RIGHT: PRC: Pike River's NZ$10 Million Placement Strongly Supported

21 Apr 2010 12:19 pm

PRC 21/04/2010 RIGHT

REL: 1219 HRS Pike River Coal Limited

RIGHT: PRC: Pike River's NZ$10 Million Placement Strongly Supported

PIKE RIVER COAL'S NZ$10 MILLION PLACEMENT STRONGLY SUPPORTED

Pike River Coal Limited advises that applications for its $10 million placement have been closed fully subscribed.

Lead Managers international investment bank UBS and McDouall Stuart Securities have advised there was strong interest from a wide range and number of institutional investors in participating in the placement.

Settlement and issue of the new shares will occur on Friday 23 April 2010 subject only to usual underwriting/firm commitment conditions. The issue will complete the first part of the underwriting commitments of UBS, McDouall Stuart Group, and NZOG announced yesterday.

When completed, the placement will bring several new institutional investors onto Pike River Coal's share register. Cornerstone shareholder, New Zealand Oil & Gas Limited (NZOG), and Indian customer and shareholder, Gujarat NRE Limited. NZOG and Gujarat NRE will also participate in the placement at their current shareholding level.

As advised to the market yesterday, the underwriting of the $40 million Rights Issue is conditional upon shareholder approval of the funding arrangements with NZOG which will be voted on at a shareholders' meeting to be held in Wellington on 7 May 2010

AMENDMENT TO RIGHTS ISSUE TIMETABLE Pike River Coal Limited advises that the Rights Issue timetable has been amended from that contained in its initial announcement of yesterday with regards to the $10 million placement of shares and an underwritten $40 million renounceable pro rata Rights Issue to shareholders and optionholders. The dates below reflect those contained in the Appendix 7 and Appendix 3B filed with NZX and ASX respectively.

TIMETABLE (all dates indicative - see Note 1) Rights trading on ASX commences 23 April 2010 Record date 30 April 2010 Opening date of Right Issue offer 3 May 2010 Rights trading on NZX commences 3 May 2010 Shareholders' meeting 7 May 2010 Rights trading on ASX ceases 12 May 2010 Rights trading on NZX ceases 17 May 2010 Closing date of offer 19 May 2010 Allotment date 21 May 2010

Note 1 These dates are subject to change and are indicative only. Pike River reserves the right to amend this timetable without prior written notice, subject to the respective Listing Rules of the NZSX and the ASX and relevant legislation, although an announcement of any changes will be made on the NZSX and the ASX. A full copy of the timetable will appear in the Prospectus.

A prospectus for the Rights Issue was lodged with the Companies Office for registration on 20 April 2010. A copy of the prospectus and an accompanying entitlement and acceptance form is expected to be mailed to shareholders and optionholders on 3 May 2010, and will shortly be available to view online at www.pike.co.nz.

The notice of meeting for the meeting to be held on 7 May 2010 will also be announced and available shortly.

Ends End CA:00194005 For:PRC Type:RIGHT Time:2010-04-21:12:19:45

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