ARC FUNDS LIMITED — Capital/Financing Update 2015

Sep 1, 2015

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SUCCESSFUL COMPLETION OF CAPITAL RAISING

Australian Rural Capital Limited ( ARC or the Company ) are pleased to announce that a total of 7,004,884 newly listed options ( Options - ASX code: ARCO) were applied for under the entitlement offer ( Offer ) of 9 options for every 10 ARC Shares held under a Prospectus dated 31 July 2015.

This represents a take-up of 87.2% of the available Options, leaving a shortfall of 1,025,979 Options from the entitlement component of the issue.

ARC received a significant number of applications for Additional Options, as defined in the Prospectus, and will be allotting a total of 875,979 Additional Options on Friday 4 September 2015.

ARC confirms that all Directors took up their full allocation of Options as intended and disclosed on page 7 of the Prospectus.

ARC received strong additional support for the Offer from its Executive Chairman, James Jackson, and the non-conflicted Directors of ARC have resolved to allot 150,000 Additional Options to interests associated with Mr. Jackson, subject to shareholder approval at the 2015 Annual General Meeting.

If shareholders approve the issue of Additional Options to James Jackson, the shortfall of 1,025,979 Options will have been fully allocated. In the event that shareholders do not approve the allotment to Mr. Jackson, the Directors intend to place the Additional Options with other parties as allowed under the Prospectus prior to 28 November 2015.

ARC will receive immediate cash proceeds of $394,043 (before costs).

The Directors of ARC wish to thank shareholders of the Company for their strong support of the Options issue and continue to investigate further investment opportunities within the chosen agribusiness area.

For further information:

James Jackson Executive Chairman 0402 435 762

Andrew Brown Director/Company Secretary 0418 215 255

Australian Rural Capital Limited ABN 52 001 746 710 Suite 7.06, 2-14 Kings Cross Road, POTTS POINT NSW 2011 GPO Box 4870 SYDNEY NSW 2001

phone: (02) 9380 9001 info@ruralcapital.com.au