Fact Sheet

as at

14 June 2011

SUMMARY

Widespread Portfolios is listed on the NZSX (code WID) and has been operating successfully as a niche investment company since 1989. It listed by means of a reverse takeover of NZIJ.co.nz Limited in December 2003.  In March 2011 Widespread swapped the oil and gas assets of Widespread Energy (renamed Chatham Rock Phosphate Ltd) for its 10% direct interest in the project.  It resulted in Widespread increasing its shareholding in Chatham Rock Phosphate to 26.6%.

FINANCIALS

The company has 23,490,449 shares and 8,505,123 30 June 2012 warrants on issue. Audited net assets at 31 March 2011 were $7.925 million (34.3 cents/share).  However, including the shareholding in Chatham Rock Phosphate at the independently supported project valuation of $34 million increases Widespread net assets to $14 million or 60.5 cents/share as at 31 March 2011.

MARKET VALUE

A market value of $4.2 million (ords – 18 cents, warrants 1.5 cents) equates to a 70% discount to net tangible assets.  NTA/share and price data is posted daily on the website.

OPERATING PHILOSOPHY

Widespread is a venture capital investor in the mining sector.   Its primary objective is to achieve growth in shareholders' funds. The objective is not to make trading profits on a regular annual basis by selling successful investments.  A year in which NTA per share increases by 20% or more is a good year, regardless of the accounting profit or loss that may have been incurred. The company has no borrowings and is funded entirely by shareholders' equity. The company does not pay dividends: all profits are retained and reinvested. Another key aspect of the WPL investment approach is the relatively narrow spread of investments held at any one time. Often 4 or 5 investments represent at least 90% of the portfolio value.

MANAGEMENT

Widespread has no staff and is operated under contract by Chris Castle.

DIRECTORS

Linda Sanders (chairman), Chris Castle, Denis Kelly, Jill Hatchwell, Keith Hindle 



MAIN ASSETS

as a % of portfolio

Chatham Rise Rock Phosphate Project

Asian Mineral Resources

King Solomon Mines 

Golden Phoenix

Oil and gas assets

Other strategic investments

Cash and smallholdings

63.9

17.6

  6.7

  2.8

  3.7

  2.2

  3.1

CHATHAM RISE ROCK PHOSPHATE PROJECT

Widespread Portfolios holds a 26.6% holding in Chatham Rock Phosphate Ltd (formerly Widespread Energy Ltd), restructured into a single purpose company with an exploration licence believed to have significant seabed deposits of rock phosphate and other potentially valuable minerals. The licence area of 4726 sq km is 600 km east of Christchurch, at shallow depths on the Chatham Rise and in New Zealand territory.  The exploration permit is for two years with further priority rights to extend the permit or apply for a mining licence.   The company completed an active first year programme and is currently working towards a major capital raising and IPO on the Toronto Stock Exchange, selecting a mining partner, undertaking environmental baseline monitoring, and significant stakeholder engagement. (see www.rockphosphate.co.nz for further detail)

ASIAN MINERAL RESOURCES (AMR)

Widespread holds 3.7% of this TSX.V listed company that is developing a nickel mine in Vietnam. In January 2011 AMR raised a further CAD5.5 million at 15 cents a share when the major shareholder (collectively now called the “Tecity Group”) exercised options. Combined with relatively stable nickel prices at around $US 12/lb, this further cash inflow underwrote further development of the Ban Phuc nickel project. This project is now viable even if the 20% export tariff remains in place.

KING SOLOMON MINES (KSO)

Widespread holds 6% of King Solomon which is exploring for minerals in the under explored Inner Mongolia section of a major fold belt that elsewhere hosts world-class gold and copper deposits.  It had an active field season in Inner Mongolia during 2010 with promising drilling results achieved at Bu Dun Hua and the Mudhouse prospect near Sonid Zuqoi. On the back of these results KSO recently raised $A5.3 million and is now pursuing an active exploration programme in the short Mongolian summer window.

OIL AND GAS

PEP 38526 (Kotuku) is located north of Lake Brunner, on the West Coast, South Island. The permit covers the northern half of the Kotuku Structure and a significant portion of the associated Grey Valley Trough. As part of the year-two work programme previous holder Widespread Energy started drilling a stratigraphic exploration bore in mid March 2010 to confirm the shape of the Kotuku anticline, recover samples of the rock strata and determine the nature of any fluids contained within it. Due to operating difficulties the drilling was not completed but significant information was collected.  Widespread Portfolios is now planning the next stages of the exploration programme. Potential partners to assist with  financing and operating this exploration programme are being sought. PEP 38526 also contains a number of other promising targets.

Akura Limited: Widespread holds approximately 10% of Akura, a Fijian-based petroleum exploration company, granted three Oil Exploration Licences in 2009. The licences, totalling 17,667 km2, are located in Nadi Bay, Bau Waters Basin and the northern Bligh Waters Basin, around the main island of Viti Levu. Akura’s three licences and another recent application cover the three deep petroleum sourcing depocenters around the island of Viti Levu.   Existing data has been analysed and shallow wells will be drilled if funding can be found.