ELDERS LIMITED — Capital/Financing Update 2011

Feb 20, 2011

==> picture [581 x 94] intentionally omitted <==

21 February 2011

Company Announcements Office Australian Securities Exchange

Further update on impact of recent weather events and trading

==> picture [11 x 15] intentionally omitted <==

==> picture [11 x 15] intentionally omitted <==

==> picture [11 x 15] intentionally omitted <==

==> picture [11 x 14] intentionally omitted <==

==> picture [11 x 14] intentionally omitted <==

• No change to guidance on full year underlying earnings

• Non-recurring items anticipated for cyclone damage to plantations; value yet to be determined. Expected to range between $8 million to $14 million.

• Rural Services Network operating well year to date and up on pcp

• Rural Services Trading impacted unfavourably by downgraded crop position on Elders Toepfer Grain and weather disruption to feedlots

• Automotive impacted by reduced Australian vehicle build

As foreshadowed in previous Elders’ advice to the ASX of 12 January and 7 February 2011, the Company’s results for the current period are subject to the financial effects of the recent extreme weather events in eastern and northern Australia.

Elders is now in a position to provide a further update on the anticipated impact of these events and recent trading, having received preliminary assessments of cyclone impacts as well as finalised financial accounts for the month of January.

Summary of impact and implications for earnings expectations

Explanation of the impact of the recent extreme weather events on Company operations is provided in more detail below but can be summarised as follows:

• Rural Services: Australian Network is trading strongly with immaterial sales and cost impact from weather events. Trading operations have been affected with the impact previously recognised in 7 February guidance.

• Forestry: direct impact anticipated from cyclone-damaged plantations, almost all of which is non-recurring and therefore does not affect underlying profit.

• Automotive: impacted through flow-on of lower vehicle production rates. The decline in vehicle sales, and consequently production, following floods has compounded on generally lower vehicle build volumes in Australia.

Elders’ underlying profit guidance for the 2011 financial year remains unchanged from that stated in November 2010, and reaffirmed on 7 February 2011; namely that the then market range of estimates for underlying net profit after tax of $15 million to $30 million is considered to be appropriate given the range of seasonal and market variables. This expectation remains subject to the impact of seasonal, commodity and weather events.

It is anticipated that statutory profit after tax will be adversely affected by non-recurring items to recognise the impact and implications of cyclone damage to plantations. As discussed under the heading ‘Forestry’ below, this figure currently cannot be conclusively determined. Based on the preliminary information to hand, it is estimated that non-recurring items resulting from the cyclone could range between $8 million and $14 million as discussed below.

Earnings expectations for the first half have not changed substantially from that previously announced. Underlying profit before tax for the 2011 first half is expected to approximate the 2010 comparative of $2.2 million[1] .

Discussion of Weather Event and Trading Impacts

Rural Services

Financial impacts of recent weather events on Rural Services operations have been recognised in the earnings guidance provided to the ASX on 7 February 2011.

Network operations in the year to date have recorded healthy growth in sales, gross margin and EBIT contribution over the previous corresponding period. Livestock, Fertiliser, AgChem and Wool operations have all contributed significantly to the improvement over the year to date.

Trading operations are tracking behind the previous year to date with the major factor being the lower earnings expectations from the Elders Toepfer Grain (ETG) joint venture (Elders’ interest 50%). ETG results for the current period are being affected by the expansion of grade spreads brought by the historically low production of milling grade vs feed grade grain caused by unseasonal rainfall and consequent crop downgrades. Feedlot operations have experienced some disruption and costs brought by unseasonal weather and rainfall. Cost saving initiatives are proceeding on track.

Forestry

Elders Forestry’s Red Mahogany and Teak plantations in the Ingham – Babinda region of Far North Queensland have been damaged by recent cyclone activity.

Aerial assessment of affected plantations has now been completed and the process of more detailed in-field assessment has commenced. Initial indications are that the Red Mahogany estate has been extensively damaged and its viability is questionable. Damage to Teak plantations is less significant and is not considered a threat to their ongoing operation.

The Red Mahogany estate comprises approximately 4,500 hectares (ha) of planted land, 3,200 ha of which are owned freehold and the balance leased.

Conclusive determination of the extent of damage and economic implications will require the completion of project-by-project assessment and economic analysis. Until this work is completed, the Company is not in a position to accurately quantify the balance sheet and earnings implications of the cyclone damage.

As a guide, Elders can advise that approximately $12 million of accrued income is carried on the Company’s balance sheet in respect of the impacted Red Mahogany estate. This estate is covered by insurance, although single event limitations restrict recovery to the point where Elders’ recovery is not expected to be more than $4 million.

1 As advised on 7 February 2011 the 2010 first half comparative of $2.2 million incorporates the reclassification of the Company’s divested shareholding in Rural Bank as a discontinued operation. This figure will be subject to audit review in preparing the 31 March 2011 accounts.

2

Other potential areas of financial impact from cyclone damage are considered to represent a further $6 million of potential impairments, depending on the final extent of damage. Underlying income impacts on current or future year income is immaterial.

Affected growers will be advised in due course.

Automotive

Automotive operations have experienced a downturn in sales. The impact of lower sales of Australian made vehicles on build schedules has been compounded by the downturn in eastern Australian motor vehicle sales since the flood events in January. Futuris has mitigated the majority of this impact through productivity initiatives and incremental business.

Elders will continue to advise the market in keeping with its commitment to timely and full disclosure. Elders anticipates it will be able to make a full and final assessment of the financial impact of cyclone damage by the release of its 2011 half year accounts which is scheduled for 23 May 2011.

Further Comment:

Malcolm Jackman 0439 642 876 Chief Executive Officer

Further information:

Mark Hosking 0439 833 816 Chief Financial Officer Don Murchland 0439 300 932 General Manger Investor and Corporate Relations

2