CHORUS LIMITED — Share Issue/Capital Change 2016

Mar 15, 2016

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Chorus Limited Level 10, 1 Willis Street P O Box 632 Wellington 6140 New Zealand

Email: company.secretary@chorus.co.nz

STOCK EXCHANGE ANNOUNCEMENT

16 March 2016

Chorus share sale facility for small shareholders

Chorus is today sending the attached letter to eligible shareholders who held less than 100 shares at 11 March 2016.

The letter details the share sale facility to be made available to those minimum holders who wish to have their shares sold in three months' time, free of brokerage costs.

ENDS

For further information:

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

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Important information: Proposed sale of your minimum shareholding in Chorus Limited ( Chorus )

Dear Shareholder

We have sent this letter to you because as at 11 March 2016 our records show that you are the holder of less than 100 shares in Chorus . The number of shares you hold is shown above.

Following the recent conclusion of regulatory pricing processes and ongoing enquiries from small shareholders about their sale options, the Chorus Board is providing Australian and New Zealand shareholders with less than 100 shares the opportunity to sell their shares through a simple share sale facility. There is no cost of brokerage for participating in this sale facility and Chorus will pay the proceeds to you.

This letter is to notify you that (in accordance with the Second Schedule of Chorus’ constitution and NZX Main Board Listing Rule 8.5) Chorus intends to sell your shares on your behalf if, at 5pm (New Zealand time) on 24 June 2016, you continue to hold less than 100 shares. The sale of the shares is expected to take place as soon as practicable after this date.

Option 1: Do nothing and Chorus will sell your shares on your behalf

If you do not take any action by 24 June 2016, Chorus will instruct a broker to sell your shares on your behalf through the NZX.[1] The price that you receive for your shares will be the average price of all shares sold through the sale facility.

You will receive the proceeds from your shareholding as soon as practicable after the sale of your shares. The proceeds will be deposited into the bank account Computershare has on record for you. You should therefore ensure these details are up to date. If no bank account is recorded you will receive your payment by cheque.

Any tax consequences from the sale of your shares will be your responsibility.

1 If your shares are in an ASX CHESS holding, Chorus may move your shares from the CHESS holding to an issuer sponsored holding for the purpose of the sale facility.

Option 2: Increase your shareholding before 24 June 2016

You may choose to increase your holding to, or above, the 100 share threshold by purchasing additional Chorus shares before 24 June 2016. Chorus is not providing a facility for this and you may have to pay applicable brokerage fees. The transaction would need to be settled prior to 24 June 2016 and be registered in the same holding as your existing shares. If your shareholding is 100 or more shares before 24 June 2016 then your shares will not be sold.

Participation in Chorus’ Dividend Reinvestment Plan may also assist some shareholders in meeting the threshold if your holding is already close to 100 shares. You will need to have registered for the Dividend Reinvestment Plan before 5pm (New Zealand time) on Wednesday 23 March.

Option 3: Notify Computershare if you wish to retain your shares

If you wish to retain your existing holding of Chorus shares, you must complete and return the attached Retention Form so that it is received by Computershare by 5pm (New Zealand time) on 24 June 2016 .

Chorus may, before a sale is effected under the sale facility, revoke a notice given or suspend or terminate the operation of this facility, either generally or in specific cases. Chorus reserves the right to change any of the dates referred to in this information by notice to the NZX and ASX.

If you are in doubt, or if you require information regarding the possible taxation implications from participation in the sale facility, please consult your legal, financial or taxation advisor.

If you require further information about your shareholding, please contact Computershare.

New Zealand Computershare Investor Services Limited Private Bag 92119 Auckland 1142 New Zealand

Australia

Computershare Investor Services Pty Limited GPO Box 3329 Melbourne VIC 3001 Australia

Level 2,159 Hurstmere Road Takapuna, Auckland Telephone: +64 9 488 8777 (from outside New Zealand) Fax: +64 9 488 8787 Email: chorus@computershare.co.nz

Yours sincerely

Chorus Limited

CHORUS LIMITED

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MINIMUM HOLDING RETENTION FORM

Name and address

Shareholder Number CSN/SRN

Number of shares held as at 11 March 2016

Only complete this form if you DO NOT want your Chorus shares to be sold under Chorus Limited’s share sale facility.

Your Retention Form must be received by Computershare before 24 June 2016

I/We wish to continue to hold fewer than 100 shares in Chorus Limited. Dated and executed the day of 2016	I/We wish to continue to hold fewer than 100 shares in Chorus Limited. Dated and executed the day of 2016	I/We wish to continue to hold fewer than 100 shares in Chorus Limited. Dated and executed the day of 2016	I/We wish to continue to hold fewer than 100 shares in Chorus Limited. Dated and executed the day of 2016
	FOR AN INDIVIDUAL/ATTORNEY AND JOINT SHAREHOLDERS		FOR A COMPANY
	Your signature(s) Your signature(s)		Director/Duly authorised signatory Director/Duly authorised signatory

Contact Details: Please provide your contact details below. Contact Name: Telephone (Mobile) Daytime Number Email Address:

INSTRUCTIONS FOR COMPLETION OF THIS FORM

• Notification by a shareholder that is a company must be signed on behalf of the company by a person/persons duly authorised for that purpose.

• Joint shareholders must all sign the Retention Form.

• This Retention Form may be executed by an attorney, in which case the relevant Power of Attorney, if it has not already been noted by Computershare, must accompany the Retention Form and the certificate printed overleaf must be completed. If the Power of Attorney has been noted by Computershare, please state this under the signature of the attorney.

• When completed, send this Retention Form to Computershare (details below). Hand deliver, post, fax or email the signed Retention Form which must be received by Computershare before 24 June 2016 . Please allow sufficient time for posting.

New Zealand Australia Computershare Investor Services Limited Computershare Investor Services Pty Limited Private Bag 92119 GPO Box 3329 Auckland 1142 Melbourne VIC 3001 New Zealand Australia Level 2,159 Hurstmere Road Takapuna, Auckland +64 9 488 8777 (from outside New Zealand) Fax: +64 9 488 8787 Email: chorus@computershare.co.nz

CERTIFICATE OF NON-REVOCATION OF POWER OF ATTORNEY/AGENT

Please complete the following if you are acting on behalf	of someone for whom you hold Power of Attorney/Agent.	of someone for whom you hold Power of Attorney/Agent.
Select representation: Power of Attorney [ ] Agent [ ]
I,	(Name of Attorney/Agent)
of,	(Address and Occupation of Attorney/Agent)
HEREBY CERTIFY THAT:
1. As Attorney/Agent of	under a deed/agreement dated	(dd/mm/yy)
given to me by him/her/them.

1.	As Attorney/Agent of under a deed/agreement dated (dd/mm/yy) given to me by him/her/them.
2.	I have executed the application to sell shares printed on this Retention Form as Attorney/Agent pursuant to the
	powers conferred on me by that Power of Attorney/Agreement.

2.	I have executed the application to sell shares printed on this Retention Form as Attorney/Agent pursuant to the powers conferred on me by that Power of Attorney/Agreement.
3.	At the date of this certifcate I have not received any notice or information of the revocation of that appointment,
	whether by the death or dissolution of the donor or otherwise.

Signed at	this	day of	2016
Signature of Attorney/Agent