CRP finds more REE and establishes Pacific Rare Earths

NEWS RELEASE 18-21 September 5, 2018




CHATHAM ROCK PHOSPHATE RECOGNISES RARE EARTHS IN ROCK
PHOSPHATE AND ESTABLISHES PACIFIC RARE EARTHS LIMITED


WELLINGTON New Zealand – Chatham Rock Phosphate Limited (TSXV: “NZP” and
NZAX: “CRP” or the “Company") is pleased to announce that it has recently formed a 100%
owned subsidiary Pacific Rare Earths Limited.

This company has been formed to project-manage a work programme aimed at quantifying
the extent, value and recoverability of Rare Earths Elements (REE) and other potentially
strategic or valuable minerals contained in the rock phosphate nodules on the Chatham Rise.

In addition, the company will be investigating the existence and recovery potential of rare
earths and other valuable minerals in seafloor muds on the Rise.

Rare Earths in phosphate

A recent study of marine phosphate nodules by the United States Geological Survey reveals
that there are significant quantities of REE contained within the phosphate nodules on the
Chatham Rise. Of the 17 recognised rare earths, 15 are present in Chatham Rise rock
phosphate nodules, as well as varying concentrations of other valuable minerals including
nickel, cobalt, chromium, vanadium, zirconium, fluorine and strontium. Collectively these
minerals, if they can be efficiently extracted as by-products, represent not only an immensely
strategic asset for New Zealand but could significantly improve the already attractive forecast
project economics.

The presence of these minerals within the phosphate rock is highly significant because the
contained value may be released onshore (if extraction proves feasible and economically
viable) without any change to the proposed mining system, and without any additional
environmental impacts in the Project area.

Rare Earths in seafloor muds

Shareholders will recall that we established and announced some time ago that there were
significant quantities of rare earths and other valuable minerals in the seafloor muds in our
permit area. These include cerium, lanthanum, neodymium, praseodymium, yttrium, cobalt,
rubidium, cesium, germanium, gallium, strontium, thallium and tungsten.

The primary challenge associated with the production of rare earths from the muds is the
extraction process, and the advancement of processing technology that will be required in
order to demonstrate the feasible and economically viable separation of any of these
minerals. In addition, recovery of rare earths from muds will involve the development of a
new marine mining system, and therefore will be considered for development separately from
the existing CRP rock phosphate nodules project.

Further Independent Research

The information CRP already holds about REEs and other valuable minerals in its permit
areas was generated by independent organisations, with some of this work undertaken up to a
decade ago. The current knowledge confirms that REEs occur over a wide area, and estimates
of the average grades and therefore the size of the potential deposits have been made at a
conceptual level. The current conceptual information, when assessed against current price
data, confirms the significance of potential value.

As a result of the extremely favourable preliminary research, CRP has commenced a dialogue
with appropriated skilled and funded external parties, based both in New Zealand and
internationally, in order to further develop better upstanding of the extraction and recovery
potential of the minerals.

CRP is excited to be engaging in the investigation of REE recovery, which is a strategic
priority of the New Zealand Government in relation to the mineral sector, as recently stated
by the Honourable Dr Megan Woods, Minister of Energy and Resources.

The Chatham Rise rock phosphate and rare earths deposit has the potential to contribute to
the understanding of REE potential in New Zealand, given that it is likely that there is more
information already available about the REE minerals in the Chatham Rise deposit than any
other rare earths deposit in New Zealand.

CRP expects to be in a position to release more information on this exciting initiative in
forthcoming months.

For further information please contact

Chris Castle
President and Chief Executive Officer
Chatham Rock Phosphate Limited
64 21 55 81 85 or chris@crpl.co.nz



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Exchange), or New Zealand Exchange Limited has in any way passed upon the merits of the Transaction and
associated transactions, and has neither approved nor disapproved of the contents of this press release.