RIVCO AUSTRALIA LTD — Net Asset Value 2016

Oct 13, 2016

Duxton Water Limited Monthly Update

30 September 2016

Net Asset Value per Share $1.06

Duxton Water
ASX Code (Shares)	D2O
ASX Code (Options)	D2OO
Shares on Issue	63,965,406
Options Outstanding	63,965,406
Options Exercise Price	$1.10
Options Expiry	31 May 2018

Entitlement Portfolio Value by Region

The primary investment objective of Duxton Water is to generate annual income through capitalising on the increasing demand for scarce water resources. Duxton Water derives its income from a diversified portfolio of Australian Water Allocations and Water Entitlements.

Net Asset Value per Share

Duxton Water's NAV as at 30 September 2016 was $1.06 per share.

These figures are not adjusted for any dilution due to the outstanding options which are exercisable at $1.10. The after tax figure takes into account the provision for deferred tax on set-up costs and estimates of net tax provisions that may arise should the entire portfolio be disposed of on the above date.

Net Asset Value - Since Inception

Water Portfolio Diversification

Market Update

Murray System

Continued rainfall across the southern Murray Darling Basin throughout September has added further moisture to an already saturated basin. Total inflows into the Murray system were 16,645,370ML , compared to the 10 year average of 7,031,229. This was off the back of the Hume and Dartmouth reservoirs increasing storage levels to 97% and 64%, respectively. The Hume Reservoir received total rainfall of 135.2mm (highest on record), compared to the long-term average of 62mm. In addition to improving storage levels, this rain stimulated higher river heights and flows as well as isolated flood events in north east Victoria and NSW. Temporary water prices in Victoria declined substantially in September due to the significant rainfall. Permanent water prices held relatively well throughout the month, considering the heavy rainfall. In Victoria, zone 6 and zone 7 increased by 1.51% and decreased by 0.48%, respectively. In NSW, zone 11 high security water saw a decrease of 1.80%.

Murrumbidgee and Lachlan Valleys

Central NSW received some of the heaviest rainfall on record in September, causing widespread flooding in the Forbes region. The Lachlan River reached 11m, surpassing the 1990 floods. Nearly all dams and reservoirs in the Lachlan and Murrumbidgee systems reached full capacity in September. As a result, temporary prices in the Murrumbidgee and Lachlan valley dropped to levels similar to the 2013/14 season. Permanent prices for the two valleys held their value in September, mainly due to the lack of trades throughout the month.

Duxton Water Limited Monthly Update

30 September 2016

Investment Update

Permanent Water Acquisitions and Divestments

As at 30 September 2016, Duxton Water's cash position was $30,361,199. Duxton Water signed contracts to purchase $6,262,422 in September comprised of 65% high security and 35% general security water.

Temporary Water Yield

Temporary price targets for unsold allocations are targeted for sale in the warmer months, especially considering the wet season we're currently experiencing. Due to this we expect general security allocations to be high, and remain confident at achieving budgeted yields.

Lease Yield

No new leases were signed in September, with the weighted average yield for long-term leases remaining at 5.94% (cost base: $33,664,332).

Valuation Methodology

Total assets of the Company are valued at fair market value based upon independent valuation, or the weighted average price of the last three applicable trades on or prior to the relevant Valuation Day, received from the respective state register, excluding outliers. Outliers are defined as a trade with greater than 10% variance from the last weighted average price and transactions that are less than 10ML (unless there are no applicable transactions greater than 10ML) less the total liabilities of the Company excluding provisions for tax payable and Performance Fee.

Market Outlook

Prolonged wet weather and the likelihood for improved water availabilities are continuing to delay the need for irrigators to purchase temporary allocations for immediate usage. Although Spring has commenced, the significant rainfall and flooding across parts of Victoria and NSW should see market prices continue to soften .However, the onset of warmer spring weather is seeing demand from within the SA Riverland and VIC/NSW Sunraysia improve. Allocation announcements were made on the 15th September with very generous increases. We expect general security seasonal determinations to continue to increase throughout October.

Disclaimer

This factsheet is prepared by Duxton Capital (Australia) Pty Ltd [ACN: 164 225 647; AFSL no. 450218] ("Duxton Capital (Australia)"). Duxton Capital (Australia) is the Investment Manager of Duxton Water Limited [ACN 611 976 517] ("Duxton Water").

This factsheet has been prepared for the purposes of providing general information only and does not constitute an offer, invitation, soliciation or recommendation with respect to the purchase or sale of any securities in Duxton Water. Information from this factsheet must not be issued in any jurisdiction where prohibited by law and must not be used in any way that would be contrary to local law or regulation. The terms of Duxton Water are set out in the prospectus of Duxton Water ("Prospectus"), and should there be any conflict between the terms set out in this factsheet and the Prospectus, the terms in the Prospectus shall prevail.

The forecasts provided are based upon our opinion of the market as at this date and are subject to change, dependent on future changes in the market. Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance. Investments are subject to risks, including possible loss of principal amount invested. The value of shares/ units and their derived income may fall as well as rise. Past performance or any prediction or forecast is not necessarily indicative of future performance. No assurance is given that the investment objective or the targets will be met.

This document does not constitute investment, tax, legal or any other form of advice or recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it. Investors should study all relevant information and consider whether the investment is appropriate for them. If you require investment or financial advice please contact a regulated financial adviser. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this presentation.

The Duxton Group or its affiliates may hold positions in the securities referred. Where stocks are mentioned, it should not be construed that these are recommendations to buy or sell those stocks.

You are not authorized to redistribute this document nor qualified to make any offer, representation or contract on behalf of Duxton Capital (Australia) or its affiliates. Although the information was compiled from sources believed to be reliable, no liability for any error or omission is accepted by Duxton Capital (Australia) or its affiliates or any of their directors or employees. The information and opinions contained may also change. Copyright protection exists in this presentation. To the extent permitted by applicable law, none of the Duxton Group, their affiliates, or any officer or employee of the Duxto Group accepts any liability whatsoever for any direct or consequential loss arising from any use of this factsheet or its contents, including for negligence.

Duxton Capital (Australia) Pty Ltd	Duxton House, 7 Pomona Road, Stirling, SA, Australia 5152	T (08) 8130 9500	F (08) 8130 9599
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