ARC FUNDS LIMITED — Capital/Financing Update 2017

Mar 16, 2017

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MARKET RELEASE

17 March 2017

Australian Rural Capital Limited

TRADING HALT

The securities of Australian Rural Capital Limited (the “Company”) will be placed in Trading Halt Session State at the request of the Company, pending the release of an announcement by the Company. Unless ASX decides otherwise, the securities will remain in Trading Halt Session State until the commencement of normal trading on Tuesday, 21 March 2017.

Security Code: ARC

Adrian Smythe Manager, Listings Compliance

17 March 2017

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Mr Adrian Smythe Advisor, Listings ASX Compliance Pty Limited 20 Bridge Street SYDNEY NSW 2000 By email: adrian.smythe@asx.com.au

Dear Mr Smythe

REQUEST FOR TRADING HALT : AUSTRALIAN RURAL CAPITAL LIMITED (ASX : ARC and ARCO)

Pursuant to Listing Rule 17.1, Australian Rural Capital Limited ( ARC ) requests a trading halt in both its fully paid ordinary shares ( ASX:ARC ) and its listed options ( ASX:ARCO ), be placed in a trading halt with effect from the commencement of trading on Friday 17 March 2017.

For the purposes of ASX Listing Rule 17.1, and in support of its request, ARC advises that:

• (a) ARC proposes to announce a capital raising, of which it is currently negotiating an underwriting agreement with potential sub-underwriting arrangements;

• (b) ARC wishes the trading halt should remain in place until such time as it makes an announcement to the market in relation to the matters referred to in (a) above or the commencement of trading on Tuesday 21 March 2017, whichever is earlier; and

• (c) ARC is not aware of any reason why the trading halt should not be granted or any other information necessary to inform the market in relation to the trading halt.

Yours sincerely

James Jackson Executive Chairman