CHORUS LIMITED — Capital/Financing Update 2020

Jun 30, 2020

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Chorus Limited Level 10, 1 Willis Street P O Box 632 Wellington New Zealand

Email: company.secretary@chorus.co.nz

STOCK EXCHANGE ANNOUNCEMENT

1 July 2020

Notification of issue of CIP securities

Chorus Limited has issued further Crown Infrastructure Partners (CIP) securities as per the attached notice.

Authorised By:

David Collins Chief Financial Officer

ENDS

For further information:

Steve Pettigrew Head of External Communications Mobile +64 (27) 258 6257 Email: Steve.Pettigrew@chorus.co.nz

Brett Jackson Investor Relations Manager Phone: +64 4 896 4039 Mobile: +64 (27) 488 7808 Email: Brett.Jackson@chorus.co.nz

Updated as at 8 May 2019

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Capital Change Notice

Section 1: Issuer information
Name of issuer	Chorus Limited
NZX ticker code	CNU
Class of financial product	CIP2 Equity Securities (unquoted)
ISIN	N/a
Currency	NZD
Section 2: Capital change details
Number issued/acquired/redeemed	6,476,172
Nominal value (if any)	N/a.
Issue/acquisition/redemption price per security	NZ$1.000000 per CIP2 Equity Security.
Nature of the payment (for example, cash or other consideration)	Cash.
Amount paid up (if not in full)	N/a.
Percentage of total class of Financial Products issued/acquired/redeemed/ (calculated on the number of Financial Products of the Class, excluding any Treasury Stock, in existence)	4.76%
For an issue of Convertible Financial Products or Options, the principal terms of Conversion (for example the Conversion price and Conversion date and the ranking of the Financial Product in relation to other Classes of Financial Product) or the Option (for example, the exercise price and exercise date)	CIP2 Equity Securities are redeemable preference shares carrying no right to vote at meetings of holders of ordinary Chorus shares, but entitle the holder to a right to a repayment preference on liquidation. Dividends will become payable on a portion of the CIP2 Equity Securities from 2030 onwards, with the portion of CIP2 Equity Securities that attract dividends increasing over time. Chorus may redeem CIP2 Equity Securities at any time: • by cash payment of the total issue price of CIP2 Equity Securities to be redeemed; or • by the issue of ordinary Chorus shares of a value equal to the total issue price of the CIP2 Equity Securities to be redeemed (with those ordinary Chorus shares valued at a 5% discount to the 20-day VWAP for Chorus shares traded in ordinary trading on NZX). In the event that the Network Infrastructure Project Agreement dated 26 January 2017 (NIPA2) between

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			Chorus and Crown Infrastru CIPi titd ith f	cture Partners Lim til b
			() s ermnae, eer Chorus, a serious health an challenge by Chorus to the liquidated damages, service material breach liquidated d in the event that the Chorus dividend on the CIP2 Equity dividend is not paid, a holde Securities can elect to:	r a maera rea d safety event, or enforceability of default payments amages under NI Board resolves to Securities but tha r of CIP2 Equity
Reason for issue/acquisition/redemption and specific authority for issue/acquisition/redemption/ (the reason for change must be identified here)			The funds are to be used by Chorus in the construction of the Ultra-Fast Broadband network in New Zealand. The CIP2 Equity Securities have been issued pursuant to: • the terms of the subscription agreement between Chorus and CIP dated 26 January 2017 and amended 30 August 2017 (UFB2 Subscription Agreement); • a call notice issued by Chorus to CIP on 29 June 2020 pursuant to the terms of the UFB2 Subscription Agreement; and • a Chorus Board resolution passed on 24 August 2018.
Total number of Financial Products of the Class after the issue/acquisition/redemption/Conversio			142,631,045 CIP2 Equity Securities (unquoted). No CIP2 Equity Securities are held as treasury stock.

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n (excluding Treasury Stock) and the total number of Financial Products of the Class held as Treasury Stock after the issue/acquisition/redemption.
In the case of an acquisition of shares, whether those shares are to be held as treasury stock	N/a.
Specific authority for the issue, acquisition, or redemption, including a reference to the rule pursuant to which the issue, acquisition, or redemption is made	Board resolution passed on 24 August 2018. The CIP2 Equity Securities have been issued under listing rule 4.5.
Terms or details of the issue, acquisition, or redemption (for example: restrictions, escrow arrangements)	The terms of issue are as set out in the UFB2 Subscription Agreement. Further information regarding the terms of the CIP2 Equity Securities is set out in the summary of CIP2 Securities which is available athttps://company.chorus.co.nz/reports.
Date of issue/acquisition/redemption	30 June 2020
Section 3: Authority for this announcement and contact person
Name of person authorised to make this announcement	Elaine Campbell General Counsel & Company Secretary
Contact person for this announcement	Brett Jackson Investor Relations Manager
Contact phone number	+64 4 896 4039 +64 27 488 7808
Contact email address	Brett.Jackson@chorus.co.nz
Date of release through MAP	1 July 2020

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