CHATHAM CONFIRMS SIGNIFICANT PROGRESS IN ITS MCP PROJECT

NEWS RELEASE 23-10 May 3, 2023


CHATHAM CONFIRMS SIGNIFICANT PROGRESS IN
ITS MONOCALCIUM PHOSPHATE PROJECT

WELLINGTON New Zealand – Chatham Rock Phosphate Limited, “CRP” or “the Company”
(TSXV: “NZP”, NZX: “CRP” FSE “3GRE”) wishes to announce that our wholly-owned Australian
subsidiary, Korella MCP Pty Ltd., has taken a significant first step in its march to become the sole
Australian producer of monocalcium phosphate (MCP).

The first step to produce MCP is to produce the precursor weak phosphoric acid (WPA) which
has just been successfully accomplished in bench scale tests at Monash University.

Background

Since early 2021, plans have been progressed by CRP to enable production of 30,000 tonnes per
annum (tpa) of MCP to meet the needs of primarily the cattle industry of Northern Australia.

The severe phosphorus deficiencies in North Australian range land means that for cattle
production in this extensive region supplemental feeding of phosphorus is an essential part of
cattle raising and management.

MCP is a soluble and palatable form of phosphorus readily taken up by all farmed animals to
build healthy bones. MCP, presently 100% imported, is an essential part of all cattle lick blocks
and cattle dry lick. There are some 14 major lick block manufacturers in Queensland and NSW
serving the cattle industry in the North.

MCP is also the preferred phosphorus supplement for pigs and poultry.

With Australia importing all of its animal feed grade phosphorus supplements of around 50,000
tpa, the development of a Cloncurry based manufacturing facility to produce 30,000 tpa will
deliver a reliable quality product into a resilient supply chain.

The inputs for production of MCP of phosphate, limestone and sulphuric acid will, apart from
sulphuric acid, be sourced from our Korella North mine. However, sulphuric acid will be
manufactured on-site utilising prilled sulphur imported from Canada.

Alternative Strategy

Although Korella MCP has already worked with Belgium phosphate technology company
Prayon, an alternative strategy has been pursued to utilise existing technology in Australia to
develop MCP production capability.

As part of this strategy CRP commissioned Monash University to work on this project.

Bench scale tests have commenced and the first step in this three-stage process has been the
successful production of weak phosphoric acid (WPA).

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The second step is for the WPA to be partially neutralised using slaked lime to produce soluble
monohydrated MCP. In the third step the soluble monohydrated MCP is then heated at low
temperature in acidic conditions to evaporate the water to crystallize the MCP.

Negotiations are underway with Monash University to use their Pilot Plant to undertake the full
range of processes required to manufacture MCP.

Korella MCP will be produced to meet the highest international quality and consistency
standards which will enable CRP to also supply overseas markets.

Project Logistics and Funding

The Cloncurry site for the manufacturing facility has been selected and preparation of a
Development Application to Cloncurry Shire Council is underway.

At the same time, after an initial approach to the Northern Australia Infrastructure Fund,
further discussions are expected to have the MCP project assessed for possible funding under
the scheme as the development of an MCP plant in Australia is of national importance.

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Executive Director, Colin Randall will present a paper entitled “The Top End Cattle Industry is
dependent on MCP” to the annual Developing Northern Australia Conference being held in
Darwin from 24-26 July 2023 in Darwin.

Meanwhile approaches have been made to both European and Malaysian based MCP producers
to become involved in the project.

Korella MCP Pty Ltd plans to be the reliable and resilient supplier of choice for Australian
consumers of quality MCP.

For further information please contact:

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


Statements about the Company's future expectations and all other statements in this press release other than
historical facts are "forward looking statements". Such forward-looking statements are based on numerous
assumptions, and involve known and unknown risks, uncertainties and other factors, including risks inherent in
mineral exploration and development, which may cause the actual results, performance, or achievements of
the Company to be materially different from any projected future results, performance, or achievements
expressed or implied by such forward-looking statements.

Neither the Exchange, its Regulation Service Provider (as that term is defined under the policies of the
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.