ARC FUNDS LIMITED — Capital/Financing Update 2007

Nov 25, 2007

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ASX Release Vineyard Acquisition & Fundraising

Key points

• CKP has signed an agreement to acquire the Woodstock Road Vineyard in Langhorne Creek, South Australia;

• The acquisition is supported by a fully underwritten renounceable rights issue;

• � The acquisition and fundraising are both important steps in the Board’s growth and capital management strategies recently outlined at the Annual General Meeting.

Acquisition of Woodstock Road Vineyard

Cheviot Kirribilly Vineyard Property Group (“CKP”) is pleased to announce that it has agreed to acquire its first vineyard since listing in May 2006.

The Woodstock Road Vineyard in Langhorne Creek, South Australia is approximately 67 hectares (41 hectares currently planted) and its grapes are fully contracted to a major wine company for 5 years.

CKP’s stated strategic objective is to seek growth that delivers the benefits of scale and purchasing power and diversification across a number of areas including client and contract risk. The Board believes that the acquisition of the Woodstock Road Vineyard delivers these benefits given the longevity of the contract with a wine company that CKP does not currently deal with.

Over the past 18 months, CKP’s asset manager, Cheviot Asset Management, has been actively pursuing wine industry assets that meet CKP’s investment hurdle rate of 10% pre-tax return to investors, however the opportunities have been limited at the right value.

The Managing Director, Cheviot Asset Management, Michelene Hart said “This vineyard, whilst relatively small, is a high quality asset with an excellent grape contract in place that improves client exposure and enables CKP to leverage the existing Langhorne Creek infrastructure in an area that is well known to our viticulture manager and Board. It is an exciting first step in delivering the Board’s growth plans”.

Consistent with the Board’s investment objectives to enhance returns to investors by leveraging gearing opportunities the acquisition is to be funded by a mix of debt and equity.

The acquisition is expected to settle in January 2007.

Cheviot Kirribilly Vineyard Property Trust - ARSN 118 614 047 Cheviot Kirribilly Vineyard Property Limited - ACN 117 194 475

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CKP – ASX Release – Vineyard Acquisition and Fundraising

Fundraising

CKP has today signed an Underwriting Agreement with Tidewater Asset Management Pty. Limited (“TAM”) to underwrite a rights issue to raise $3.18 million. The equity will be used to fund the Woodstock Road acquisition as well as to support future growth and capital management activities.

The rights issue will be renounceable and new securities will be issued at $1.20, which represents an 11% discount to the Volume Weighted Average Price of CKP securities over the last sixty business days. Given the illiquid nature of CKP securities and the size of the fund, the Board considers that the price and underwriting cost is appropriate. The new securities will not rank for the interim distribution for the six months to 31 December 2007, which is expected to be announced on or before 18 December 2007.

The Agreement has provided certainty in funding for the acquisition of the Woodstock Road Vineyard whilst providing all current investors with the opportunity to participate in the equity raising. The Managing Director, Cheviot Asset Management, Michelene Hart said “the Underwriting Agreement allows CKP to acquire the Woodstock Road Vineyard and provides additional capital which will enable the Board to pursue a more active capital management program.”

The Underwriter, TAM, is a wholly owned subsidiary of Tidewater Investments Limited (ASX: TDI) who recently agreed to acquire CKP’s asset manager, Cheviot Asset Management from its current owner Cheviot Bridge (due to settle on 30 November 2007).

The Chairman of Cheviot Kirribillly Vineyard Property Group, Mr Paul Batchelor said “the Underwriting Agreement demonstrates the value of CKP’s association with Tidewater Investments. Tidewater has quickly indicated it’s commitment to CKP’s growth strategy by agreeing to participate and underwrite in this important equity issue.”

The Board expects that the Offer Document and Entitlement Notification will be available in the next two weeks

26 November 2007

Enquiries:

Michelene Hart – Managing Director, Cheviot Asset (02) 8080 0363 Management

About Cheviot Kirribilly Vineyard Property Group

Cheviot Kirribilly Vineyard Property Group (CKP) is the only listed vineyard property group that owns and operates vineyards in Australia. It operates in a tax efficient stapled structure and has $46 million in assets under management, including 857 hectares of high quality, modern vineyards.

CKP is backed by an experienced management team with a track record of delivery and has a strategy to grow and diversify agricultural and commercial risk over the medium term. Management is provided through Cheviot Asset Management (CAM) and Kirribilly Viticulture.

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