ELDERS LIMITED — Capital/Financing Update 2011

Mar 16, 2011

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Shareholding in HiFert

17 March 2011

Elders (ASX:ELD) advises it has entered an agreement for the divestment of its interest in wholesale fertiliser distributor HiFert Pty Limited and enabled more competitive fertiliser sourcing arrangements.

Elders’ 50% indirect interest in HiFert had previously been classified as non-core and outside its strategic focus. The interest, which is held through Elders’ 50% shareholding in HiFert’s parent company ELF Australia Pty Limited (ELF - a 50:50 joint venture between Elders and Landmark Rural Holdings Limited), has been subject to a longstanding sales process which has hitherto been unsuccessful and has no foreseeable prospects of completion.

Elders wishes to cease being a shareholder in ELF and the attendant commitments this involves.

As a result of an agreement between Elders, ELF and Agrium Inc, ELF has granted Agrium a call option to purchase its 100% shareholding in HiFert.

The option is exercisable by Agrium within 90 days and has been granted in return for nominal consideration, a price which recognises the estimated value of HiFert’s net assets. Completion of sale under the option agreement is conditional on regulatory and other approvals being obtained by 31 December 2011.

If exercised, the call option will see Elders exit its interest in HiFert.

Elders will impair the carrying value of its shareholding in HiFert by approximately $10.6 million to align book value to that anticipated by the option agreement. This impairment will be recognised in Elders’ 2011 first half financial results as a non-recurring item. As HiFert had previously been recognised as an asset held for sale, the option agreement, proposed sale and impairment have no implications for Elders’ guidance on underlying profit. Guidance on underlying profit remains unchanged and continues to be supported by seasonal and trading conditions.

As part of the arrangements, Elders has been released from its fertiliser sourcing obligations under the ELF Shareholders Agreement, enabling Elders to source fertiliser independent of ELF.

Elders Managing Director Malcolm Jackman said “the outcome is that Elders now has greater, and more flexible, fertiliser sourcing options. With the winter cropping season approaching we are moving to realise the benefits this confers for our company and our clients”.

“With the seasonal conditions for winter cropping being highly favourable to date, we are ready for the strong anticipated demand for fertiliser. Growers can count on Elders as a reliable and competitive supplier for their needs.”

Further Comment: Malcolm Jackman 0439 642 876 Chief Executive Officer Further information: Don Murchland 0439 300 932 General Manager, Investor and Corporate Relations Manager

Elders Limited ABN 34 004 336 636 Registered office: Level 3, 27 Currie Street, Adelaide, South Australia 5000. Postal Address: GPO Box 551, Adelaide, South Australia 5001.

Telephone: (08) 8425 4000 Facsimile: (08) 8410 1597