ELDERS LIMITED — Capital/Financing Update 2012

Dec 16, 2012

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17 December 2012

Sale of Sandalwood Assets

Elders Limited (ASX:ELD) announces that it has entered into a conditional agreement to sell its Indian Sandalwood assets to entities associated with Santanol Pty Ltd, an existing owner and manager of Indian Sandalwood plantations in Australia.

The agreement provides for the sale of Elders’ freehold properties located in the Ord River irrigation area, together with standing timber, plant and equipment as well as for the assignment of leasehold interests relating to the Indian Sandalwood operations.

The agreement also provides for the conditional sale of MIS-grower owned Indian Sandalwood standing timber.

The agreement is subject to a number of conditions precedent, including the approval of relevant MIS growers, regulatory approvals and other confidential commercial conditions. Subject to these conditions being satisfied, it is expected that completion will occur in the first calendar quarter of 2013.

The profit implication, which Elders expects to be break even or better, and cash proceeds to Elders will be able to be calculated on or before completion. Cash proceeds received by Elders will be applied in their entirety to debt reduction.

Elders’ forestry operations were classified as discontinuing in the company’s FY 2011 and FY 2012 financial statements. Accordingly, results from Elders’ forestry operations are included in Elders’ statutory profit but excluded from underlying profit as a discontinuing operation.

Further comment: Malcolm Jackman 0439 642 876 Chief Executive Officer Further information for MIS growers: Investor services 1800 999 190

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