NZX Waiver of Listing Rule 9.1.1

18 March 2010

Dorchester Pacific advises that it has refinanced the Emerald Hotel in Gisborne and in doing so has relied on the NZX Waiver of Listing rule 9.1.1 issued on 12 March 2010.

At last year’s AGM Dorchester announced its intention to replace the first mortgage over the Emerald Hotel of $4.5m previously held by NZ Guardian Trust.

Executive Director Paul Byrnes commented; “With cash collections a little better than expected we have reduced the mortgage to $3.5m at an interest rate of 7.5% p.a. compared to the previous interest rate of 10% p.a. This is now the only prior security on our 4 hotel property positions compared to approximately $20m of prior security on these positions a year ago. In the meantime operating performance from the hotels has been significantly improved."

As previously advised Dorchester Pacific relied on an earlier NZX Waiver of Listing Rule 9.1.1 issued on 4 February 2009 in completing purchases of the Goldridge Hotel (Queenstown), One Riccarton Road Parkview Hotel (Christchurch) and the Emerald Hotel (Gisborne) over the last year.