offer for the following purposes:

• continuing the fast tracking of the development of the Korella North mine, the latter presently anticipated to be in production in Q4, 2024;    
• completion of the permitting process for the Avenir Makatea onshore phosphate project in French Polynesia with expected operating cash flows in 2027; and
• general working capital.

It is anticipated that operating cash flows from the Korella North mine will, during late 2024 and 2025, provide working capital while also financing the development of our Korella South mine and the re-application for a Marine Consent (environmental permit) for our Chatham Rise project.

SPP Terms

The maximum number of Shares available under this SPP is 200,000,000 Shares. Eligible Shareholders may apply for a minimum of 5,000 Shares and up to 100,000 Shares. If an Eligible Shareholder wishes to subscribe for more than 100,000 Shares they may apply for more Shares through the Oversubscription Facility (which in the event of excess demand may be subject to scaling in the manner described at clause 3.2 of the terms and conditions in the Offer Booklet).

The full terms and conditions of this SPP and how you can participate in it are contained in the Offer Booklet made available on this webpage. You are encouraged to read these terms and conditions in their entirety before you decide whether to participate.

If you choose to apply for Shares under this SPP, please apply online at the following link
https://chathamrock.capitalraise.co.nz. Eligible shareholders have until 5:00pm (New Zealand time) on 26 July 2024 to apply for new shares under the SPP Offer.

On behalf of the Directors, I thank you for your support of CRP and invite you to consider this opportunity to participate in our growth.

Yours sincerely,

Linda Sanders
Chair