Chatham advises proposed sale of subsidiary Avenir Makatea

NEW
S RELEASE 25-022 November 12, 2025
Chatham advises proposed sale of subsidiary Avenir Makatea Pty Ltd
WELLINGTON New Zealand - Chatham Rock Phosphate Limited (TSXV: “NZP”, NZX:
“CRP” and “3GRE” (Frankfurt) or the “Company”) is pleased to announce that it has
signed a non-binding framework agreement with Melbourne based Australian
company Austure Pty Ltd (Austure) that involves the sale of the wholly owned
Australian subsidiary Avenir Makatea Pty Ltd for a consideration of AU$ 1.4 million,
comprised of AU$ 900,000 in cash over a 24-month period, and the Company taking a
20% shareholding in a DCP/MCP manufacturing plant to be established through an
Austure subsidiary company. The parties have agreed to work together to negotiate and
sign a binding formal definitive agreement regarding the sale.
This agreement advances the Korella North mine with a local market for its mined rock
phosphate which will be supplied to this revolutionary manufacturing plant to be built
in Cloncurry by the Austure subsidiary company.
Austure Pty Ltd has developed a unique technology that enables a manufacturing plant
to produce both Dicalcium Phosphate (DCP) and Monocalcium phosphate (MCP). This
unique DCP/MCP technology was developed in Melbourne by Monash alumni chemists
of which one is a principal of Austure Pty Ltd.
Both DCP and MCP are utilised in lick blocks that provide cattle with supplemental
phosphorus which is essential for healthy cattle in the phosphorus-deficient Northern
Queensland and other northern Australian states. Currently all 50,000 tonnes per
annum (tpa) of DCP/MCP utilised in Australia is imported.
The technology utilises a novel green process where electricity is used to generate
phosphoric acid from rock phosphate. The phosphoric acid is then used to manufacture
downstream products such as fertiliser and feed phosphate. The electricity can be
generated from renewable resources in a private off-grid plant.
The technology utilises tailings-grade rock phosphate as low as 16% in concentration of
P2O5 while at the same time avoiding generation of the toxic phosphor-gypsum waste.
The lower quality of the Korella North Mine fits with the supply criteria for the
proposed plant.
Background
Since 2021 CRP’s wholly owned Australian subsidiary, Avenir Makatea Pty Ltd., through
its subsidiary Korella MCP Pty Ltd, has been investigating the establishment of a 30,000
tpa DCP/MCP plant in Cloncurry to utilise phosphate from its Korella deposits.
In the feasibility studies for such a plant, Chatham always faced two considerable issues.
First, the matter of scale. At 30,000 tpa the proposed plant was too small for economical
production. Most plants had to be 100,000 tpa and also based near a seaport, second

was the dependence on utilisation of sulphuric acid in the manufacturing process. With
the supply of sulphuric acid in the Northwest Mineral Province a major unknown, this
provided an unacceptable risk to a conventional DCP/MCP manufacturing plant
proposed to be located in Cloncurry.

As a local supply of sulfuric acid is not a prerequisite for this new DCP/MCP
manufacturing technology, it is feasible for the plant to be located in Cloncurry, with
proximity to the DCP/MCP market. This is expected to undercut the imported
competitors because of the saving in transport costs.

This new system can be established in modules of 5,000 tpa of DCP equivalent calcium-
phosphate. This allows rapid commencement of the plant with a low CAPEX hurdle yet
permits gradual expansion at our own determined pace. The new jointly owned
company will be licensed to utilise the technology (currently being patented).

At the same time the newly jointly owned Austure subsidiary company will establish its
competitive position in the lick block market by offering imported high quality
DCP/MCP sourced from affiliated plants of the Melbourne based technology partner.

With the Framework Agreement now signed the next stage is the execution of a
Memorandum of Understanding later this month and all the related documents by the
end of December 2025

Chris Castle President and Chief Executive Officer Chatham Rock Phosphate Limited 64
21 55 81 85 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 TSX Venture Exchange, its Regulation Service Provider (as that term is defined
under the policies of the TSX Venture Exchange), or New Zealand Exchange Limited has in any
way passed upon the merits of the above described transaction, and has neither approved nor
disapproved of the contents of this press release.