Loan Asset Sale – Update

23 March 2018 Loan Asset Sale - Update Allied Farmers Limited (Allied Farmers, NZX: ALF) is a party to a Deed of Assignment in relation to the sale of a receivable which it had previously written down to nil book value. The consideration payable to Allied included that if the Liquidators of Property Ventures Limited (in Liquidation) (the Company) and various of its subsidiaries succeeds in its litigation against the Company's directors and its auditors, ALF is entitled under the terms of a Deed of Assignment to a proportion of any net proceeds of that litigation (that proportion being confidential) upon completion of the litigation. On 10 January 2018 Allied advised that Allied had no further information in relation to the litigation against, or any settlement with, the Directors of the Company, and therefore was not able to provide any further guidance (provided in its 30 August 2017 update) on the proportion of the net proceeds, if any, payable to Allied. Allied has now been advised that: o the litigation against the Directors has been discontinued; o the litigation undertaken by the Liquidator of the Company has been expensive and lengthy but has now been finally concluded; o the proportion of net proceeds of the litigation payable to Allied is $441,137, subject to certification in accordance with the Deed of Assignment; and o payment of the proportion of net proceeds is expected to be received within the next five business days. Once received, this will bring the total amount received by Allied for the sale of the receivable to $541,137. Garry Bluett Chairman End CA:00315954 For:ALF Type:MKTUPDTE Time:2018-03-23 09:34:52