Chatham Rock Phosphate Limited · NZX:CRP

Chatham Rock Phosphate — Technical Presentation (February 2013)

39 slides from Chatham Rock Phosphate's technical presentation, Feb 26, 2013

1. Slide 1: Phosphate Mining on the Chatham Rise

   PHOSPHATE MINING ON THE CHATHAM RISE ERIK SCHOUTE SENIOR ENGINEERING GEOLOGIST, BOSKALIS EMSAGG SEMINAR ‘OPPORTUNITIES FOR EUROPEAN MINERAL RESOURCES’ \ BUNDESAMT FÜR SEESCHIFFART UND HYDROGRAPHIE (BSH), HAMBURG 26 FEBRUARY 2013 2

2. Slide 2: Index

   INDEX INTRODUCTION CHARACTERISTICS OF DEPOSIT AND PHOSPHORITE NODULES LICENSE AREA AND RESEARCH HISTORY MINING PROCESS \ QUESTIONS 3

3. Slide 3: Introduction

   INTRODUCTION • CHATHAM RISE STRETCHES FROM NZ SOUTH ISLAND TO JUST BEYOND CHATHAM ISLANDS • 130 KM WIDE, 960 KM LONG, WATER DEPTHS 350-450 M • PHOSPHATE DEPOSITS ALONG 400 \ KM OF RISE • PHOSPHORITE NODULES CONCENTRATED AT SEABED OR EMBEDDED IN GLAUCONITIC SILTY SAND • AVERAGE PHOSPHORITE CONTENT OF

4. Slide 4: Introduction

   INTRODUCTION • FERTILISER USE IN NZ ~3 M TONNES/YEAR • PHOSPHORITE (OR: ROCK PHOSPHATE) AND SULPHURIC ACID ARE PRIMARY CONSTITUENTS OF SUPERPHOSPHATE (MAIN FERTILISER IN NZ) \ • NZ IMPORTS ~100% OF ITS ROCK PHOSPHATE REQUIREMENTS (1 M TONNES/YEAR) FROM MOROCCO • CHATHAM RISE IS NZ’S ONLY SIGNIFICANT

5. Slide 5: Introduction

   INTRODUCTION BENEFITS OF CHATHAM RISE ROCK PHOSPHATE: • VERY LOW IN CADMIUM • MUCH LOWER CARBON FOOTPRINT • DIRECT APPLICATION OPTIONS (NO DIRECT NEED TO CONVERT TO \ SUPERPHOSPHATE) • SECURITY OF SUPPLY • CHEAPER SOURCE THAN MOROCCO • REDUCED FOREIGN EXCHANGE RISKS • IMPORT SUBSTITUTION AND EXPORTS

6. Slide 6: Characteristics of Deposit

   CHARACTERISTICS OF DEPOSIT • PHOSPHORITE NODULES RANDOMLY DISTRIBUTED THROUGH LAYER OF VERY SILTY GLAUCONITIC SAND, MAXIMUM PROVEN THICKNESS 155 CM • OVERLYING OLIGOCENE CHALK/OOZE • PHOSPHORITE CONSTITUTES CA. 15% \OF GLAUCONITIC SAND LAYER IN WHICH IT IS FOUND • NODULE CONCENTRATION HIGHLY VARIABL

7. Slide 7: Characteristics of Deposit

   CHARACTERISTICS OF DEPOSIT • PHOSPHATE DEPOSITS FORMED LATE MIOCENE (7-12 M YEARS AGO) • MIOCENE CHALK OVERLYING EARLY OLIGOCENE CHALK • CHALK PEBBLES FORMED , UPTAKE OF PO4 FROM MUD AND SEAWATER \ • PHOSPHATISATION AND SURFICIAL FERRUGINISATION OF CHALK PEBBLES • EROSION OF MIOCENE CHALK, FORMATION

8. Slide 8: Characteristics of Nodules

   CHARACTERISTICS OF NODULES • CORE (I): WEAKLY PHOSPHATISED NANNO CHALK • LAYER (II): INCREASINGLY MORE PHOSPHATISED CHALK ZONE • RIM (III): GOETHITE ZONE (DARK BROWN) \ • RIM (IV): COLLOPHANE ZONE (YELLOWISH) • RIM (V): GLAUCONITE ZONE (GREENISH BLACK) 9

9. Slide 9: Characteristics of Nodules

   CHARACTERISTICS OF NODULES • IRREGULAR SHAPES • HEAVILY BURROWED AND BORED • SIZE VARIES BETWEEN SAND (1-2 MM) AND COBBLE SIZE (>150 MM), VERY FEW >200 MM • AVERAGE SIZE 20-40 MM \ • P2O5 CONCENTRATIONS BETWEEN 21 AND 22.5% • OTHER MAJOR CONSTITUENTS: SiO2, CaO, Fe2O3, F, Al2O3, MgO • HIGHEST CONCEN

10. Slide 10: CRP License Area

    CRP LICENSE AREA _! 1 a6 : 2

11. Slide 11: CRP License Area

    CRP LICENSE AREA • CRP LICENSE AREA MPL 50270, APPLIED AUGUST 2007, GRANTED FEBRUARY 2010 • 4,726 KM2, WATER DEPTH 350-450 M, 500-600 KM EAST OF CHRISTCHURCH, NZ IN NZ TERRITORIAL WATERS \ • CHATHAM ROCK PHOSPHATE LTD (CRP) PARTNERS WITH BOSKALIS • EXTENSIVELY RESEARCHED IN RECENT YEARS 12

12. Slide 12: Research History

    RESEARCH HISTORY • PHOSPHORITE NODULES DISCOVERED BY NZ SCIENTISTS IN 1952 • FIRST INVESTIGATED IN 1960/70’S • EXTENSIVELY STUDIED IN 1978 AND 1981 • JOINT BOSKALIS/CRP SITE INVESTIGATIONS IN 2011 AND 2012 \ • FOUR SEPARATE CRUISES WITH R/V ‘DORADO DISCOVERY’, 50 DAYS SURVEY TIME • MULTI-BEAM, SUB-B

13. Slide 13: R/V 'Dorado Discovery'

    f {i eo be y poRADO DISCOVERY \&\ Boskalis Offshore

14. Slide 14: R/V 'Dorado Discovery'

    R/V ‘DORADO DISCOVERY’ \ 15

15. Slide 15: Grab Sampling

    & Boskalis Offshore

16. Slide 16: Grab Sampling

    GRAB SAMPLING & Boskalis Offshore

17. Slide 17: Grab Sampling

    \&\ Boskalis vr Offshore

18. Slide 18: Vibrocoring

    VIBROCORING \ 19

19. Slide 19: Vibrocoring

    & Boskalis Offshore

20. Slide 20: Vibrocoring

    CUGKT OT LUN ER TAMIR AHS ETAT NNUE END & Boskalis Offshore

21. Slide 21: ROV 'Zeus' (Bathy, Video, Sampling, Jet Testing)

    ROV ‘ZEUS’ (BATHY, VIDEO, SAMPLING, JET TESTING) \ 22

22. Slide 22: ROV 'Zeus' (Bathy, Video, Sampling, Jet Testing)

    ROV ‘ZEUS’ (BATHY, VIDEO, SAMPLING, JET TESTING) \ 23

23. Slide 23: ROV 'Zeus' (Bathy, Video, Sampling, Jet Testing)

    ROV ‘ZEUS’ (BATHY, VIDEO, SAMPLING, JET TESTING) \ 24

24. Slide 24: ROV 'Zeus' (Bathy, Video, Sampling, Jet Testing)

    ROV ‘ZEUS’ (BATHY, VIDEO, SAMPLING, JET TESTING) \ 25

25. Slide 25: ROV 'Zeus' (Bathy, Video, Sampling, Jet Testing)

    ROV ‘ZEUS’ (BATHY, VIDEO, SAMPLING, JET TESTING) \ 26

26. Slide 26: ROV 'Zeus' (Bathy, Video, Sampling, Jet Testing)

    ROV ‘ZEUS’ (BATHY, VIDEO, SAMPLING, JET TESTING) \ 27

27. Slide 27: Detailed Multi-Beam Bathymetry

    DETAILED MULTI-BEAM BATHYMETRY \ 28

28. Slide 28: Side Scan Sonar

    \&\ Boskalis Offshore

29. Slide 29: Side Scan Sonar

    SIDE SCAN SONAR \ 30

30. Slide 30: Side Scan Sonar

    SIDE ee SONAE & Boskalis — Offshore 3t

31. Slide 31: Fraction Analysis

    FRACTION ANALYSIS 100.00 90.00 ~ +0004 == D006 80.00 ——pb14 8 pDto 78ee 70.00 —pp1e ——pp25 Medium nodules 60.00 g ] —e-0027 3 3 50.00 - baa 3 40.00 —pp32 —p40 30.00 0042 20.00 = DD45 10.00 0046 ] - p47 i f 6.00 = = wm average Ts ; i 08-10 10118 11817 17-20 204.0 4080 80-254 254-80 Do >3 Large nodule

32. Slide 32: Fraction Analysis

    FRACTION ANALYSIS 2500 3000 +0008 0008 sao =e 1005 2500 0006 00 004 oo 2000 0018 1500 02s —+o0as * z e002 500: e002 = = —vo2 voz 2000 —oon s000 0x2 5.00 008 so 001 -s-poas = 008s 0045 0046 0.00 oo 0840 10438 11827 1720 2040 4980 80254 254.80 —0D4T 0210 101se 14847 1720 2040 4089 20254 254.80 —DO4 ri

33. Slide 33: Mining Considerations

    MINING CONSIDERATIONS PRIMARY FACTORS INFLUENCING MINING PLAN: • VARIABLE WATER DEPTH AND MORPHOLOGY • VARIABLE LAYER THICKNESS AND COMPOSITION OF DEPOSIT • VARIABLE RESOURCE CONCENTRATION • IMPACT ON BENTHIC AND PELAGIC ENVIRONMENT \ • ECONOMICS (CAPITAL AND OPERATIONS EXPENSES, EXPECTED (WORLD AND

34. Slide 34: Mining Considerations

    MINING CONSIDERATIONS \ 35

35. Slide 35: Flexible Dredging System

    FLEXIBLE DREDGING SYSTEM \ 36

36. Slide 36: Flexible Dredging System

    FLEXIBLE DREDGING SYSTEM \ TOP VIEW SIDE VIEW 37

37. Slide 37: Unloading Options (Wet/Dry)

    UNLOADING OPTIONS (WET/DRY) \ 38

38. Slide 38: Proposed Mining Cycle

    PROPOSED MINING CYCLE • DREDGING FOR SEVERAL DAYS, RESULTING IN 50,000 TONNES OF NODULES • RECOVERY AND STEAMING TO PORT, CA. 1 DAY \ • UNLOADING (WET/DRY OPTION, DECISION TO BE MADE) AND PREPARING FOR MINING TRIP, CA. 1 DAY • STEAMING BACK TO SITE FOR NEXT MINING TRIP, CA. 1 DAY 39

39. Slide 39: Questions?

    QUESTIONS? \ 40

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