Pike River Coal Rights Issue Fully Underwritten

1 news release 16 March 2009

Pike River Coal Rights Issue Fully Underwritten

Pike River Coal Limited’s rights issue of $41 million announced on 3 March 2009 will be fully underwritten. The renounceable rights issue is an entitlement to one share at 70 cents with an accompanying bonus option for every five Pike River shares held. The bonus options have a two year term and can be exercised at $1.25 each.

A further $4 million placement on the same terms as the rights issue is being made to a major institution and existing shareholder, AMP Capital Investors, bringing the total equity raising to $45 million.

Andrew McDouall, managing director of McDouall Stuart Securities Limited, the lead manager of the rights issue said “this level of underwriting shows the strong support that exists for Pike River Coal even in the current difficult equity markets”.

The offer is being underwritten by McDouall Stuart Corporate Finance Limited and major shareholder, New Zealand Oil & Gas Limited. Pike River Coal’s chief executive Gordon Ward says “we are delighted that AMP Capital Investors has made a significant additional investment in Pike River and are very pleased that this rights offer will be fully underwritten”.

The offer is expected to open on or about 31 March 2009* and close on or about 17 April 2009*.

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