RIVCO AUSTRALIA LTD — Net Asset Value 2017

Feb 13, 2017

Duxton Water Limited Monthly Update

31 January 2017

Net Asset Value per Share $1.05

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

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 January 2017 was $1.05 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

Performance	Gain/Loss
1 Month	-2.23%
3 Months	-0.11%
6 Months	N/A
12 Months	N/A
Inception	-1.87%

Market Update

Market Summary

Warm to hot conditions prevailed across most of the Murray-Darling Basin (MDB) throughout January with brief reprieves of rainfall. Current weather models suggest neutral weather conditions will continue to be present from now into autumn within the major southern irrigation farming areas. Current inflows remain above average which is assisting to build momentum towards higher water availability for next season. Deliveries of Goulburn Inter Valley Transfers (IVT) commenced in January. These IVT deliveries reopened the opportunities for temporary allocation trade out of the Goulburn valleys into the Murray system. This has been the catalyst for the temporary price decline. However, if dry conditions persist and current maturation of crops and/or carryover demand improves, a new price floor may emerge.

Very early grape varieties are now being harvested in the Sunraysia region. Commentary out of several industries indicate average to above average yields are on the horizon for most growers with a two to three week delay in this season's crop growth primarily caused by the 'wetter' past six months. Prices for grapes across the region look to be 10-20% higher compared to 2016. Cotton prices throughout January also increased circa 6%.

Contrary to the reduction in the temporary market, permanent entitlement prices remained steady throughout January. In part, this is because irrigators are placing value on the long term positive attributes of entitlement ownership.

Murray System

Total inflows into the Murray system were 260GL, in line with the 10 year average of 260GL. The Hume and Dartmouth reservoirs remain at high storage levels of 83.8% and 78%, respectively. The Hume Reservoir received total rainfall of 50mm, compared to the long-term average of 46.3mm.

The opening of the Goulburn/Murray IVT was the catalyst for the temporary price decline in both water systems. Although temporary prices for zones 1A, 6 and 7 fell substantially, the overall impact on the portfolio was mitigated through the longterm leases. Entitlement prices in the Murray system were mixed throughout January. In NSW, zone 11 general security saw an increase of 4.6%, however zone 11 high security decreased 4.8%. This significantly impacted the NAV for the month as 33% of the portfolio is invested in zone 11 high security water entitlements. In Victoria, zone 6 decreased 2.4% and zone 1A increased 2.7%.

Central and Northern NSW (Murrumbidgee and Lachlan Valley)

The central and northern NSW water assets held firm in January, although this was due to the illiquidity of the assets. As discussed in the previous factsheet, there still remains significant demand for Lachlan Valley entitlements at a 20% premium to our weighted average price. These transactions will eventually be filled and reflected in our Lachlan Valley valuations.

Duxton Water Limited Monthly Update

31 January 2017

Investment Update

Permanent Water Acquisitions and Divestments

As at 31 January 2016, Duxton Water is invested in approximately $54 million of water entitlements, equating to 81% of the portfolio, with the remainder of the portfolio held in cash and net current assets. Duxton Water has additionally entered into contracts, agreed terms for contracts or has pending offers for contracts on an additional $10.2 million worth of water entitlements. These additional contracts will result in 96% of the portfolio being invested.

Temporary Water Sales

In January, 6,130ML of allocations were sold at a weighted average yield of 4.0%. This comprised of water allocations in zones 1A, 4, 6, 7 and 10. Of the total allocations sold, 3,250ML related to forward contracts which had a weighted average yield of 5.83%. Prices received for these forwards were significantly higher than the spot price at delivery. As an example, a 700ML zone 6 contract was sold forward in January at $110/ML. The spot price for zone 6 at the delivery date was $50/ML. This represents a 120% premium to the market price.

Lease Yield

No new leases were entered into in December. The weighted average yield for long-term leases remains at 6.0%.

Dividends

The Company intends to pay dividends twice yearly. We currently anticipate the first dividend will be paid to Shareholders in August 2017.

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.

Please note: Due to a rounding error, the Duxton Water December 2016 reported NAV was incorrect. The correct NAV for 31 December 2016 was $1.07 per share. This equates to a revised monthly performance as at 31 December 2016 of 0.37%, a three month performance of 1.18% and a performance of 0.37% since inception.

Market Outlook

The latest Bureau of Meteorology outlooks are suggestive of further hot and dry conditions over the next three months for the Murray Darling Basin. Models are forecasting a 50%-65% chance of below average rainfall across the Basin (see chart below). There are forecasts for above average pressure which will likely bring clear skies and warmer than average daytime temperatures to parts of the southeast.

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