RIVCO AUSTRALIA LTD — Net Asset Value 2018

Mar 6, 2018

Duxton Water Limited Monthly Update

28 February 2018

Net Asset Value per Share $1.21

31 May 2018 Options Expiry Options Outstanding Options Exercise Price Shares on Issue $1.10 63,912,406 71,243,632 ASX Code (Shares) Duxton Water ASX Code (Options) D2O D2OO

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 28 February 2018 was $1.21 per share.

The after tax NAV 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. These figures are not adjusted for any dilution due to the outstanding options which are exercisable at $1.10.

NAV is calculated based on an independent monthly portfolio valuation performed by Aither Pty Ltd (Aither).

Net Asset Value per Share - Since Inception

Market Summary

Storage levels of the major dams within the Murray Darling Basin (MDB) decreased by 5% through February in line with summer water use expectations. Total MDB storage levels were 17% lower than at the end of February 2017.

No allocation increases were made through the month and we believe the likelihood of further allocations prior to the start of the 18/19 Water year (1/7/2018) July is low.

Duxton Water at the end of February had approximately 12.2GL of unleased water allocations available.

Southern Basin

The Hume and Dartmouth reservoirs closed the month at 53% and 89% of capacity, respectively. February rainfall totals across the Basin were 27% lower than the long term average.

Entitlement demand remained strong. The NSW Murrumbidgee High Security Entitlement pricing increased by 3% (8.24% of the portfolio), with NSW Zone 10 Murray General Security Entitlement increasing by a further 4% through February (10.6% of the portfolio), and NSW Zone 11 General Security increasing by 3% (3% of Portfolio).

Temporary water demand across the Murray and Murrumbidgee valleys has increased as irrigators complete their summer watering programs and begin to address their requirements for winter crop pre-watering and Carry Over for the 18/19 Water Year.

Duxton Water took advantage of these pricing peaks to continue to sell down allocations from its unleased entitlements.

Northern Basin

Northern Basin Water Entitlements saw an 8% increase in New South Wales Lachlan General Security Water Entitlement prices. These entitlements represent 5.91% of the portfolio. Allocation prices remain firm as irrigators source water for summer annual crop requirements.

Duxton Water Limited Monthly Update

28 February 2018

Investment Update

Permanent Water Acquisitions and Divestments

As at 28 February 2018, Duxton Water is invested in approximately $92.1 million of water entitlements with the remainder of the portfolio held in cash and net current assets. Duxton Water holds contracts over a further $5.69 million of water entitlements at 28th February 2018.

Temporary Water Sales

In February, 8,370ML of allocations were sold. Higher levels of allocations were carried through from the 17FY and are planned to be sold through the remainder of the summer irrigation period. The Company's running yield from its unleased allocation will increase through the financial year as we divest the remainder of current held allocation and derive returns from the next water years allocations from the 1st of July.

The allocation sales to date for 2018 amount to 11,838ML.

Lease Yield

No new leases were entered into in February.

58% of the Company's portfolio is leased with a weighted average yield of 6.20% and a weighted average lease duration of 5.34 years.

Total Yield

Duxton Water's yield is comprised of two streams of income: leased and unleased income. Assuming a steady state basis, the forecast annual gross yield to the end of 2018 will be 6.1%. (This is a forecast and actual results may vary).

Dividends

In line with the Company's goals of paying a dividend to shareholders biannually, the Company announced on the 7 March 2018 that it will pay its second dividend to its shareholders of 2.4cents per share payable in Australian dollars. The dividend will be franked to 60% for Australian taxation purposes. The Company currently has 63,902,906 options on issue as at the 7th of March 2018. The 2.4c equates to a total dividend pool of $1,710,075. Should further Duxton Water Options be exercised prior to the Record Date, this will dilute the dividend pool and may result in a lower dividend per share. (Please refer to Dividend Announcement Statement for further details).

Valuation Methodology

Aither undertake a monthly valuation of the Duxton Water portfolio. Total assets of the Company are valued based on an assessment of fair market value. Aither has adopted the Australian Accounting Standards Board (AASB) 13 Fair Value Measurement definition of fair value. Further information regarding the valuation methodology can be found on www.duxtonwater.com.au.

Market Outlook

The latest Bureau of Meteorology outlooks suggest that the MDB may receive < 50% of median rainfall over the next quarter (see chart below). Natural Resource Managers are beginning to provide allocation forecasts with Victoria currently expecting Ave to Dry Conditions. NSW and SA will report over the next month on their estimated opening allocations based on held storage volumes and historic inflows projections. Based on these early indications the market is currently pricing forward contracts for 18/19 allocation at $170-180/ML in the Murrumbidgee and $160- 165/ML in the Murray; these prices are above what was generally seen the 2017 water year (approxmiately 40% higher). Storage Levels

Source: Bureau of Meteorology

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.