Chatham Issues January 2016 Update

Chatham Issues January 2016 Update

Last chance to invest at the old price

As shareholders will be aware, Chatham has been steadily progressing its fundraising programme in recent months. However, as we are about to merge with cashed up Antipodes Gold by means of a reverse takeover we will need to cease this activity in the very near future.

After the merger shareholders will still be able to invest, but we will be a significantly different company.

We will still be called Chatham Rock Phosphate, but we expect then to be listed on the Canadian TSX.V exchange, we will have inherited the Antipodes cash balances, its 500 mostly Canadian shareholders, a new Toronto based director, and its Canadian organisational infrastructure.

We are doing this to broaden our appeal to USA, Canadian and other international investors. We expect that this will strengthen Chatham and facilitate further capital raising in international markets when it is needed.

As the merger is expected to commence in mid-February this is the last chance to invest in Chatham on the current offer terms of 0.6 cents a share. Application forms are available for eligible investors by emailing chris@crpl.co.nz. The offer will close on Friday 5 February.

Proposed attendance at PDAC Convention

As part of Chatham’s repositioning in investor markets, we are attending, hosting a booth and presenting at the annual Prospectors & Developers convention to be held in Toronto in early March.

PDAC International Convention, Trade Show & Investors Exchange is the world’s leading convention for people, companies and organisations in, or connected with, mineral exploration. This year more than 1,000 companies and countries (including NZ’s MBIE minerals arm) will be exhibiting and 23,500 attendees from over 100 countries will be present.

Progress Report

Current initiatives include:

• Working through the steps required before we decide whether to resubmit our application for a Marine Consent. This includes reviewing the previous application to EPA – we have commissioned a 360 degree review from the key players involved in the last application.

• Working with officials in various government ministries to seek efficiencies in the permitting process – the recently announced Resource Legislation Amendment Bill has the potential to achieve these.

• Keeping a close watch on the actions of Trans Tasman Resources. Encouragingly TTR has already announced that it intends to reapply for a Marine Consent, and it appears likely that this application will proceed under existing legislation.

• Investigating and advancing trading relationships with other participants in the phosphate sector

• Continuing to build our shareholder base – we now have more than 1,000 shareholders and will have 1,500 after the merger

• Advancing towards sourcing reactive rock phosphate from several well located on-shore deposits

• Continuing to build farming sector, academic, industry and central government support for the Chatham Rise project and for the use of Chatham rock phosphate as a sustainable, environmentally friendly phosphorous source. As part of this we’ve commissioned further pot tests to be followed by field trials

• Attempting to resolve the fee dispute with EPA

• Seeking a refund of overcharged mining permit fees

• Being actively involved and frequently invited to present at fertiliser, resources sector and marine mining conferences, and undersea environmental protection forums.

Restated Goals and Objectives

As shareholders will be aware Chatham Rock Phosphate has redefined its goals and objectives and it’s timely to restate these.

Chatham Rock Phosphate (CRP) aims to be the premier supplier of direct application phosphate to the New Zealand and global agricultural sector. We are passionate about the benefit of direct application fertiliser to sustainable farming and agricultural practices.

Our objectives are to:

• Achieve consent of the Chatham Rise project and develop the asset

• Diversify our product mix to include other onshore phosphate resources

• Maintain our involvement at the forefront of the marine minerals sector to leverage our expertise as a project pioneer

• Develop a pathway for CRP products for the agricultural and retail sectors.

Why do we prefer to focus on supplying direct application phosphate?

Three reasons:

1. It’s the sort of special rock that is in the substantial Chatham Rise deposit

2. Direct application rock phosphate is proven to be significantly more environmentally friendly toward both soils and waterways

3. In some markets it sells at a significant premium despite the lower production costs

How well are we progressing with these aims?

1. After a global search of rock phosphate deposits we have identified a short list of small, well located, low capital cost “boutique” phosphate resources.

2. We are now in contact with the permit holders and embarking on exploratory discussions concerning the sourcing of rock for sale. Our ace in the hole is the expertise and experience of Moroccan Najib Moutia, our vice president strategy and marketing.

3. Target markets for these deposits are localised, making freight costs much less of an issue.

4. We will target a range of buyers in these markets, including bulk supply, niche organic/sustainable users, and into the retail market. We are making good ground in all three arenas.

The Chatham Rise timetable from here

March 2016 - Chatham completes financing programme, Antipodes and Chatham merge with the combined entity listed on the TSX.V and NZAX

March/June 2016 – decision made to resubmit Marine Consent Application

September 2016 – Marine Consent Application lodged

March 2017– fast tracked decision released

June 2017 – Marine mining contract finalised and ship conversion commences

September 2019 – trial mining

January 2020 – commercial mining commences

In parallel with progressing the Chatham Rise project CRP will be steadily building a phosphate trading business in preparation for accepting and marketing the offtake from the Chatham Rise deposit.

Our confidence in achieving these parallel onshore and offshore objectives is based on both our in-house phosphate trading expertise and the progress we have made identifying suitable rock phosphate sources and suitable trading partners.

ENDS

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