ARC FUNDS LIMITED — Capital/Financing Update 2021

Jun 9, 2021

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10 June 2021

Australian Rural Capital successfully completes Entitlement Offer, raising approximately $3.127 million

Australian Rural Capital Limited (ASX:ARC) ( ARC or the Company ) is pleased to announce the successful completion of a 1 for 1 pro rata fully underwritten non-renounceable entitlement offer ( Entitlement Offer ) of new shares in ARC ( New Shares ) announced on 10 May 2021.

The Entitlement Offer closed at 5.00pm (AEST) on Monday, 7 June 2021. ARC received valid applications from 90 eligible shareholders for approximately 9.1 million New Shares, representing a participation rate of approximately 61%.

Applications by eligible shareholders for additional New Shares under the Top Up Facility were accepted in full.

The offer was fully underwritten and accordingly, approximately 5.8 million New Shares not taken up under the Entitlement Offer have been allocated to Taylor Collison Limited as lead manager and underwriter of the Entitlement Offer.

These shares have been or will be placed with clients of Taylor Collison Limited who acted as the subunderwriters to the offer, including Capital H Management Pty Ltd ( Capital H ).

Capital H have been allocated 6,759,921 New Shares (including its entitlement and sub-underwriting allocation) under the Entitlement Offer, which is expected to result in Capital H having an interest of approximately 32.7% in the Company[1] .

Eligible shareholders should confirm the actual number of New Shares allocated and issued to them before trading in such shares, and the sale by any eligible shareholder of New Shares prior to receiving their holding statement is at their own risk.

New Shares issued under the Entitlement Offer will rank equally with existing ARC shares in all respects form the date of issue.

The New Shares issued as part of the Entitlement Offer are expected to commence trading on Wednesday, 16 June 2021.

The proceeds of the Entitlement Offer will be used to fund working capital, investment capital and meet the costs of the Entitlement Offer. Further detail is provided in ARC’s ASX announcement on 2 June 2021.

1 Further details will be provided when Capital H lodges its updated substantial holder notice with the ASX. Australian Rural Capital Limited

ABN 52 001 746 710 c/- Mertons Corporate Services, Level 7, 330 Collins Street, Melbourne VIC 3000 phone: +61 3 8689 9997

B:10366442_2 KHA

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James Jackson, Executive Chairman said “The successful completion of this equity capital raising is a significant milestone in the development of the Company following the distribution of the Namoi Cotton shares to shareholders in February this year.”

“ARC is now in a solid position to pursue growth in the management of funds and to further evaluate and make principal investments. The Company will have cash balances of approximately $3.5 million after costs and expenses of the Entitlement Offer.”

“The Board thanks shareholders for their support in the raising which gives us confidence to continue its initiatives in seeking to create value for our shareholders.”

Enquiries

For any enquiries please call Boardroom Pty Limited, ARC’s Share Registry, on 1300 737 760 or contact your stockbroker, accountant, or professional adviser.

Further information in relation to the Entitlement Offer and Capital H can be found in the Pro-Rata Non-Renounceable Entitlement Offer Document lodged with the ASX on 12 May 2021 and subsequent announcement made to ASX on 2 June 2021.

ENDS.

By order of the Board of Directors.

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

Mark Licciardo, Company Secretary Phone: +61 3 8689 9997 Email: markl@mertons.com.au

Australian Rural Capital Limited ABN 52 001 746 710

c/- Mertons Corporate Services, Level 7, 330 Collins Street, Melbourne VIC 3000 phone: +61 3 8689 9997

B:10366442_2 KHA