ELDERS LIMITED — Capital/Financing Update 2011

May 2, 2011

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Company Announcements Office Australian Securities Exchange

Preliminary Discussions concerning Sandalwood Assets

Elders (ASX:ELD) confirms, following receipt of a proposal from TFS Corporation Ltd (TFS), that it is engaged in preliminary discussions with TFS for the divestment of its Sandalwood interests and associated assets.

The preliminary discussions will explore the potential involvement, if appropriate, of TFS in the management of various Sandalwood managed investment schemes currently managed by Elders. This includes the Sandalwood components of the Diversified Forestry Projects.

An indicative non-binding Term Sheet has been agreed . Any transaction contemplated by the Term Sheet remains contingent on the satisfaction of a number of requirements including mutual due diligence, any necessary approvals by investors in the various Indian Sandalwood and Australian Sandalwood managed investment schemes currently managed by Elders and other conditions customary to a transaction of this nature. No assurance is given by the Company that the discussions will result in a transaction.

In keeping with its commitment to timely and full continuous disclosure to the ASX and investors, Elders will advise of material developments as they occur.

Peter Hastings Company Secretary

Elders Limited ABN 34 004 336 636 Registered office: Level 3, 27 Currie Street, Adelaide, South Australia 5000. Postal Address: GPO Box 1176, Adelaide, South Australia 5001. Telephone: (08) 8425 4000 Facsimile: (08) 8410 1597