Mr. Chris Castle reports

CHATHAM CONTINUES FINANCING EFFORTS

Chatham Rock Phosphate Ltd.'s board is continuing to explore options to develop the Chatham Rise project and realize value for the investment on behalf of shareholders over a number of years.

As described in the past two management's discussion and analysis quarterly reports, Chatham is currently party to an indicative, non-binding terms sheet where, in substance, it has granted the right to earn in an up-to-75-per-cent direct ownership stake in the project by making capital contributions by assuming responsibility for financing development of the project.

Due diligence is currently under way, and Chatham is in exclusive negotiations under the term sheet until the end of January, 2026.

The party is credible, well resourced and experienced in marine mining investments.

While progress to date is promising and best endeavours are being made by both parties to undertake the transaction, there is no assurance the transaction will proceed, and Chatham must retain sufficient working capital to pursue this transaction or, should it not proceed, pursue an alternative transaction.

Regulatory approvals would also be likely for any transaction of this nature to proceed.

To support Chatham's immediate working capital requirements, Chatham is exploring:

• A short-term loan by a director to its New Zealand operating subsidiary company, Chatham Rock Phosphate (N.Z.) Ltd.;
• A modest capital raising to ensure that value is preserved for shareholders while longer-term and sustainable options for furthering the project are being considered.

Shareholders interested in supporting Chatham at this time should contact Chris Castle to express their interest.

We seek Safe Harbor.