GENERAL: PGC: Torchlight - Media Release Clarification

28 Jun 2010 9:54 am

PGC 28/06/2010 GENERAL

REL: 0954 HRS Pyne Gould Corporation Limited

GENERAL: PGC: Torchlight - Media Release Clarification

28 June 2010

Torchlight - Media Release Clarification

On Friday 25 June, PGC announced through the NZX a media release made by a subsidiary of PGC, Torchlight Investment Group. That media release referred to a $100m loan that one of the investment funds managed by Torchlight Investment Group had arranged for South Canterbury Finance.

Certain statements in the print media over the weekend have misreported that media release by stating or implying that a subsidiary of PGC has made a loan of $100m to SCF. That is incorrect.

The correct position is that an investment fund managed by Torchlight Investment Group has arranged the $100m loan to SCF. A number of investors have invested in this fund which has a variety of investments including a minority stake in the loan. PGC's total investment in the fund is $15m.

We note that the Torchlight Investment Group's media release of Friday stated:

"Torchlight considers the funding facility an excellent investment for the Fund. "Our facility, being secured ahead of other charges under the Trust Deed, is particularly robust, and our investment is well secured and profitable"."

Jeff Greenslade CEO End CA:00196600 For:PGC Type:GENERAL Time:2010-06-28:09:54:35

More announcements for PGC