ARC FUNDS LIMITED — Capital/Financing Update 2020

Oct 15, 2020

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Australian Rural Capital Limited – Quoted Options Cancellation Notice

Australian Rural Capital Limited ABN 52 001 746 710 (“ARC” or “the Company”) advises that quoted Options (“ARCO” or “Options”) on issue expired on 31 August 2020. The Options represent the total number of options in the ARCO class and are now cancelled. The Company did not receive any notices of exercise of the Options from Option holders prior to the expiry date.

The Company provides the following relevant information:

Number of cancelled Options	7,914,213
Exerciseprice of the Options	$0.50per Option
Options expirydate	31 August 2020

Clause 5.3 of Appendix 6A to the ASX Listing Rules states that an entity is not required to send a notice to the holder of quoted securities that are about to expire where the options are substantially out of the money (that is, where the closing market price for the underlying security on the trading day of which is 20 business days before the expiry date is less than 50% of the option exercise price and the highest market price at which the underlying security has traded on ASX in the 6 months preceding that trading day is less than 75% of the option exercise price). The Company advises that the first condition was not met as the share price 20 business days prior to the expiry date was $0.30, however the second condition was met, as the Company’s share price did not exceed $0.30 for the 6 month period prior to expiry date.

The Company apologises to the Option holders for this oversight.

ENDS

By order of the Board of Directors.

James A Jackson Executive Chairman October 16, 2020

For Further Details contact:

James Jackson, Executive Chairman Mobile: 0402435762 Email: james.jackson@ruralcapital.com.au

Australian Rural Capital Limited

ABN 52 001 746 710

c/- Broadley Rees Hogan, Level 24, 111 Eagle Street, BRISBANE QLD 4000 GPO Box 635 BRISBANE QLD 4001 phone: (07) 3223 9170