ARC FUNDS LIMITED — AGM Information 2016

Oct 19, 2016

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ARC Update for Shareholders

Following our Annual General Meeting in Brisbane on Friday 14 October 2016, we wish to outline our objectives and the proposed group structure envisaged to facilitate our growth plans in a simple presentation.

Objectives for 2017

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1. Support the capital restructuring process at Namoi Cotton and consolidate our investment to maximise our value for ARC shareholders.

2. Seed fund and raise external equity capital into Australian Rural Capital Investor Ltd (ARCI), as our holding entity for agristructure assets and operations and commence investing.

3. Establish a Trust entity (ARCT) to be managed by Australian Rural Capital Management (ARCM) and to invest alongside ARCI in the appropriate real land assets when required.

4. Develop the ARC business model to be cash-flow neutral, sourcing revenue streams from the sourcing of assets and operations and managing these within the ARC group.

Proposed Group Structure

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Progress to Date

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• Custodian appointed to ARCM

• Currently working on a beef industry consolidation opportunity which fits as seed assets for both ARCI and ARCT

• Evaluating opportunities in sugar, grains and pulses and nuts for ARCI

• Commenced discussions with brokers and potential funding partners

Further Shareholder enquiries please contact Mr James Jackson, Executive Chairman on 0402 435 762 or james.jackson@ruralcapital.com.au

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