ALLOT: PRC: Issue of Securities

24 May 2010 8:30 am

PRC 24/05/2010 ALLOT

REL: 0830 HRS Pike River Coal Limited

ALLOT: PRC: Issue of Securities

ISSUE OF SECURITIES Announcement in terms of listing rule 7.12.1

Please be advised of an issue of securities as follows;

(a) Class of Security - NZOG Convertible Bonds (unlisted). (b) Number issued - 578 (c) The nominal value and issue price - US$50,000 per NZOG Convertible Bond (d) Consideration. Payment was in cash. (e) Fully paid up. (f) The percentage of the total class of securities issued - 100% (g) The reason for issue - Funds raised will primarily be used to refinance the Liberty Harbour convertible bond facility. (h) The specific authority for the issue - Directors' resolution of 21 May 2010. (i) The terms or details of the issue - Interest: will be paid on the NZOG Convertible Bonds at a rate of 10% per annum, calculated quarterly in arrears for the three year term.

Conversion: The NZOG Convertible Bonds will be convertible at the option of the holder in whole or in part, at any time after issue into that number of fully registered and freely tradeable ordinary shares of the Company calculated as (i) the outstanding principal amount of the NZOG Convertible Bonds (US$28,900,000) divided by (ii) the conversion price for the NZOG Convertible Bonds, which is determined as follows:

The Conversion Price is US$0.84760709.

At this Conversion Price of US$0.84760709 the US$28,900,000 of NZOG Convertible Bonds would convert to 34,095,987 Ordinary Shares in the Issuer.

At the exchange rate of NZ/US $0.70 the Conversion Price of US$0.84760709 converts to an issue price of NZ $1.21.

The Conversion Price is adjusted for subsequent issues of securities as detailed further in the Information Memorandum announced by PRC to ASX on 21 May 2010.

Date of maturity: 12 March 2012

Security: First ranking secured debt securities.

For further details of the terms of the NZOG Convertible Bonds please refer to the Information Memorandum announced by PRC to ASX on 21 May 2010.

(j) Total number of listed securities in existence after the issue - 404,781,367 Ordinary Shares; Options (2011) 64,281,875. (k) N/a (l) Date of issue - 21 May 2010. End CA:00195213 For:PRC Type:ALLOT Time:2010-05-24:08:30:42

More announcements for PRC