RIVCO AUSTRALIA LTD — Net Asset Value 2017

Nov 9, 2017

Duxton Water Limited Monthly Update

31 October 2017

Net Asset Value per Share $1.14

Duxton Water
ASX Code (Shares)	D2O
ASX Code (Options)	D2OO
Shares on Issue	63,968,406
Options Outstanding	63,962,406
Options Exercise Price	$1.10
Options Expiry	31 May 2018

Entitlement Portfolio Value by Region

Water Portfolio Diversification

Water Security Breakdown

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 31 October 2017 was $1.14 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 per Share - Since Inception

Market Update

Market Summary

Storage levels of the major dams within the Murray Darling Basin (MDB) decreased 2.2% over the past month. Total MDB storage levels were 9.9% lower than October 2016.

Allocation levels rose throughout October as Government Water Authorities increased allocations available to Water Entitlement holders. Allocations for Victoria Murray High Reliability, New South Wales Murray High Security and South Australia High Security were 100%, 97% and 100% respectively as at 31 October. Murray General Security licenses have received allocations of 30%. Including carryover, Duxton Water presently has approximately 16GL of unleased water allocations available.

Southern Basin

Total inflows into the Murray system for October were 560GL, compared to the 10-year average of 937GL. The Hume and Dartmouth reservoirs closed the month at 86.2% and 86.5% of capacity, respectively. Approximately 18% of the water held in these storages is carry over held by licence holders from the 16/17 water year. Across the MDB the Bureau of Meteorology reported that mean rainfall for October was 36% above average. Rainfall in the MDB since July remains 9% below the long term average.

Water Entitlement prices displayed continued strong increases in the month of October. Price increases were seen in Victoria Murray High Reliability, New South Wales Murray General Security and Victoria Goulburn High Reliability water zones, increasing 12.2%, 7.9% and 5.7% respectively.

Temporary water prices for the month fell back from their highs as rainfall was observed throughout the MDB. Rainfall over the past winter months remain below the long-term average and will provide upward pressure on prices in the upcoming summer months. The major water zones prices range from $130/ML in August to $140/ML at the end of the month.

Northern Basin

Northern Basin Water Entitlement prices showed little change in October. Allocation prices have shown strong increases as water users start to prepare for the upcoming summer growing season.

Duxton Water Limited Monthly Update

31 October 2017

Investment Update

Permanent Water Acquisitions and Divestments

As at 31 October 2017, Duxton Water is invested in approximately $64.5 million of Water Entitlements, equating to 90% of the portfolio, with the remainder of the portfolio held in cash and net current assets. Duxton Water has entered into contracts for an additional $4.4 million worth of Water Entitlements which once settled completes the reinvestment of proceeds from entitlement disposal in August.

Additionally, with the approval at the EGM on the 18th of October of the Duxton Vineyards Sale and Lease back transaction, Duxton Water has contracted and will settle the purchase of a further $7.3 million worth of Water Entitlements in Novmeber.

Temporary Water Sales

In October, 300ML of allocations were sold. YTD allocation sales amount to 16,050ML.

Lease Yield

The Company entered into a four-year lease contract for 400ML of Zone 7 High Reliability at a rate of 6.6%. This brings the weighted average yield for long-term leases to 6.06% (compared to 6.04% previously).

Total Yield

Duxton Water's yield is comprised of two streams of income: leased and unleased income. The leased income is currently at 6.06% (annualised) and the unleased income is 3.56% (running). The weighted average running yield of the two streams is 5.04%.

Dividends

As announced in September, the Company will pay a 2.3 cent dividend per share franked at 75% distributed to investors on the 16th of November. The company's shares went ex-dividend on the 1st of November. The Company aims to pay biannual dividends moving forward.

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 10.0% 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. The unleased income portion of the portfolio is calculated by dividing the gross value of allocation sales by the gross value of unleased Water

Inflows to the MDB

Market Outlook

The latest Bureau of Meteorology outlooks are suggestive of moderate climatic conditions over the next three months for the Murray Darling Basin. Models are forecasting a 45%-55% chance of below average rainfall across the Southern Connected Basin (see chart below).

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, solicitation 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 Duxton Group accepts any liability whatsoever for any direct or consequential loss arising from any use of this factsheet or its contents, including for negligence.