RURAL FUNDS GROUP — Capital/Financing Update 2021

Jul 7, 2021

Announcement Summary

Entity name

RURAL FUNDS GROUP

Announcement Type

New announcement

Date of this announcement

8/7/2021

The Proposed issue is:

An accelerated offer

Total number of +securities proposed to be issued for an accelerated offer

ASX +security code	+Security description	Maximum Number of+securities to be issued
RFF	FULLY PAID UNITS STAPLED SECURITIES	40,464,352

Trading resumes on an ex-entitlement basis (ex date) 9/7/2021

+Record date

12/7/2021

Offer closing date for retail +security holders

28/7/2021

Issue date for retail +security holders

4/8/2021

Refer to next page for full details of the announcement

Part 1 - Entity and announcement details

1.1 Name of +Entity

RURAL FUNDS GROUP

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

If the +securities are being offered under a +disclosure document or +PDS and are intended to be quoted on ASX, we also apply for quotation of all of the +securities that may be issued under the +disclosure document or +PDS on the terms set out in Appendix 2A of the ASX Listing Rules (on the understanding that once the final number of +securities issued under the +disclosure document or +PDS is known, in accordance with Listing Rule 3.10.3C, we will complete and lodge with ASX an Appendix 2A online form notifying ASX of their issue and applying for their quotation).

1.2 Registered Number Type

other

Registration Number

Rural Funds Trust (ARSN 112 951 578) and RF Active (ARSN 168 740 805)

1.3 ASX issuer code

RFF

1.4 The announcement is

New announcement

1.5 Date of this announcement

8/7/2021

1.6 The Proposed issue is:

An accelerated offer

1.6b The proposed accelerated offer is

Accelerated non-renounceable entitlement offer (commonly known as a JUMBO or ANREO)

Part 3 - Details of proposed entitlement offer issue

Part 3A - Conditions

3A.1 Do any external approvals need to be obtained or other conditions satisfied before the entitlement offer can proceed on an unconditional basis?

No

Part 3B - Offer details

Class or classes of +securities that will participate in the proposed issue and class or classes of +securities proposed to be issued

ASX +security code and description RFF : FULLY PAID UNITS STAPLED SECURITIES

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? Existing class

Will the proposed issue of this +security include an offer of attaching +securities? No No

If the entity has quoted company options, do the terms entitle option holders to participate on exercise?

Details of +securities proposed to be issued

ASX +security code and description

RFF : FULLY PAID UNITS STAPLED SECURITIES

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

ISIN Code for the entitlement or right to participate in the offer (if Issuer is foreign company and +securities are non CDIs)

Offer ratio (ratio to existing holdings at which the proposed +securities will be issued)

Has the offer ratio been determined? Yes

The quantity of additional +securities For a given quantity of +securities

held

to be issued	held
5	42

What will be done with fractionalentitlements?	Maximum number of +securitiesproposed to be issued (subject torounding)
Fractions rounded down to the nearest	40,464,352
whole number or fractions disregarded

Offer price details for retail security holders

Has the offer price for the retail offer been determined? Yes

In what currency will the offer be	What is the offer price per +security
made?	for the retail offer?
AUD - Australian Dollar	AUD 2.47000

Offer price details for institutional security holders

Has the offer price for the institutional offer been determined? Yes

In what currency will the offer be	What is the offer price per +security
made?	for the institutional offer?
	AUD 2.47000

AUD - Australian Dollar

Oversubscription & Scale back details

Will individual +security holders be permitted to apply for more than their entitlement (i.e. to over-subscribe)? No

Will a scale back be applied if the offer is over-subscribed? No

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

Part 3D - Timetable

3D.1a First day of trading halt

8/7/2021

3D.1b Announcement date of accelerated offer

8/7/2021

3D.2 Trading resumes on an ex-entitlement basis (ex date)

9/7/2021

3D.5 Date offer will be made to eligible institutional +security holders 8/7/2021

3D.6 Application closing date for institutional +security holders

8/7/2021

3D.8 Announcement of results of institutional offer (The announcement should be made before the resumption of trading following the trading halt) 9/7/2021

3D.9 +Record date

12/7/2021

3D.10a Settlement date of new +securities issued under institutional entitlement offer

21/7/2021

3D.10b +Issue date for institutional +security holders

22/7/2021

3D.10c Normal trading of new +securities issued under institutional entitlement offer

22/7/2021

3D.11 Date on which offer documents will be sent to retail +security holders entitled to participate in the +pro rata issue

14/7/2021

3D.12 Offer closing date for retail +security holders

28/7/2021

3D.13 Last day to extend retail offer close date

23/7/2021

3D.19 +Issue date for retail +security holders and last day for entity to announce results of retail offer

4/8/2021

Part 3E - Fees and expenses

3E.1 Will there be a lead manager or broker to the proposed offer? Yes

3E.1a Who is the lead manager/broker?

UBS AG, Australia Branch

Bell Potter Securities Limited Wilsons Corporate Finance Limited

3E.1b What fee, commission or other consideration is payable to them for acting as lead manager/broker?

A management fee of 0.3% (excluding GST) of the Offer proceeds of the Entitlement Offer

3E.2 Is the proposed offer to be underwritten?

Yes

3E.2a Who are the underwriter(s)?

UBS AG, Australia Branch

Bell Potter Securities Limited Wilsons Corporate Finance Limited

3E.2b What is the extent of the underwriting (ie the amount or proportion of the offer that is underwritten)?

An underwriting fee of 1.5% (excluding GST) of the Offer proceeds of the Entitlement Offer

3E.2c What fees, commissions or other consideration are payable to them for acting as underwriter(s)?

A discretionary fee of an amount up to 0.4% (exclusive of GST) of the Offer proceeds of the Entitlement Offer

3E.2d Please provide a summary of the significant events that could lead to the underwriting being terminated

See ASX Announcement dated 8 July 2021:

Subject: Equity Raising and webinar invitation which relates to the acquisition and equity raising presentation.

3E.2e Is a party referred to in listing rule 10.11 underwriting or sub-underwriting the proposed offer? No

3E.3 Will brokers who lodge acceptances or renunciations on behalf of eligible +security holders be paid a handling fee or commission?

No

3E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed offer

Part 3F - Further Information

3F.1 The purpose(s) for which the entity intends to use the cash raised by the proposed issue

The development of macadamia orchards; to acquire cattle properties, and the acquisition of water entitlements.

3F.2 Will holdings on different registers or subregisters be aggregated for the purposes of determining entitlements to the issue?

No

3F.3 Will the entity be changing its dividend/distribution policy if the proposed issue is successful? No

3F.4 Countries in which the entity has +security holders who will not be eligible to participate in the proposed issue

Retail unitholders ¿ all countries other than Australian and New Zealand¿ and `Institutional unitholders ¿ all countries other than Australia, New Zealand, Hong Kong, Singapore and Japan¿

3F.5 Will the offer be made to eligible beneficiaries on whose behalf eligible nominees or custodians hold existing +securities

Yes

3F.5a Please provide further details of the offer to eligible beneficiaries

See ASX Announcement - for release 9 July 2021 Titled: Nominee and Custodian letter

3F.6 URL on the entity's website where investors can download information about the proposed issue

https://ruralfunds.com.au/

3F.7 Any other information the entity wishes to provide about the proposed issue

3F.8 Will the offer of rights under the rights issue be made under a disclosure document or product disclosure statement under Chapter 6D or Part 7.9 of the Corporations Act (as applicable)? No

3F.9 Any on-sale of the +securities proposed to be issued within 12 months of their date of issue will comply with the secondary sale provisions in sections 707(3) and 1012C(6) of the Corporations Act by virtue of: The publication of a cleansing notice under section 708A(5), 708AA(2)(f), 1012DA(5) or 1012DAA(2)(f)