Chatham looks forward to a productive 2018

Update
News Release 18: 1 9 January 2018
Chatham Rock Phosphate looks forward to a productive 2018

Chatham Rock Phosphate (NZ: CRP, TSX.V: NZP) (“CRP” or “the Company”) provides a further quarterly
shareholder briefing. The fourth quarter of 2017 was particularly active and it’s timely to provide
another informal update on recent events and also outline our plans for 2018.

Events of note include:

International Meetings

In late September Chatham Rock Phosphate delivered two keynote addresses at the Underwater Mining
Conference hosted by the International Marine Minerals Society, this year held in Berlin.

Chatham CEO Chris Castle updated the scientists, marine miners, sector investors and other industry
players attending the conference from 25 countries on the company’s present status and forward plans.

His address, the central theme of this being that Chatham remains on track to re-submit a marine
consent application, was warmly received.

His address was followed by a well-received presentation from Renee Grogan, Chatham’s recently
appointed project manager and leader of its proposed marine consent reapplication. Renee is also a
director of the World Oceans Council. Her central theme was the necessity for inter-industry
collaboration between those already working in the world oceans and proposed new entrants.

It is the seventh year Chatham - one of the most advanced marine mining projects in the world - has
updated the marine mining industry on progress. Chatham has held a granted mining licence since
December 2013 and plans to apply for a marine consent in the fourth quarter of 2018.

Attendance at the conference was followed by meetings in The Netherlands with Boskalis and Deltares.
Both have worked with Chatham for several years on developing the phosphate extraction technology,
as well as measuring and targeting the minimisation of possible environmental impacts.

Rare Earths Research

Chatham also confirmed it is about to commission a research project aimed at separating valuable by-
products (including rare earths) within the sandy seafloor matrix that contains the rock phosphate
deposit. As our phosphate recovery process is already bringing these sands up to the vessel there is no
mining cost involved, merely the costs of separating these by-products from the sand before it is
returned to the sea-floor. Successful recovery of even a small proportion of these by-products could add
significantly to our future revenue and profitability and also establish a strategic ocean-floor based asset
for New Zealand.

Change of Government and Environmental Messaging

Following the change of government in New Zealand Chatham provided briefing notes to a number of
incoming Ministers. Individual briefing notes were sent to the 10 most relevant Ministers, including the
Prime Minister and Deputy Prime Minister, as well as the Ministers of Energy and Resources,
Environment, Economic Development, Agriculture, Fisheries, Forestry, Export Development,
Conservation and Regional Development.

The notes provided a succinct summary of our project and particularly its net environmental benefits.

In parallel with those submissions to government Ministers Chatham released a sequence of
announcements to the market and to shareholders further elaborating the environmental pluses
associated with our project. These benefits are outlined further in the latter section of this release.

Independent Investment Reports & Media Coverage

On 18 October Australia-based Independent Investment Research released an independent research
report on Chatham Rock Phosphate to its extensive international client list. The report was subsequently
published on the Bloomberg, Reuters, FactSet, Capital IQ and Research Tree (UK) platforms.
The full report is available from me on request, and is also accessible at www.rockphosphate.co.nz.

Chatham also featured in Resource World, a Vancouver based publication that is widely distributed in
international mining and investment circles.

TV coverage included a 15 second clip about Chatham Rock Phosphate on BNN (Canada) beginning
November 6 and running until December 3.

This week Canada-based Fundamental Research Corp (FRC) will complete an independent report on
Chatham Rock Phosphate. Further details will be released in due course but it is likely that the report
will only be available directly from FRC.

Successful rights issue

Chatham’s rights issue offer to all existing shareholders closed on 24 November 2017. The issue raised
approximately NZ$549,000 in new capital and was the eighth such issue supported by our loyal
supporters since 2010. Chatham management were also major participants in the issue.

Private Placements

In December we launched a private placement for up to 4,000,000 units (the “Units”) at a price of CAD
0.30 per Unit for gross proceeds of up to CAD$ 1,200,000.

Each Unit consists of one common share in the capital of the Company and one-half of one non-
transferrable share purchase warrant (“Warrant”). Each whole Warrant will entitle the holder thereof
to acquire one common share at a price of CAD$0.45 per share at any time prior to the date that is two
years from the date of issuance.

The issue will close on January 19. Please contact Chris Castle if you wish to participate.

Moving away from being a “one trick” pony

We also made significant progress towards securing marine phosphate opportunities offshore. This
initiative will involve minimal upfront costs but is aimed at securing strategic alliances linked to marine
phosphate assets in other countries. We consider this initiative, which leverages our in-house expertise,
to be very much in the interests of our shareholders. As and when they arise, future commitments will
be structured in a manner where they will not divert funding from our principal objective, that of
gaining the Chatham Rise Marine Consent on our second try.

What’s coming up?

The private placement aspect of our financing programme is being undertaken in stages, partially to
reduce shareholder dilution as much as possible given the present historically low market value of your
company.

As such this will likely affect the reapplication timetable but not significantly. We still anticipate
completing the reapplication process and hearing by early 2020 assuming that the present funding
target is reached by the end of January.

A reminder about our environmental and other benefits

You can be our advocates whenever our project is raised in conversation. To remind you why the
Chatham Rise project remains hugely important for New Zealand, here are the key reasons:

 Our rock is a proven reactive phosphate rock. Using it results in much less run-off into waterways
and an improved soil profile compared with the effects of manufactured fertilisers.
 As such it is an organic fertiliser
 It also contains ultra-low levels of cadmium, a cancer-causing heavy metal with much greater
concentrations in other rock phosphate deposits
 Being locally sourced and needing to be applied less frequently results in much lower carbon
emissions (in effect increasing the NZ EV fleet from 5,000 to 24,000 vehicles)
 The environmental footprint of seabed extraction is demonstrably smaller than the impact of
onshore phosphate on local communities overseas
 The rock is within one day’s sailing distance and supply is far more secure than phosphate rock
coming from unstable regions on the other side of the world.
 The project economics are attractive and Chatham will pay significant royalties and income taxes
 The project will generate new jobs in environmental monitoring, on the mining ship, in the home
port and in the science and agricultural sectors

The following graphic outlines these and other key benefits. See also our online interactive infographic
at http://www.rockphosphate.co.nz/projectinfographic





Regards

Chris Castle, Managing Director
chris@crpl.co.nz or +64 21 55 81 85
skype: phosphateking

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