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NZX Market Announcement – Widespread Portfolios Market Update

28 February 2011

NZX Market Announcement – Widespread Portfolios Market Update

Asset Swap Transaction

As previously announced to the market with Widespread Portfolios is proposing to undertake an asset swap transaction with Widespread Energy that involves:

· Widespread Portfolios transferring its 10% interest in the Chatham Rise Rock Phosphate project to Widespread Energy;

· Widespread Energy transferring all of its investments other than its 90% interest in the Chatham Rise Rock Phosphate project to Widespread Portfolios; and

· The difference in value between those assets being satisfied by Widespread Energy issuing new shares to Widespread Portfolios,

The Transactions will require shareholder approval in accordance with the NZSX Listing Rules. In connection with these requirements, with Widespread Portfolios has engaged McDouall Stuart Securities Limited to prepare an appraisal report on the Transactions. It is presently intended that a meeting of shareholders will be called before the end of March 2011 to consider the Transactions.

NZX Waiver

In order to pursue the Transactions a waiver has been granted by NZX Limited to Widespread Portfolios from certain requirements of the NZSX Listing Rules. The waiver was necessary due to the related party nature of the Transactions and, in particular, the commonality of directors between Widespread Portfolios and Widespread Energy. The waiver allows the directors of with Widespread Portfolios to pursue the Transactions notwithstanding their related party nature subject to shareholder approval being obtained.

Widespread Energy Offshore IPO and Listing

As discussed in previous announcements, Widespread Energy intends to undertake an offshore capital raising and second listing on a foreign stock exchange. It is presently intended that this capital raising will proceed in Canada and a listing on the TSX market will be sought. The Transactions are an important part of focussing the operations of Widespread Energy ahead of this capital raising and listing.

Mining Concept Studies

Draft reports from the first two mining concept studies are expected to be received this week on the Chatham Rise Rock Phosphate project. Four of the largest dredging companies in the world are presently working on three separate studies. The outcome of these studies will be an important step in determining the viability of pursuing the Chatham Rise Rock Phosphate project as they will provide strong guidance as to whether economic extraction is possible. Announcements will be made in due course on the findings of these studies.

For and on behalf of the Board

Widespread Portfolios Limited

Chris Castle

Managing Director