Unsolicited offer by Zero Commission

15 October 2015

Unsolicited offer by Zero Commission

(Taumarunui – New Zealand) - King Country Energy Limited advises that it has been informed by Zero Commission NZ Limited that Zero Commission intends to write to certain KCE shareholders holding parcels of up to 1,200 shares with an offer to buy their shares at a proposed 20 cent per share (approximately 5%) discount to the current market price.

KCE does not endorse this offer and KCE shareholders should be aware that Zero Commission may make further offers to targeted groups of shareholders in the future.

KCE’s shares are quoted on Unlisted, an online platform to facilitate shareholders trading their shares using a licensed broker. KCE shareholders should refer to the Unlisted website for detailed share trading information at: www.unlisted.co.nz. The King Country Energy code is KCE.

As at close of trading on 13 October 2015, the Unlisted market price for KCE shares was $4.10 per share.

Shareholders are under no obligation to accept any offer or to take any action in respect of the offer from Zero Commission. KCE recommends that shareholders who receive an offer from Zero Commission:

· read Zero Commission’s disclosure document and terms of offer carefully and thoroughly;

· seek independent financial and/or legal advice if they have any questions or are contemplating selling their KCE shares; and

· check the most recent market price for KCE shares on the website www.unlisted.co.nz.

The Financial Markets Authority provides some guidance on unsolicited share offers, such as the potential offer from Zero Commission, at its website http://fma.govt.nz/

Shareholders accepting Zero Commission’s offer should be aware that they are likely to be in the position of being an unsecured creditor of Zero Commission during the period between their shares being transferred to Zero Commission and receiving full payment from Zero Commission.

KCE shareholders considering any offer for their shares should also be aware that Nova Energy Limited, which owns 54.1% of KCE, is currently engaged in a process that may result in the sale of Nova’s KCE shares. KCE expects that, if a sale was to eventuate, then in order to comply with the Takeovers Code the buyer would need to make a full takeover offer for all of the shares in KCE. To date, no takeover notice has been given and there is no takeover offer which is capable of acceptance. Furthermore, there is no guarantee that a takeover will occur and, even if there is a takeover, there is no guarantee as to pricing.

-ENDS-

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