Revaluation Update

PRESENTED BYAndrea Lemmon – Executive Manager Funds Management

RFM Proposal – Uniting and listing three RFM funds 1

RFM Now

• RFM commenced in 1997 as a boutique fund and asset manager specialising in the rural property sector

• As at December 2012 had $302m agricultural assets under management

• Manages assets in NSW, SA, Vic, Tas and WA

• Responsible entity for ten agricultural investment funds, three of which will receive proposals for a restructure shortly

Good Assets and Good PeopleChicken Income Fund Australian Wine FundRiverBank

Funds snapshot

*RFM Poultry has a grower contract with Baiada

RFM RiverBank (RBK)

Chicken Income Fund (CIF)

Australian Wine Fund (AWF)

Key Assets Almond orchards and water entitlements Poultry growing farms Vineyards

Asset Value $92m $107m $42m

Location Hillston, NSW Griffith, NSWLethbridge, Vic

Barossa Valley, Coonawarra & Adelaide

Hills, SAGreat Western, Vic

Commencement 2005 2003 2000

Number of unit holders 1,027 1,854 1,411

Key tenant Select Harvest RFM Poultry* Treasury Wine Estates

Key headline lease rate 10% 10% 9%

Lease term 17 years 14 years 9 years

RFM Funds unitholders

• Average investor 65 years old

• 70% are aged between 53 and 77

• Super funds (inc) SMSFs >50 per cent

• Postcode analysis weighted towards urban locations

• Therefore, key inferences about investor priorities:

– Self funded retirees seeking income stability, low risk

– Simplicity

– Liquidity

Aligning our business with unitholders

1. High quality assets but antiquated structures

2. All three funds are currently illiquid with no market for their units

3. Funds management environment has changed since funds were established (GFC)

4. Partial asset sales unsuitable

5. RBK and CIF have debt amortisation requirements

6. AWF requires greater scale

Solution

1. Reorganise RBK, AWF and CIF to leasing operations

2. Unite RBK, CIF and AWF

3. Create Australia’s first diversified Agricultural Real-Estate Investment Trust (Ag-REIT) – focused on generating stable income from leasing agricultural property to quality tenants

4. List on ASX November

Uniting and listing the fund delivers

a) Liquidity

b) Greater access to capital markets

c) Income stability

d) Diversification

e) Economies of scale (lower costs)

f) Future growth (rental increases, acquisitions and greater trading volumes)

DisclaimerThis presentation has been prepared by Rural Funds Management Ltd (RFM) AFSL 226701.

RFM has prepared this presentation based on information available to it. Although all reasonable care has been taken to ensure that the facts stated and opinions given in the presentation are fair and accurate, the information to be provided in this presentation has not have been independently verified. Accordingly, no representation or warranty, expressed or implied is made as to the fairness, accuracy, completeness or correctness of the information and opinions contained in the presentation.

Whilst RFM has taken all reasonable care in producing the information in the presentation, subsequent changes in circumstances may occur at any time and may impact on the accuracy of the information. Neither RFM or its directors or employees guarantee the success of the project including any return received by investors in the Fund.The presentation is confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any person or published, in whole or in part, for any purpose.

The information contained in the presentation is by way of general summary only and has been prepared without taking into account any person’s individual objectives, financial situation or needs. Before making any decisions regarding their investment in the Fund a person should consider the appropriateness of the information to their individual objectives, financial situation and needs and if necessary seek advice from a suitably qualified professional.