I thought that only iPad Mini or higher supported the new continuity features???
"Continuity requires an iPhone 5 or later, fourth-generation iPad or newer, iPad mini, or fifth-generation iPod touch".
Apple:
"Continuity features are available on iPhone 5 or later, iPad (4th generation), iPad Air, iPad mini, iPad mini with Retina display and iPod touch (5th generation)".
"Continuity requires an iPhone 5 or later, fourth-generation iPad or newer, iPad mini, or fifth-generation iPod touch".
Apple:
"Continuity features are available on iPhone 5 or later, iPad (4th generation), iPad Air, iPad mini, iPad mini with Retina display and iPod touch (5th generation)".