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1 !!! 29!February!2012!!! The!Manager! Company!Announcements! Australian!Stock!Exchange!Ltd! 4 th!floor,!20!bridge!street! SYDNEY!!NSW!!2000!!! Dear!Sir/Madam!! RuralAus(Investments(Limited(( RuralAus )( ACN(091(247(166( Meetings(of(Growers(! The!directors!of!RuralAus!wish!to!announce!to!shareholders!that!Primary!Securities!Limited!( Primary! Securities )!have!called!for!meetings!of!growers!for!the!following!schemes:!! Plantation!Forestry!Hardwood!Project!No!2;! Australian!Growth!Timber!Project!No!3;! Australian!Growth!Timber!Project!No!4;!and! Australian!Growth!timber!Project!2002/2003.!! Primary!Securities!is!the!responsible!entity!for!the!above!schemes.!! These!schemes!are!on!land!owned!or!leased!by!RuralAus.!!The!purpose!of!the!meetings!is!for!growers! to!approve!extensions!of!the!schemes!for!a!further!two!years!to!allow!for!the!harvest!of!the!trees.!! Copies!of!the!notices!of!meeting!follow.!! Yours!faithfully!! Scott!Wallace! Company!Secretary! RuralAus!Investments!Limited! 23/60 Royal Street, East Perth Western Australia 6004 PO Box 8782, Perth BC, Western Australia 6849 T: (08) F: (08) E: info@ruralaus.com.au ACN

2 P RIMARY S ECURITIES L TD ABN AFSL No PO Box 732 FREMANTLE WA 6959 Tel: Fax: admin@primarysecurities.com.au Website: NOTICE OF A MEETING OF MEMBERS OF 1999 GROWERS CLASS OF PLANTATION FORESTRY HARDWOOD PROJECT N O 2 ARSN NOTICE is hereby given that a Meeting of Members of 1999 Growers Class of Plantation Forestry Hardwood Project No 2 ARSN will be held at 2.00 pm on Monday 26 March 2012 at Kulcha, Level 1, 13 South Terrace, Fremantle, Western Australia BUSINESS 1. Extension of Term of Consolidated Licence and Management Agreement To consider, and if thought fit, to pass the following resolution as a Special resolution: That the Consolidated Licence and Management Agreement be varied so that: (a) the termination date is changed from 30 June 2012 to 30 June 2014; (b) the Management Fee payable for each year from 30 June 2012 to 30 June 2014 remain at the rate of $ per year per Woodlot payable in accordance with subclause 6.1(c) of the Consolidated Licence and Management Agreement; (c) the Licence Fee payable for each year from 30 June 2012 to 30 June 2014 shall be the amount payable by the Manager to the Land Owner pursuant to the proposed extension of lease payable per year per Woodlot as follows: (i) (ii) $25.00 of each year s Licence Fee per Woodlot shall be payable in accordance with sub-clause 4.1(b)of the Consolidated Licence and Management Agreement; and the balance deducted from the Gross Proceeds of Sale. 2. Extension of Term of the Lease Agreements To consider, and if thought fit, to pass the following resolution as an Ordinary resolution: That the Growers authorize the Responsible Entity to extend the Lease Agreements for an additional term expiring on 30 June 2014 at the rent of $ per hectare (with respect to

3 Bremer Bay land) and the current market value with respect to Kangaroo Island Land being $ per hectare) payable in accordance with resolution 1 of this Meeting but otherwise on the same terms and conditions as set out in the current Lease Agreements. By order of Primary Securities Ltd as Responsible Entity Robert Garton Smith Managing Director Notes a. If you are unable to attend the meeting please complete and return the proxy form which forms part of this notice of meeting. b. A Special resolution must be passed by Growers holding at least 75% of the votes of Growers present and voting on the resolution at the meeting (either in person or by proxy) c. An Ordinary resolution must be passed by Growers holding at least 50% of the votes of Growers present and voting on the resolution at the meeting (either in person or by proxy) d. Please see attached Explanatory Memorandum giving the reasons for the above resolution.

4 EXPLANATORY MEMORANDUM 1. REASONS FOR MEETING The Consolidated Licence and Management Agreement is the agreement under which the Responsible Entity grants to you your interests in the Woodlots and Trees and provides for the maintenance and harvest of the Trees. The Consolidated Licence and Management Agreement expires on 30 June Scheme 2 has two classes of Grower, 1999 Growers and 2000 Growers. All of the Growers Woodlots are situated either at Bremer Bay or on Kangaroo Island. The cost structures are different for each class hence the separate meetings for each class. All Growers share in the proceeds of sale of all trees, irrespective of where their Woodlots are located or which class of Grower they are part of. Due to market conditions resulting from the global financial crisis and the rise in the Australian dollar, the Trees have not been harvested and cannot be harvested before 29 June The Responsible Entity wishes to extend the term of the Consolidated Licence and Management Agreement for 2 years with the object of harvesting the Trees prior to that date. If this is not possible, there will be an additional meeting to extend the Term for another year (in the case of the Bremer Bay Trees) or to extend the Term for an additional two years (in the case of the Kangaroo Island Trees). The purpose for this meeting is to obtain the approval of the Growers to: 1. extend the term of the Scheme by 2 years by extending the term of the Scheme and the Consolidated Licence and Management Agreement; and 2. authorize the Responsible Entity to arrange the extension of the Lease Agreements under which the rights of the Growers depend. Resolution 1 (Extension of Term of Licence & Management Agreement & Scheme) If the Growers approve, the Consolidated Licence and Management Agreement will continue for an additional two years. The annual Management Fee will remain at the current rates namely $ per annum per Woodlot for 1999 Growers. However, the Licence Fee payable by the Growers (currently $25.00 per annum per Woodlot for 1999 Growers) will be increased to $ per year per Woodlot. Current market rent for land in the Bremer Bay area is $ per year per Woodlot whereas it is $ per year per Woodlot per annum on Kangaroo Island. The Licence Fee payments will continue to be $25.00 per annum per Woodlot with the balance payable from the Gross Proceeds of Sale. The reason for the increase in the Licence Fee is because the Manager has been paying the difference between the current Licence Fee and the market rent payable under the Head Leases for the property upon which the Woodlots are situated. The Manager will not continue to do this. During the additional term, the Trees on Bremer Bay will be harvested. The Manager has begun harvest planning in preparation for the commencement of harvest of Scheme 1. Sample woodchips have been sent to potential purchasers in Japan for assessment. All woodchips produced from Scheme 1 will be exported through the port of Albany in Western Australia. As a Grower in Scheme 2, once harvest operations commence at Bremer Bay on Scheme 1, harvest

5 operations will continue in sequential order until all harvestable areas of all schemes at Bremer Bay are harvested. If the Consolidated Licence and Management Agreement is not extended then the Manager will extend the Head Lease and the Trees will become the property of the Manager. Resolution 2 (Extension of Term of the Lease Agreements by 2 years) The Responsible Entity also requires the approval of the Growers in General Meeting before the Responsible Entity can extend the term of the Lease Agreements (being leases to the Responsible Entity, not to Growers). This is because the extension of the Consolidated Licence and Management Agreement will require Growers to incur additional fees which were not provided for in the Disclosure Documents. There are two Lease Agreements, a Head-Lease and a sub-lease called the Sub-Lease to RE. See the definitions for a more detailed description of the Lease Agreements. If the Growers do not approve the extension of the Lease Agreements then the Manager will extend the Head Lease on its own behalf and become the owner of the Trees in its own right. The extension of the term of the Head-Leases is for a period of 2 years to 30 June IS THE FUNDING OF GUNNS GOOD FOR GROWERS? On 8 February 2012, Tasmanian forestry company Gunns announced that Richard Chandler Corporation of Singapore was proposing to invest $150m to acquire a 39% interest in the company. The most recent announcement (22 February 2012) is that due diligence on the proposal is expected to be completed next month and that Richard Chandler Corporation is looking to create employment and a sustainable industry through the investment. By the time the meeting is to be held, there may be further announcements. As has also been well publicised over the last decade, Gunns is proposing a pulp mill in Tasmania for which it will require woodfibre from Tasmania, Victoria and South Australia. Gunns purchased control of the Great Southern schemes to secure this woodfibre for their proposed pulp mill. The Chairman of the Responsible Entity and the Chief Executive Officer of RuralAus have both spoken to Gunns in recent months. We understand that Gunns is working on a whole of Island solution and plans to resolve the transport issues with a view to woodfibre on Kangaroo Island being available for its proposed pulp mill. Further investigation is required to consider a number of transport solutions for the woodfibre from the island. For these reasons, it is not possible to give any prediction as to return to Growers if and when the mill and a port facility are in operation. Currently, the strong Australian dollar is making it difficult for Australian woodchip suppliers to compete with suppliers of woodchips from overseas, particularly Vietnam and Chile. Prices have fallen from between 5 and 25%. Primary Securities is the responsible entity for six schemes on Kangaroo Island: four of the Australian Growth schemes, the Viento scheme and the Treecorp scheme, most of which we have taken over from the original responsible entities. The problem of no port facility and no other method of using the timber from the Trees growing on Kangaroo Island is common to growers in all of these schemes. Our schemes total about 6,000 Ha and Gunns operate schemes of around 10,000 Ha. We believe that the growers in all these schemes might be interested in offering to Gunns partial funding for a port facility, to give value to their Trees. One of our directors is negotiating with the various parties to see whether or not a grower-assisted solution might be useful. This would be on the basis of growers contributing to the capital cost of a port facility.

6 If any Growers are interested in looking at a proposal to assist with such funding, please let us know. The Manager of the scheme, RuralAus has purchased the mill at Kangaroo Island and is developing a proposal for a co-generation plant to burn mill and harvest residue. 3. ADVANTAGES OF THE PROPOSED RESOLUTIONS The Proposed resolutions offer the following advantages for Growers: This Proposal enables the continuation of the Project to take advantage of demand assuming funding for Gunns increases the likelihood of the paper mill being commissioned in a timely way. If Growers do not approve the Proposal, then the Growers will lose their interests in the Trees and will receive no return on their investments. Growers will retain the right to receive proceeds from the harvest of their Trees. It gives Growers the best chance under the circumstances to see a return despite the need to make further payments in the form of additional Licence and Management Fees. If the Growers do not extend the Project the Manager has indicated that the Manager will extend the Lease Agreements personally. 4. DISADVANTAGES OF THE PROPOSED RESOLUTIONS The Resolutions involving amendments to the Project Documents are Special resolutions because elements of them are adverse to the existing rights of Growers under the Project. The law requires that such amendments are made by a Special resolution of members of a managed investment scheme. The key aspects of the Proposal that affect Growers adversely are: No guarantee that the Trees on Kangaroo Island will be sold; A requirement to pay additional Licence and Management Fees for an additional two years. The Licence Fees are substantially more than the Licence Fees paid pursuant to the original licence. 5. RISKS It is important that Growers read this information carefully as there are risks associated with extending the Scheme and the timing of the harvest. There are risks faced by Growers of a similar nature as those disclosed in the Prospectus under which Growers acquired their interest in the Project. These risks are similar to those of any agricultural venture and include: Risk that a port facility will not be built on Kangaroo Island on or before Trees can be harvested. Risk that a co-generation plant is not built on Kangaroo Island on or before Trees can be harvested. Risk that only a cogeneration plant is built on Kangaroo Island and no port facility thereby reducing the market value of the wood. Risk that the Australian Dollar will remain high and the markets for the wood produce will shrink or disappear completely. Risk that a substantial volume of wood produce will become available as a result of the failure of many of the major wood production corporations and this will reduce the price of timber.

7 Risk that the Project will fail to deliver volumes of wood produce envisaged in the original Prospectus or the current reports provided by the foresters. Risk that the volumes harvested will be detrimentally affected by damage caused by insects, termites and other pests. Risk that the price of the timber may decrease between now and harvest. Market and commercial risk such as reduced demand for wood, technological advances, increased costs associated with harvesting and delivery. Environmental risk such as drought, flood, cyclones, wind, hail, insects, pests, fire and diseases. Risk of change to government legislation (including taxation legislation). 6. WHAT TO DO TO SUPPORT THE PROPOSAL You should carefully consider the Proposal and seek independent professional, financial and taxation advice. If you would like the Proposal to proceed, you should vote in favour of all of the resolutions by: (a) (b) submitting your Proxy Form and voting in favour of all of the resolutions; or attending the Meeting in person and voting in favour of all of the resolutions.

8 7. GLOSSARY 1999 Growers means those Growers who became Growers (or their predecessor became Growers) as a result of making an application either sometime in 1999 or in 2000 to become a Grower under the Plantation Forestry Hardwood Project No 2 ARSN dated 18 June 1999; 2000 Growers means those Growers who became Growers (or their predecessor became Growers) as a result of making an application in 2000 to become a Grower under the Plantation Forestry Hardwood Project No 2 ARSN dated 18 January 2000; Bremer Bay Land means: Toocalup being part of Lot 1738 on Deposited Plan being that portion contained in Deposited Plan and being part of the land in Certificate of Title Volume 1687 Folio 667 and part of Lot 1739 on Deposited Plan being that portion contained in Deposited Plan and being part of the land in Certificate of Title Volume 2068 Folio 461; Top Block being part of Lot 1566 on Deposited Plan and being the whole of the land in Certificate of Title Volume 1792 Folio 47; Myamba being part of Lot 50 on Deposited Plan and being the whole of the land in Certificate of Title Volume 2208 Folio 460; Old Myamba being part of Lot 1321 and being the whole of the land in Certificate of Title Volume 1947 Folio 774; Consolidated Licence and Management Agreement means the agreement entered into between the Grower, the Responsible Entity and the Land Company set out in the Consolidated Licence and Management Agreement dated 14 October 2005 and any other agreements as may be in force for the time being modifying or repealing and replacing the Consolidated Licence and Management Agreement; Constitution means the Constitution of the Scheme lodged with ASIC on 14 January 2000 and includes any agreement which varies or replaces that Constitution, as is being referred to in the circumstances; Disclosure Documents means either the prospectus or product disclosure statement with respect to Scheme 2; EM means this Explanatory Memorandum; Gross Proceeds of Sale has the meaning set out in the Constitution; Grower means any person who for the time being is shown in the Register as a Grower; Gunns means Gunns Limited; Head Lease means registered leases: (a) (b) being Lease K between made between the Land Company, as registered proprietor, and the Manager, as lessee, and the Responsible Entity, as the responsible entity, with respect to Old Myamba being part of the Bremer Bay Land; being Lease K made between the Land Company as registered proprietor, and the Manager, as lessee, and the Responsible Entity, as the responsible entity, with respect to Top Block being part of the Bremer Bay Land;

9 (c) (d) being Lease K made between the Land Company as registered proprietor, and the Manager, as lessee, and the Responsible Entity, as the responsible entity, with respect to Myamba being part of the Bremer Bay Land; being Lease K made between the Land Company as registered proprietor, and the Manager, as lessee, and the Responsible Entity, as the responsible entity, with respect to Toocalup being part of the Bremer Bay Land; (e) being the lease with made between the Land Company as registered proprietor, and the Manager, as lessee, and the Responsible Entity, as the responsible entity, with respect to the Kangaroo Island Land; Kangaroo Island Land means: North East River Cronins being part of Section 92 in the Hundred of Newland, County of Carvarvon and being the whole of the land in Register Book Volume 1320 Folio 19; Brookland Park being part of Allotment 51 in Deposited Plan in the area named Karatta Hundred of Ritchie and being the whole of the land in Certificate of Title Volume 5813 Folio 274; Wingara being part of Section 19 in the Hundred of Ritchie in County on Carnavon and being the whole of the land in Certificate of Title Volume 1438 Folio 14; Land means Bremer Bay Land and Kangaroo Island Land; Land Company means Australian Growth Landholdings Limited ACN ; Land Owner means the registered proprietor for the time being of land the subject of the Scheme; Lease Agreements means the Head Leases and the Sub-leases to RE; Licence Fee is the fee payable for the rights of the Grower with respect to the Woodlot Licence; Management Fee is the fee payable to the Manager for carrying out the administrative and management duties under the Consolidated Licence and Management Agreement; Manager means RURALAUS PLANTATION MANAGEMENT PTY LTD ACN or its successors and assigns. Register means that part of the register of Growers kept pursuant to Chapter 2C of the Corporations Act in relation to Scheme 2 on which is kept details of the Growers; Responsible Entity means PRIMARY SECURITIES LTD, ACN , a company incorporated in Australia, holder of Australian Financial Services Licence No and having its registered office at 13 Nairn Street, Fremantle, Western Australia, 6160; Scheme 1 means Plantation Forestry Hardwood Project ARSN (the first Australian Growth Scheme); Scheme or Scheme 2 means the managed investment scheme known as Plantation Forestry Hardwood Project No. 2 ARSN established pursuant to the Constitution; Special resolution means a resolution so called which 21 days notice (as described in the Corporations Act, 2001) has been given to the Growers and must be passed by Growers holding at least 75% of the votes of Growers present and voting on the resolution at the meeting (either in person or by proxy); Sub-Lease to RE means a registered sub lease:

10 (a) (b) (c) (d) (e) being Sub-Lease K between the Manager and the Responsible Entity with respect to Old Myamba being part of the Bremer Bay Land; being Sub-Lease K between the Manager and the Responsible Entity with respect to Top Block being part of the Bremer Bay Land; being Sub-Lease K between the Manager and the Responsible Entity with respect to Myamba being part of the Bremer Bay Land; being Sub-Lease K between the Manager and the Responsible Entity with respect to Toocalup being part of the Bremer Bay Land; being Sub-lease made between the Manager and the Responsible Entity with respect to the Kangaroo Island Land; Treecorp means Treecorp Clearwood Project ARSN ; Trees means the crop of eucalyptus globulus trees farmed on the Grower s Woodlots for harvest and sale; Woodlot Licences means the licences entered into by those Growers in Scheme 2 with respect to the establishment of a eucalyptus globulus plantation pursuant to the Consolidated Licence and Management Agreement; Woodlot means those portions of the Land the subject of the Woodlot Licences and upon which Trees are grown; Viento Scheme means Viento Kangaroo Island Plantations 2002 ARSN

11 P RIMARY S ECURITIES L TD ABN AFSL No PO Box 732 FREMANTLE WA 6959 Tel: Fax: admin@primarysecurities.com.au Website: NOTICE OF A MEETING OF MEMBERS OF 2000 GROWERS CLASS OF AUSTRALIAN GROWTH TIMBER PROJECT NO 3 ARSN NOTICE is hereby given that a Meeting of Members of Australian Growth Timber Project No 3 ARSN will be held at 2.00 pm on Monday 26 March 2012 at Kulcha, Level 1, 13 South Terrace, Fremantle, Western Australia. BUSINESS 1. Extension of Term of Consolidated Lease and Management Agreement To consider, and if thought fit, to pass the following resolution as a Special resolution: That the Consolidated Lease and Management Agreement be varied so that: (a) the termination date is changed from 30 June 2013 to 30 June 2014; (b) the Management Fee payable for the Financial Year commencing on 30 June 2013 and expiring on 30 June 2014 will continue to be Indexed and invoiced as in previous years. That is the Management Fee will be Indexed and payable in accordance with sub-clause 14.1(b) of the Consolidated Lease and Management Agreement; (c) the Lease Fee payable for the Financial Year commencing on 30 June 2012 and expiring on 30 June 2014 shall be the amount payable by the Manager to the Land Owner pursuant to the proposed extension of lease payable per year per Woodlot as follows: (i) (j) Each year s Lease Fee per Woodlot shall be payable in accordance with sub-clause 4.1(b)of the Consolidated Lease and Management Agreement; and the balance deducted from the Gross Proceeds of Sale.

12 2 2. Extension of Term of the Lease Agreements To consider, and if thought fit, to pass the following resolution as an Ordinary resolution: That the Growers authorize the Responsible Entity to extend the Lease Agreements for an additional term expiring on 30 June 2014 at the rent of $ per hectare (with respect to Bremer Bay land) and the current market value with respect to Kangaroo Island Land being $ per hectare) payable in accordance with resolution 1 of this Meeting but otherwise on the same terms and conditions as set out in the current Lease Agreements. By order of Primary Securities Ltd as Responsible Entity Robert Garton Smith Managing Director Notes a. If you are unable to attend the meeting please complete and return the proxy form which forms part of this notice of meeting. b. A Special resolution must be passed by Growers holding at least 75% of the votes of Growers present and voting on the resolution at the meeting (either in person or by proxy) c. An Ordinary resolution must be passed by Growers holding at least 50% of the votes of Growers present and voting on the resolution at the meeting (either in person or by proxy) d. Please see attached Explanatory Memorandum giving the reasons for the above resolution.

13 EXPLANATORY MEMORANDUM 1. REASONS FOR MEETING The Consolidated Lease and Management Agreement is the agreement under which the Responsible Entity grants to you your interests in the Woodlots and Trees and provides for the maintenance and harvest of the Trees. The Consolidated Lease and Management Agreement expires on 30 June Scheme 3 has two classes of Grower, 2000 Growers and 2001 Growers. All of the Growers Woodlots are situated either at Bremer Bay or on Kangaroo Island. The cost structures are different for each class hence the separate meetings for each class. All Growers share in the proceeds of sale of all trees, irrespective of where their Woodlots are located or which class of Grower they are part of. Due to market conditions resulting from the global financial crisis and the rise in the Australian dollar, the Trees have not been harvested and cannot be harvested before 29 June The Responsible Entity wishes to extend the term of the Consolidated Lease and Management Agreement for 1 year with the object of harvesting the Trees prior to that date. If this is not possible, there will be an additional meeting to extend the Term for another year (in the case of the Bremer Bay Trees) or to extend the Term for an additional two years (in the case of the Kangaroo Island Trees). The purpose for this meeting is to obtain the approval of the Growers to: 1. extend the term of the Scheme by 1 year by extending the term of the Scheme and the Consolidated Lease and Management Agreement; and 2. authorize the Responsible Entity to arrange the extension of the Lease Agreements under which the rights of the Growers depend. Resolution 1 (Extension of Term of Lease & Management Agreement & Scheme) If the Growers approve, the Consolidated Lease and Management Agreement will continue for an additional year. The annual Management Fee will continue to be Indexed and invoiced as per previous years. The Management Fee for the 2011/2012 Financial Year was $ If we assume the Index for each year of the extended term of the Scheme is 3% then the Management Fee payable for the 2012/13 Financial Year will be $ per Woodlot and the Management Fee for the 2013/2014 Financial Year will be $ per Woodlot for 2000 Growers. The Lease Fee payable by the Growers will be increased to $ per year per Woodlot. The annual Lease Fee will continue to be Indexed and invoiced as per previous years with the balance being paid from Gross Proceeds of Sale. Current market rent for land in the Bremer Bay area is $ per Woodlot whereas it is $ per Woodlot per annum on Kangaroo Island (which averages out at $ per year per Woodlot). The reason for the increase in the Lease Fee is because the Manager has been paying the difference between the current Lease Fee and the market rent payable under the Head Leases for the property upon which the Woodlots are situated. The Manager will not continue to do this. The Lease Fee for the 2011/2012 Financial Year was $ If we assume the Index for each year of the extended term of the Scheme is 3% then the Lease Fee payable for the 2012/13 Financial Year will be $ per Woodlot and the Lease Fee for the 2013/2014 Financial Year will

14 be $ per Woodlot for 2000 Growers and the balance will be payable from the Gross Proceeds of Sale. During the additional term, the Trees on Bremer Bay will be harvested. The Manager has begun harvest planning in preparation for the commencement of harvest of Scheme 1. Sample woodchips have been sent to potential purchasers in Japan for assessment. All woodchips produced from Scheme 1 will be exported through the port of Albany in Western Australia. As a Grower in Scheme 3, once harvest operations commence at Bremer Bay on Scheme 1, harvest operations will continue in sequential order until all harvestable areas of all schemes at Bremer Bay are harvested. If the Consolidated Lease and Management Agreement is not extended then the Manager will extend the Head Lease and the Trees will become the property of the Manager. Resolution 2 (Extension of Term of the Lease Agreements by 2 years) The Responsible Entity also requires the approval of the Growers in General Meeting before the Responsible Entity can extend the term of the Lease Agreements (being leases to the Responsible Entity, not to Growers). This is because the extension of the Consolidated Lease and Management Agreement will require Growers to incur additional fees which were not provided for in the Disclosure Documents. There are two Lease Agreements, a Head-Lease and a sub-lease called the Sub-Lease to RE. See the definitions for a more detailed description of the Lease Agreements. If the Growers do not approve the extension of the Lease Agreements then the Manager will extend the Head Lease on its own behalf and become the owner of the Trees in its own right. The extension of the term of the Head-Leases is for a period of 2 years to 30 June IS THE FUNDING OF GUNNS GOOD FOR GROWERS? On 8 February 2012, Tasmanian forestry company Gunns announced that Richard Chandler Corporation of Singapore was proposing to invest $150m to acquire a 39% interest in the company. The most recent announcement (22 February 2012) is that due diligence on the proposal is expected to be completed next month and that Richard Chandler Corporation is looking to create employment and a sustainable industry through the investment. By the time the meeting is to be held, there may be further announcements. As has also been well publicised over the last decade, Gunns is proposing a pulp mill in Tasmania for which it will require woodfibre from Tasmania, Victoria and South Australia. Gunns purchased control of the Great Southern schemes to secure this woodfibre for their proposed pulp mill. The Chairman of the Responsible Entity and the Chief Executive Officer of RuralAus have both spoken to Gunns in recent months. We understand that Gunns is working on a whole of Island solution and plans to resolve the transport issues with a view to woodfibre on Kangaroo Island being available for its proposed pulp mill. Further investigation is required to consider a number of transport solutions for the woodfibre from the island. For these reasons, it is not possible to give any prediction as to return to Growers if and when the mill and a port facility are in operation. Currently, the strong Australian dollar is making it difficult for Australian woodchip suppliers to compete with suppliers of woodchips from overseas, particularly Vietnam and Chile. Prices have fallen from between 5 and 25%. Primary Securities is the responsible entity for six schemes on Kangaroo Island: four of the Australian Growth schemes, the Viento scheme and the Treecorp scheme, most of which we have taken over from the original responsible entities. The problem of no port facility and no other method of using the timber from the Trees growing on Kangaroo Island is common to growers in all of these schemes. Our schemes total about 6,000 Ha and Gunns operate schemes of around 10,000 Ha.

15 We believe that the growers in all these schemes might be interested in offering to Gunns partial funding for a port facility, to give value to their Trees. One of our directors is negotiating with the various parties to see whether or not a grower-assisted solution might be useful. This would be on the basis of growers contributing to the capital cost of a port facility. If any Growers are interested in looking at a proposal to assist with such funding, please let us know. The Manager of the scheme, RuralAus has purchased the mill at Kangaroo Island and is developing a proposal for a co-generation plant to burn mill and harvest residue. 3. ADVANTAGES OF THE PROPOSED RESOLUTIONS The Proposed resolutions offer the following advantages for Growers: This Proposal enables the continuation of the Project to take advantage of demand assuming funding for Gunns increases the likelihood of the paper mill being commissioned in a timely way. If Growers do not approve the Proposal, then the Growers will lose their interests in the Trees and will receive no return on their investments. Growers will retain the right to receive proceeds from the harvest of their Trees. It gives Growers the best chance under the circumstances to see a return despite the need to make further payments in the form of additional Lease and Management Fees. If the Growers do not extend the Project the Manager has indicated that the Manager will extend the Lease Agreements personally. 4. DISADVANTAGES OF THE PROPOSED RESOLUTIONS The Resolutions involving amendments to the Project Documents are Special resolutions because elements of them are adverse to the existing rights of Growers under the Project. The law requires that such amendments are made by a Special resolution of members of a managed investment scheme. The key aspects of the Proposal that affect Growers adversely are: No guarantee that the Trees on Kangaroo Island will be sold; A requirement to pay additional Lease and Management Fees for an additional two years. The Lease Fees are substantially more than the Lease Fees paid pursuant to the original Lease. 5. RISKS It is important that Growers read this information carefully as there are risks associated with extending the Scheme and the timing of the harvest. There are risks faced by Growers of a similar nature as those disclosed in the Prospectus under which Growers acquired their interest in the Project. These risks are similar to those of any agricultural venture and include: Risk that a port facility will not be built on Kangaroo Island on or before Trees can be harvested. Risk that a co-generation plant is not built on Kangaroo Island on or before Trees can be harvested. Risk that only a cogeneration plant is built on Kangaroo Island and no port facility thereby reducing the market value of the wood. Risk that the Australian Dollar will remain high and the markets for the wood produce will shrink or disappear completely.

16 Risk that a substantial volume of wood produce will become available as a result of the failure of many of the major wood production corporations and this will reduce the price of timber. Risk that the Project will fail to deliver volumes of wood produce envisaged in the original Prospectus or the current reports provided by the foresters. Risk that the volumes harvested will be detrimentally affected by damage caused by insects, termites and other pests. Risk that the price of the timber may decrease between now and harvest. Market and commercial risk such as reduced demand for wood, technological advances, increased costs associated with harvesting and delivery. Environmental risk such as drought, flood, cyclones, wind, hail, insects, pests, fire and diseases. Risk of change to government legislation (including taxation legislation). 6. WHAT TO DO TO SUPPORT THE PROPOSAL You should carefully consider the Proposal and seek independent professional, financial and taxation advice. If you would like the Proposal to proceed, you should vote in favour of all of the resolutions by: (a) (b) submitting your Proxy Form and voting in favour of all of the resolutions; or attending the Meeting in person and voting in favour of all of the resolutions.

17 7. GLOSSARY 2000 Growers means those Growers who became Growers (or their predecessor became Growers) as a result of making an application either sometime in 2000 or 2001 to become a Grower under the Plantation Forestry Hardwood Project No 3 ARSN dated 22 June 2000; 2001 Growers means those Growers who became Growers (or their predecessor became Growers) as a result of making an application in 2001 to become a Grower under the Australian Growth Timber Project No 3 ARSN dated 22 June 2000; Bremer Bay Land means the property known as Old Myamba being part of Lot 1321 and being the whole of the land in Certificate of Title Volume 1947 Folio 774; Consolidated Lease and Management Agreement means the agreement entered into between the Grower, the Responsible Entity and the Land Company set out in the Consolidated Lease and Management Agreement dated 14 October 2005 and any other agreements as may be in force for the time being modifying or repealing and replacing the Consolidated Lease and Management Agreement; Constitution means the Constitution of the Scheme lodged with ASIC on 30 May 2000 and includes any agreement which varies or replaces that Constitution, as is being referred to in the circumstances; Disclosure Documents means either the prospectus or product disclosure statement with respect to Scheme 3; EM means this Explanatory Memorandum; Financial Year means the twelve month period commencing on 1 July of a year and ending on 30 June of the following year; Gross Proceeds of Sale has the meaning set out in the Constitution; Grower means any person who for the time being is shown in the Register as a Grower; Gunns means Gunns Limited; Head Lease means registered leases: (a) (b) being Lease K between made between the Land Company, as registered proprietor, and the Manager, as lessee, and the Responsible Entity, as the responsible entity, with respect to Old Myamba being part of the Bremer Bay Land; and being the lease with made between the Land Company as registered proprietor, and the Manager, as lessee, and the Responsible Entity, as the responsible entity, with respect to the Kangaroo Island Land; Indexed means increased annually by the aggregate percentage change in the Consumer Price Index (All Groups)(Perth) for the previous FOUR (4) quarters most recently published by the Australian Bureau of Statistics to that date; Kangaroo Island Land means: North East River Cronins being part of Section 92 in the Hundred of Newland, County of Carvarvon and being the whole of the land in Register Book Volume 1320 Folio 19; Brookland Park being part of Allotment 51 in Deposited Plan in the area named Karatta Hundred of Ritchie and being the whole of the land in Certificate of Title Volume 5813 Folio 274;

18 Wingara being part of Section 19 in the Hundred of Ritchie in County on Carnavon and being the whole of the land in Certificate of Title Volume 1438 Folio 14; Land means Bremer Bay Land and Kangaroo Island Land; Land Company means Australian Growth Landholdings Limited ACN ; Land Owner means the registered proprietor for the time being of land the subject of the Scheme; Lease Agreements means the Head Leases and the Sub-leases to RE; Lease Fee is the fee payable for the rights of the Grower with respect to the Woodlot Lease; Management Fee is the fee payable to the Manager for carrying out the administrative and management duties under the Consolidated Lease and Management Agreement; Manager means RURALAUS PLANTATION MANAGEMENT PTY LTD ACN or its successors and assigns. Register means that part of the register of Growers kept pursuant to Chapter 2C of the Corporations Act in relation to Scheme 3 on which is kept details of the Growers; Responsible Entity means PRIMARY SECURITIES LTD, ACN , a company incorporated in Australia, holder of Australian Financial Services Licence No and having its registered office at 13 Nairn Street, Fremantle, Western Australia, 6160; Scheme 1 means Plantation Forestry Hardwood Project ARSN (the first Australian Growth Scheme); Scheme or Scheme 3 means the managed investment scheme known as Australian Growth Timber Project No 3 ARSN established pursuant to the Constitution; Special resolution means a resolution so called which 21 days notice (as described in the Corporations Act, 2001) has been given to the Growers and must be passed by Growers holding at least 75% of the votes of Growers present and voting on the resolution at the meeting (either in person or by proxy); Sub-Lease to RE means registered sub leases: (a) (b) being Sub-Lease K between the Manager and the Responsible Entity with respect to Old Myamba being part of the Bremer Bay Land; being Sub-lease made between the Manager and the Responsible Entity with respect to the Kangaroo Island Land; Treecorp means Treecorp Clearwood Project ARSN ; Trees means the crop of eucalyptus globulus trees farmed on the Grower s Woodlots for harvest and sale; Woodlot Leases means the leases entered into by those Growers in Scheme 3 with respect to the establishment of a eucalyptus globulus plantation pursuant to the Consolidated Lease and Management Agreement; Woodlot means those portions of the Land the subject of the Woodlot Leases and upon which Trees are grown; Viento Scheme means Viento Kangaroo Island Plantations 2002 ARSN

19 P RIMARY S ECURITIES L TD ABN AFSL No PO Box 732 FREMANTLE WA 6959 Tel: Fax: admin@primarysecurities.com.au Website: NOTICE OF A MEETING OF MEMBERS OF 2001 GROWERS CLASS OF AUSTRALIAN GROWTH TIMBER PROJECT NO 3 ARSN NOTICE is hereby given that a Meeting of Members of Australian Growth Timber Project No 3 ARSN will be held at 2.00 pm on Monday 26 March 2012 at Kulcha, Level 1, 13 South Terrace, Fremantle, Western Australia. BUSINESS 1. Extension of Term of Consolidated Lease and Management Agreement To consider, and if thought fit, to pass the following resolution as a Special resolution: That the Consolidated Lease and Management Agreement be varied so that: (a) the termination date is changed from 30 June 2013 to 30 June 2014; (b) the Management Fee payable for the Financial Year commencing on 30 June 2013 and expiring on 30 June 2014 will continue to be Indexed and invoiced as in previous years. That is the Management Fee will be Indexed and payable in accordance with sub-clause 14.1(b) of the Consolidated Lease and Management Agreement; (c) the Lease Fee payable for the Financial Year commencing on 30 June 2012 and expiring on 30 June 2014 shall be the amount payable by the Manager to the Land Owner pursuant to the proposed extension of lease payable per year per Woodlot as follows: (i) (ii) Each year s Lease Fee per Woodlot shall be payable in accordance with sub-clause 4.1(b)of the Consolidated Lease and Management Agreement; and the balance deducted from the Gross Proceeds of Sale.

20 2. Extension of Term of the Lease Agreements To consider, and if thought fit, to pass the following resolution as an Ordinary resolution: That the Growers authorize the Responsible Entity to extend the Lease Agreements for an additional term expiring on 30 June 2014 at the rent of $ per hectare (with respect to Bremer Bay land) and the current market value with respect to Kangaroo Island Land being $ per hectare) payable in accordance with resolution 1 of this Meeting but otherwise on the same terms and conditions as set out in the current Lease Agreements. By order of Primary Securities Ltd as Responsible Entity Robert Garton Smith Managing Director Notes a. If you are unable to attend the meeting please complete and return the proxy form which forms part of this notice of meeting. b. A Special resolution must be passed by Growers holding at least 75% of the votes of Growers present and voting on the resolution at the meeting (either in person or by proxy) c. An Ordinary resolution must be passed by Growers holding at least 50% of the votes of Growers present and voting on the resolution at the meeting (either in person or by proxy) d. Please see attached Explanatory Memorandum giving the reasons for the above resolution.

21 EXPLANATORY MEMORANDUM 1. REASONS FOR MEETING The Consolidated Lease and Management Agreement is the agreement under which the Responsible Entity grants to you your interests in the Woodlots and Trees and provides for the maintenance and harvest of the Trees. The Consolidated Lease and Management Agreement expires on 30 June Scheme 3 has two classes of Grower, 2000 Growers and 2001 Growers. All of the Growers Woodlots are situated either at Bremer Bay or on Kangaroo Island. The cost structures are different for each class hence the separate meetings for each class. All Growers share in the proceeds of sale of all trees, irrespective of where their Woodlots are located or which class of Grower they are part of. Due to market conditions resulting from the global financial crisis and the rise in the Australian dollar, the Trees have not been harvested and cannot be harvested before 29 June The Responsible Entity wishes to extend the term of the Consolidated Lease and Management Agreement for 1 year with the object of harvesting the Trees prior to that date. If this is not possible, there will be an additional meeting to extend the Term for another year (in the case of the Bremer Bay Trees) or to extend the Term for an additional two years (in the case of the Kangaroo Island Trees). The purpose for this meeting is to obtain the approval of the Growers to: 1. extend the term of the Scheme by 1 year by extending the term of the Scheme and the Consolidated Lease and Management Agreement; and 2. authorize the Responsible Entity to arrange the extension of the Lease Agreements under which the rights of the Growers depend. Resolution 1 (Extension of Term of Lease & Management Agreement & Scheme) If the Growers approve, the Consolidated Lease and Management Agreement will continue for an additional year. The annual Management Fee will continue to be Indexed and invoiced as per previous years. The Management Fee for the 2011/2012 Financial Year was $ If we assume the Index for each year of the extended term of the Scheme is 3% then the Management Fee payable for the 2012/13 Financial Year will be $ per Woodlot and the Management Fee for the 2013/2014 Financial Year will be $ per Woodlot for 2001 Growers. The Lease Fee payable by the Growers will be increased to $ per year per Woodlot. The annual Lease Fee will continue to be Indexed and invoiced as per previous years with the balance being paid from Gross Proceeds of Sale. Current market rent for land in the Bremer Bay area is $ per Woodlot whereas it is $ per Woodlot per annum on Kangaroo Island (which averages out at $ per year per Woodlot). The reason for the increase in the Lease Fee is because the Manager has been paying the difference between the current Lease Fee and the market rent payable under the Head Leases for the property upon which the Woodlots are situated. The Manager will not continue to do this. The Lease Fee for the 2011/2012 Financial Year was $ If we assume the Index for each

22 year of the extended term of the Scheme is 3% then the Lease Fee payable for the 2012/13 Financial Year will be $ per Woodlot and the Lease Fee for the 2013/2014 Financial Year will be $ per Woodlot for 2001 Growers and the balance will be payable from the Gross Proceeds of Sale. During the additional term, the Trees on Bremer Bay will be harvested. The Manager has begun harvest planning in preparation for the commencement of harvest of Scheme 1. Sample woodchips have been sent to potential purchasers in Japan for assessment. All woodchips produced from Scheme 1 will be exported through the port of Albany in Western Australia. As a Grower in Scheme 3, once harvest operations commence at Bremer Bay on Scheme 1, harvest operations will continue in sequential order until all harvestable areas of all schemes at Bremer Bay are harvested. If the Consolidated Lease and Management Agreement is not extended then the Manager will extend the Head Lease and the Trees will become the property of the Manager. Resolution 2 (Extension of Term of the Lease Agreements by 2 years) The Responsible Entity also requires the approval of the Growers in General Meeting before the Responsible Entity can extend the term of the Lease Agreements (being leases to the Responsible Entity, not to Growers). This is because the extension of the Consolidated Lease and Management Agreement will require Growers to incur additional fees which were not provided for in the Disclosure Documents. There are two Lease Agreements, a Head-Lease and a sub-lease called the Sub-Lease to RE. See the definitions for a more detailed description of the Lease Agreements. If the Growers do not approve the extension of the Lease Agreements then the Manager will extend the Head Lease on its own behalf and become the owner of the Trees in its own right. The extension of the term of the Head-Leases is for a period of 2 years to 30 June IS THE FUNDING OF GUNNS GOOD FOR GROWERS? On 8 February 2012, Tasmanian forestry company Gunns announced that Richard Chandler Corporation of Singapore was proposing to invest $150m to acquire a 39% interest in the company. The most recent announcement (22 February 2012) is that due diligence on the proposal is expected to be completed next month and that Richard Chandler Corporation is looking to create employment and a sustainable industry through the investment. By the time the meeting is to be held, there may be further announcements. As has also been well publicised over the last decade, Gunns is proposing a pulp mill in Tasmania for which it will require woodfibre from Tasmania, Victoria and South Australia. Gunns purchased control of the Great Southern schemes to secure this woodfibre for their proposed pulp mill. The Chairman of the Responsible Entity and the Chief Executive Officer of RuralAus have both spoken to Gunns in recent months. We understand that Gunns is working on a whole of Island solution and plans to resolve the transport issues with a view to woodfibre on Kangaroo Island being available for its proposed pulp mill. Further investigation is required to consider a number of transport solutions for the woodfibre from the island. For these reasons, it is not possible to give any prediction as to return to Growers if and when the mill and a port facility are in operation. Currently, the strong Australian dollar is making it difficult for Australian woodchip suppliers to compete with suppliers of woodchips from overseas, particularly Vietnam and Chile. Prices have fallen from between 5 and 25%. Primary Securities is the responsible entity for six schemes on Kangaroo Island: four of the Australian Growth schemes, the Viento scheme and the Treecorp scheme, most of which we have taken over from the original responsible entities. The problem of no port facility and no