Z Energy announces a bond offer to NZ investors

29 June 2011

Z Energy announces a bond offer to New Zealand investors

Z Energy Limited ("Z Energy", formerly Greenstone Energy Limited), has today registered a Simplified Disclosure Prospectus for an offer of up to NZ$100 million bonds (with the ability to accept oversubscriptions of up to NZ$50 million).

The offer is expected to open on Friday 8 July 2011 and to remain open until 5 August 2011 (unless extended by Z Energy).

The bonds will have an interest rate of 7.25% p.a. and will mature on 15 August 2018.

Z Energy is pleased to be offering bonds to New Zealand investors, following its successful inaugural bond offering in 2010. This represents an opportunity to invest in an emerging Kiwi brand, supported by 100 years of heritage and a track record of market-leading performance.

The bonds are secured senior obligations of Z Energy and will rank equally with each other and the existing series of bonds issued by Greenstone Energy Finance Limited (in respect of which Z Energy has become the substitute issuer).

The bonds are unconditionally guaranteed by Z Energy, Aotea Energy Limited, Greenstone Energy Holdings Limited, Greenstone Energy Finance Limited, Harbour City Property Investments Limited, Big Tree Stations Limited and Mini Fuels & Oils Limited (“Z Energy Group”). The ultimate joint owners of the Z Energy Group, New Zealand Superannuation Fund and Infratil, do not guarantee the bonds. The Z Energy Group's banks and bondholders share the same security over Z Energy’s and the guarantors' assets on an equal ranking basis. This security ranks behind Shell's security over petroleum products that Shell has supplied for which it has not been paid, and their proceeds, and statutorily preferred creditors.

Interest will be paid quarterly, with the first interest payment date scheduled to occur on 15 August 2011. The first interest payment will be interest to the original subscriber (ITOS) and include early bird interest earned on subscription monies from the date these are banked into the offer trust account.

The Joint Lead Managers for this issue are:

ANZ National Bank Limited 0800 269 476

First New Zealand Capital Securities 0800 005 678

Forsyth Barr Limited 0800 367 227

Westpac Institutional Bank 0800 489 222

ENDS

Applications for the bonds can only be made using the application form included in the Simplified Disclosure Prospectus for the bonds. Investors should contact any of the Joint Lead Managers or their financial advisor to request a copy of the Simplified Disclosure Prospectus or secure an allocation of the bonds.

No applications for bonds issued by Z Energy will be accepted or money received unless the subscriber has received the Simplified Disclosure Prospectus for the offer. The minimum application amount in respect of the bonds is NZ$5,000 and in multiples of NZ$1,000 thereafter.

For further information contact one of the Joint Lead Managers on the contact details above.

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