Rural Funds Management (“RFM”), as responsible entity of the Rural Funds Group (“RFF”), has entered into two “Transactions” in the cattle sector:

1. an arrangement ("JBS Agreements") with JBS Australia ("JBS") which involves:
2. a) the acquisition and subsequent execution of a 10 year finance lease for JBS’ five Australian feedlots (“Feedlots”); and
3. b) a 10 year limited guarantee ("Guarantee") that will enable JBS to replace an existing arrangement for the supply of cattle to the Feedlots and grain fed business.
4. the purchase of a cattle property (“Comanche”) announced on 17 May 2018.

The Transactions and associated costs will be equity funded via a fully underwritten $149.5m accelerated non-renounceable entitlement offer ("Equity Raising"). Eligible Unitholders will have the opportunity to subscribe for 3 New Units for each 10 existing Units at an issue price of $1.95. The Guarantee will be provided to an entity to be acquired by RFM. It is therefore considered a transaction with a related party under the ASX Listing Rules and requires Unitholder approval, via a meeting to be held on 10 August 2018. An Independent Expert has concluded the Guarantee is fair and reasonable to the Non-Associated Unitholders of RFF under the requirements of Listing Rule 10 and Chapter 2E of the Corporations Act. The Equity Raising will be completed prior to the Unitholder meeting and is not subject to Unitholder approval.