Update regarding the sale of the Pike River coal mine

[10 May 2012]

Update regarding the sale of the Pike River coal mine

PwC Partners John Fisk, David Bridgman and Malcolm Hollis, Receivers of Pike River Coal Limited (In Receivership) today announced Solid Energy New Zealand Limited has completed its due diligence and has signed a sale and purchase agreement for the Pike River Coal Mine.

Mr Fisk says, “We, the Receivers, are pleased with the sale and purchase agreement signed today, as we consider it is the best way forward for all parties.”

Settlement is now expected to take place in July, or later depending on the granting of various ministerial consents, other approvals and documentation giving effect to the agreement relating to possible body recovery between Solid Energy and the Crown set out in a letter entered into between them today.

“We will continue to maintain the mine in a safe and stable condition whilst assisting Solid Energy to work through the conditions of the sale,” concludes Mr Fisk.

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Note to Editors:

A complementary question and answer (Q&A) sheet is available.

Editors may also wish to refer to the media statements issued by Solid Energy New Zealand Limited and the Ministry of Economic Development on behalf of the Government.