Mr. Chris Castle reports

CHATHAM ROCK PHOSPHATE LIMITED CLOSES PRIVATE PLACEMENT

Chatham Rock Phosphate Ltd. has closed a non-brokered private placement of 2,677,822 common shares at a price of five Canadian cents per share (6.2 New Zealand cents) for gross proceeds of $133,891.10 (Canadian) ($166,024.96 (N.Z.)).

The shares issued pursuant to this private placement will be subject to a hold period of four months plus one day after the closing date of this private placement as provided by securities legislation. The private placement is still subject to final approval of the TSX Venture Exchange. No finders' fees were payable in connection with the private placement.

Certain insiders of the company acquired a total of 1.18 million shares under the private placement, which were considered to be related-party transactions within the meaning of Policy 5.9 of the exchange and Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions) adopted in Policy 5.9. The company is relying on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of related-party participation in the offering as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involves the related parties, exceeded 25 per cent of the company's market capitalization (as determined under MI 61-101).

Disposition of funds

The private placement funds raised will be used for general working capital.