Chatham Rise Rock Phosphate Project Update

New Zealand Exchange Limited
P.O. Box 2959
Wellington

3 September 2010

Dear Sir,

Chatham Rise Rock Phosphate Project Update

Widespread Portfolios owns 10% of this project and holds another 18% indirectly through its 20% holding in Widespread Energy (the project operator).

The Chatham Rise rock phosphate project is making rapid progress in evaluating the viability of its undersea reserves.

The Widespread Energy Ltd and Widespread Portfolios Ltd joint venture has established a team of key technical, environmental, financial and other experts to bring together and evaluate existing data.  

These include people who investigated the potential of the resource in the 1980s and have a wealth of knowledge.   The technical advisers and Widespread directors have recently met in Wellington for a two day workshop to share knowledge, identify information gaps and plan the next steps in the years one and two work programmes for the project.

Key steps include:

·        The data gathered in the exploration voyages of RV Valdivia and RV Sonne in the late 1970s and early 1980s has now been digitised and that data is now being analysed.

·        A dialogue has also recently been initiated with representatives of the German organisations that played a central role in the exploration role in the early 1980s.

·        Further work is also being undertaken with several undersea mining organisations to evaluate the optimal approach to extraction of the joint venture’s  seabed rock phosphate resource.

Project Director Chris Castle also attended last week’s Australian fertiliser industry annual conference and while there met representatives of a number of fertiliser manufacturers and users.
He will also be presenting a paper at a conference on undersea mining in Russia in October.

In conjunction with profile raising for the project, a six page fold-out marketing brochure has been produced and is available to view and download on the project website rockphosphate.co.nz.

“We’re achieving significant progress on a number of fronts and this project is developing a lot of momentum.  We want to be in a position to complete our first year report to Crown Minerals well within the specified time frame,” Mr Castle said.

On behalf of the Board

Chris Castle

Wellington, 3 September 2010