CHORUS LIMITED — Share Issue/Capital Change 2013

Oct 10, 2013

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Chorus Limited Level 9 Datacom House 68-86 Jervois Quay P O Box 632 Wellington New Zealand Email: company.secretary@chorus.co.nz

STOCK EXCHANGE ANNOUNCEMENT

11 October 2013

Notification of issue of securities

Chorus Limited has issued 7,070,718 new shares under its Dividend Reinvestment Plan as per the attached notice.

The number of shares has been updated from the number indicated on 3 October.

ENDS

For further information:

Brett Jackson Investor Relations Manager Mobile: +64 (27) 488 7808 Email: brett.jackson@chorus.co.nz

Appendix 3B New issue announcement

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Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Name of entity

Chorus Limited

ABN

152 485 848

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of +securities issued or to be issued Ordinary shares 2 Number of[+] securities issued or to be issued 7,070,718 (if known) or maximum number which may be issued 3 Principal terms of the[+] securities (e.g. if Fully paid ordinary shares ranking equally options, exercise price and expiry date; if with existing ordinary shares partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)

Chorus New Zealand Limited

Appendix 3B – Page 1 of 8

Appendix 3B

New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

4 Do the+securities rank equally in all respects from the+issue date with an existing+class of quoted+securities? If the additional+securities do not rank equally, please state:  the date from which they do  the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment  the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5 Issue price or consideration 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets) 6a Is the entity an+eligible entity that has obtained security holder approval under rule 7.1A? If Yes, complete sections 6b – 6h_in relation_ to the+securities the subject of this Appendix 3B, and comply with section 6i 6b The date the security holder resolution under rule 7.1A was passed 6c Number of +securities issued without security holder approval under rule 7.1 6d Number of+securities issued with security holder approval under rule 7.1A 6e Number of+securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting) 6f Number of+securities issued under an exception in rule 7.2	Yes
	NZ$2.66
	Issue of shares under Chorus’ Dividend Reinvestment Plan
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	7,070,718

• See chapter 19 for defined terms.

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Appendix 3B Page 2

Appendix 3B

Appendix 3B
	New issue announcement
6g If+securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the +issue date and both values. Include the source of the VWAP calculation. 6h If+securities were issued under rule 7.1A for non‐cash consideration, state date on which valuation of consideration was released to ASX Market Announcements 6i Calculate the entity’s remaining issue capacity under rule 7.1 and rule 7.1A – complete Annexure 1 and release to ASX Market Announcements 7 +Issue dates Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12). For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A. Cross reference: item 33 of Appendix 3B. 8 Number and+class of all+securities quoted on ASX (_including_the+securities in section 2 if applicable) 9 Number and+class of all+securities not quoted on ASX (_including_the+securities in section 2 if applicable) 10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)	Rule 2.7, 3.10.3, 3.10.4, 3.10.5 Not applicable Not applicable Not applicable 11 October 2013 Number +Class 396,369,767 Fully paid ordinary shares Number +Class 74,702,524 74,702,524 3,727,616 CFH Equity Securities CFH Debt Securities CFH Warrants The shares rank equally with existing ordinary shares in respect of dividends
	The shares rank equally with existing ordinary shares in respect of dividends

• See chapter 19 for defined terms.

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Appendix 3B Page 3

Appendix 3B

New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Part 2 - Pro rata issue

11 Is security holder approval required? 12 Is the issue renounceable or non‐ renounceable? 13 Ratio in which the+securities will be offered 14 +Class of+securities to which the offer relates 15 +Record date to determine entitlements 16 Will holdings on different registers (or subregisters) be aggregated for calculating entitlements? 17 Policy for deciding entitlements in relation to fractions 18 Names of countries in which the entity has security holders who will not be sent new offer documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7. 19 Closing date for receipt of acceptances or renunciations 20 Names of any underwriters 21 Amount of any underwriting fee or commission 22 Names of any brokers to the issue 23 Fee or commission payable to the broker to the issue 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of security holders 25 If the issue is contingent on security holders’ approval, the date of the meeting	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable

• See chapter 19 for defined terms.

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Appendix 3B Page 4

Appendix 3B

Appendix 3B
	New issue announcement
26 Date entitlement and acceptance form and offer documents will be sent to persons entitled 27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Date rights trading will begin (if applicable) 29 Date rights trading will end (if applicable) 30 How do security holders sell their entitlements_in full_through a broker? 31 How do security holders sell_part_ of their entitlements through a broker and accept for the balance? 32 How do security holders dispose of their entitlements (except by sale through a broker)? 33 +Issue date	Rule 2.7, 3.10.3, 3.10.4, 3.10.5 Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
	Not applicable

• See chapter 19 for defined terms.

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Appendix 3B Page 5

Appendix 3B

New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

34 Type of[+] securities ( tick one )

(a) +Securities described in Part 1

• (b) All other[+] securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

35 If the[+] securities are[+] equity securities, the names of the 20 largest holders of the additional +securities, and the number and percentage of additional +securities held by those holders

36 If the[+] securities are[+] equity securities, a distribution schedule of the additional[+] securities setting out the number of holders in the categories 1 ‐ 1,000 1,001 ‐ 5,000 5,001 ‐ 10,000 10,001 ‐ 100,000 100,001 and over

37 A copy of any trust deed for the additional[+] securities

Entities that have ticked box 34(b)

38 Number of[+] securities for which[+] quotation is sought

39 +Class of +securities for which quotation is sought

• See chapter 19 for defined terms.

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Appendix 3B Page 6

Appendix 3B

New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

40 Do the +securities rank equally in all respects from the +issue date with an existing[+] class of quoted[+] securities?

If the additional[+] securities do not rank equally, please state:

• the date from which they do

• the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

41 Reason for request for quotation now

Example: In the case of restricted securities, end of restriction period

(if issued upon conversion of another +security, clearly identify that other +security)

• 42 Number and[+] class of all[+] securities quoted on ASX ( including the[+] securities in clause 38)

Number + Class

• See chapter 19 for defined terms.

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Appendix 3B Page 7

Appendix 3B

New issue announcement Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Quotation agreement

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the +securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the +securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those +securities should not be granted +quotation.

• An offer of the +securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any +securities to be quoted and that no‐one has any right to return any +securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the +securities be quoted.

• If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the +securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document is not available now, we will give it to ASX before +quotation of the +securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

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Sign here: .......................................................... (Company secretary)

Date: 11 October 2013

Print name: Vanessa Jane Oakley

• See chapter 19 for defined terms.

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Appendix 3B Page 8

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Market Information Services NZX Limited Wellington

Chorus Limited Level 9 Datacom House 68-86 Jervois Quay PO Box 632 Wellington New Zealand

Email: company.secretary@chorus.co.nz

11 October 2013

NOTIFICATION OF ISSUE OF SECURITIES

For the purposes of Listing Rule 7.12.1 Chorus Limited (NZX: CNU ) advises that the following securities have been issued pursuant to its Dividend Reinvestment Plan:

• a) Class of securities ISIN

• b) Number issued

• c) Issue price

• d) Payment

• e) Amount paid up

• f) Percentage of the total class of securities issued

• g) Reason for issue

• h) Specific authority for issue

Ordinary shares

NZCNUE0001S2

7,070,718

$2.66

Cash

Paid in full

• 1.82%

Issue of shares under Chorus’ Dividend Reinvestment Plan

Board resolution dated 25 August 2013;

Dividend Reinvestment Plan;

NZX Class Waiver decision relating to Listing Rule 7.11.1 of the NZX Main Board Listing Rules (issued 8 November 2011)

• i) Terms or details of issue

The shares rank pari passu with existing ordinary shares

• j) Total number of securities of class 396,369,767 after issue

• k) Treasury stock (acquisition only)

• l) Date of issue

Not applicable

11 October 2013

Yours faithfully

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Vanessa Oakley General Counsel & Company Secretary

Chorus Limited