Clarification of Resolution at EGM

5 February 2009

Dorchester Pacific today sought to reassure investors that there is no risk of the company being placed into liquidation at the Special Meeting of shareholders to be held on 17 February 2009.

Chairman, Mr. Barry Graham, said:

“We feel obliged to convene this Special Meeting because a resolution to liquidate Dorchester was requested in July 2008 by the Shareholders Association which at that time had solicited written support from in excess of 5% of shareholders.”

“However, since Dorchester Finance’s Deferred Repayment Plan was overwhelmingly approved on 17 December 2008, the Shareholders Association has withdrawn its support for the resolution to liquidate Dorchester Pacific.”

Mr. Graham commented:

“The Directors are of the view that appointing a liquidator is not in the best interests of the company. We have discussed the proposed resolutions with some of our major shareholders, who in total hold 44% of the shares in Dorchester. They have confirmed that they will vote against the resolution which requires 75% approval of shareholders and therefore it will clearly fail.”

For more information please go to the following links
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10554970

http://www.nbr.co.nz/article/dorchester-pacific-shareholders-vote-liquidation-40336


Paul Byrnes
Executive Director
Dorchester Pacific Limited

ENDS