SELECT HARVESTS LIMITED — Board/Management Information 2012

Jun 3, 2012

4 June 2012

Dear Shareholder,

I write today to inform you of progress on a range of initiatives within the business, to update you on the almond crop and the outlook for the remainder of the year.

Water assets

After a thorough strategic review of the company’s water requirements and permanent water assets we have agreed to sell 11 gigalitres (GL) of high security Victorian and New South Wales water entitlements for $18 million. The majority of the entitlements were sold to the Federal Government as part of the recent water tender process, with the remainder sold to a private buyer.

This is an excellent outcome for Select Harvests. We undertook a thorough analysis of the business’s needs under a variety of scenarios, including drought. With a range of economically viable temporary water solutions now available it became apparent that the sale of some permanent water allocations, and a more active management of our long term water requirements, makes commercial and strategic sense for the business.

Select Harvests’ retains ownership of 30 GL of water entitlements across Victoria, NSW and Western Australia, and has access to high security entitlements through its leased orchards in New South Wales and Victoria. The balance of future water requirements will be secured through a combination of temporary water purchases and medium term hedging strategies.

Food

In March 2012 we announced that we have appointed Kidder Williams to oversee the sale of our non-core health and snack food brands; SunSol, Soland and Nu-Vit. I am pleased to advise you that the sale process is progressing well with several submissions of interest now under consideration.

Together the sale of our non-core food brands and the permanent water assets is consistent with our ongoing capital management plans. It will enable us to reduce debt and provide further balance sheet flexibility to support the business’s growth agenda.

Crop update

With the almond harvest now largely completed across Company and Managed Orchards we have updated our estimate for the 2012 almond crop.

Latest estimates across the Australian almond industry indicate that yields will be below the industry averages for the third year in a row. This trend is also being reflected across our Company and Managed Orchards crop. Our initial estimate was that our Company Orchards crop would be 75% above the 2011 crop of 4,030 metric tonnes. The latest indications are that the 2012 crop will be approximately 35 - 45% higher than the 2011 crop.

The industry believes that the reduced yields are the result of the impacts of drought followed by unseasonable weather conditions over the past two to three years. Full horticultural programs are in place across our orchards and we expect yields to increase as trees return to full productive health and orchards reach maturity. In the meantime we are benchmarking our horticultural programs to ensure that we are in line with international best practice.

Average nut quality for the 2012 crop is good with only minimal staining recorded on some almonds from our New South Wales orchards.

Almond market

Almond price fundamentals are strong with increased demand supporting a firmer almond price. This is supported by continued increased demand from China and India.

This strong demand and the softening of the Australian dollar against the US dollar has underpinned an almond price which is 12-15% higher than in fiscal year 2011.

Our processing and marketing programs are well advanced with more than a quarter of the 2012 harvest processed and an active selling program underway.

FY12 outlook

We expect that the firmer almond price will partly offset lower than previously estimated volumes for the 2012 crop.

Subject to the crop estimate being within the projected range the company anticipates FY12 underlying EBIT, excluding any gains on the sale of water entitlements, to be approximately 10% - 15% higher than underlying FY11 EBIT.

Board and executive team

Curt Leonard has announced his retirement from the Board of Select Harvests after eight years as a director of the Company. Curt initially flagged his intention to retire as a director when he announced his retirement as Chairman of the Board in October 2011. I would like to thank Curt on behalf of the Board, shareholders and employees of Select Harvests for his dedication and commitment to the Company.

Under Curt’s Chairmanship the Company navigated a period of significant transition in the Australian almond industry, putting in place a platform to take advantage of the strong fundamentals which underpin the global and Australian almond industry. We wish him the very best in his retirement.

It is the Board’s intention to appoint another independent non-executive director to replace Curt in due course.

I would also like to update you on the process to appoint a Chief Executive Officer. I have been extremely impressed by the quality of candidates who have come forward for this position, reflecting Select Harvests’ leadership position in the Australian almond industry. We are close to finalising a decision in the coming weeks and I am confident that the successful candidate will be well placed to drive the next phase of Select Harvests’ development and drive value for shareholders.

In the meantime the executive team continues to make good progress in driving efficiencies and reducing working capital requirements across the business to ensure that we maintain a leading position within the Australian almond industry.

The outlook for Select Harvests remains positive. The fundamentals of the almond industry are compelling with strong demand from fast growing markets such as China and India. We are on track with our plans to strengthen our balance sheet positioning us well to benefit from market improvements and increasing crop volumes.

Kind regards

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Michael Iwaniw

Chairman