R CBA.0001.0380.016e I ! RECEIVED INDEPENDENT PROPERTY ADVISORS 2 2 SEP 2006 CONSULTANCY | Rural ^ Herron Todd m» SERVICES Pro-forma Report ^ IKMs, OLD, Client/Instructing Party: Commonwealth Bank of Australia Business Unit/Address: Risk Management Property Consultants (Qld) Tel; 07 3237 3275 Fax: 07 3237 3043 GPO Box 1423, Brisbane 4000 For Attention: Alec Crombie Borrower/Applicant: Comanche Grazing Co Pty Ltd Reference/Job No. 6091230 Instructions; To assess the market value of the property for mortgage security purposes on behalf of Commonwealth Bank of Australia. 1. PROPERTY SUMMARY Lake Learmonth Type of Property: Freehold/Leasehold - Grazing Address: | Yaamba Real Property Description: Freehold and leasehold land as described on the attached schedule. Title Reference: Refer to schedule. Special Lease Details: I area - 94,9ha Term; 20 years commencing 1 July 1992 Expiry; 30 June 2012 Purpose: Grazing only Conditions: Standard / Restrictive Location: Description; Timbered, mostly flood affected forest and swamps onto permanent water. Encumbrances/ Restr’ns: None detrimental to title as revealed on the Title Searches. Copies are annexed to this report. Note; We are advised by solicitors acting for the purchasers that:- An "Area Management Advice" from Queensland EPA that unexploded ordnance exists In area about 2554ha) in the north­ western corner of the property. This Is undulating mostly rung forest country including the timbered Sugarloaf Mountain in Areas of regrowth in the old rung country are now being rechained by the purchaser. We are aware that exploded and unexploded ordnance has been located and reported in the past and that cost to have the area cleared to remove the advice Is prohibitive. The advice effectively prohibits subdivision for resale In small blocks. Conclusion: While retained in use for non Intensive grazing as part of the aggregation (as the land has been operated by previous owners) we do not consider the declaration reduces grazing value of this useful forest country. Assumptions And Qualifications: ■ Clear chemical residue status. » The Vendor has not been served with a compliance notice or a show cause notice under the Vegetation Management Act 1999. ■ This valuation Is assessed on an Improved basis/bare of livestock, plant and equipment and GST exclusive. • The farm centre pivot Irrigation scheme Is operating efficiently to water the four circles. * Organic Certification of the property and new management is transferred by Australian Certified Organic Pty Ltd and that Agreement to supply Australia Country Choice (ACC) is signed to continue supply of organic beef from the property (refer Paragraph 4.3). Land Area: Freehold 6369.5ha Leasehold 94,9ha Total Approx, 6464,Oha Zoning: Rural, LGA: Livingstone Shire Council. F:\DQCI2006Word Q6\Lake Learmouth.rpt doc “LAKE LEARMOMTH". YAAMBft Page 2 of IS UCV; Not available - amalgamated with other land. Business Operation; Grazing on native and improved pastures with Irrigation assistance. Carrying Capacity or Productivity: Assessed at 2376AE (l-2.72ha) irrigation assisted in its present state. Grazing area: 6464 hectares, Area Under Cultivation: 320ha centre pivot area (not worked at sale) General Country Type: A balance of good quality forest onto the river frontage and fair forest into ridges providing a balance of flood free high land. Fencing: in fair stock proof condition, predominantly 4 wires mostly 4 barb. Some plain wires in part reinforced by old electric fencing, subdivided into 17 paddocks Waters: 21km frontage to permanent water in the Fitzroy River, scattered permanent and semi permanent lagoons. Stock and domestic pumping scheme at the homestead and 1 equipped bore. Due to drought other bores have dried up and been abandoned creating a stock water supply shortage off the river frontage. Water Entitlement: 1378MI Medium Priority Allocation ( Climate & Seasonal Conditions: 830mm rainfall district. Seasonal conditions are currently fair after recent rain and a good winter season. Pastures in the closer In / superior country are generally eatened down requiring spelling to regenerate. 2, RISK ASSESSMENT SUMMARY Lending Cautions: Marketability: □ Good 0 Average □ Moderate □ Poor Organic status and contract to supply ACC to be retained to hold value. High Average Low Quality: □ 1 0 2 03 □ 4 □ 5 3, VALUATION & ASSESSMENTS SUMMARY q yL. , rLewV-i tJl Interest Valued: Unencumbered Fee Simple in possession. s<? ‘THosa Tr% ScfAV<V Mortgage Security Value: $10,000,000 (Ten Million Dollars) Net of GST dcfa J — Assessed Land Value; $7,558,000 Adopted hectare rate: $1169 Added Value of Improvements: $375,000 Animal Area Rate: $3180AE Added Value of Allocation: $2,067,000 ($1500MI) Contract of Sale including Stock and Plant; $12,300,000 Replacement Insurance: $650,000 Recommended Documents to Sight: Nil. This valuation Is current as at the date of valuation only, The value assessed herein may change significantly and unexpectedly over a relatively short period (Including as a result of general market movements or factors specific to the particular property). We do not accept liability for losses arising from such subsequent changes in value. Without limiting the generality of the above comment, we do not assume any responsibility or accept any liability where this valuation is relied upon after the expiration of three (3) months from the date of the valuation, or such earlier date If you become aware of any factors that have any effect on the valuation. I hereby certify that I have personally inspected the above property and earned out the above valuation and assessment, This valuation has been prepared in accordance with the terms of Instructions provided by Commonwealth Bank of Australia. Neither I, nor any member of this firm, has no interest, financial or otherwise in the property subject to appraisal or with the parties with whom the Sank is dealing; Is independent to the lending transaction involved; and confirms the valuation has been prepared for mortgage lending purposes. The property has been Identified by registered plan and/or cadastral mapping and the improvements appear to be withm site boundaries. This report Is for the use only of the party to which it is addressed and its mortgage insurers for mortgage purposes and Is not to be used for any other purpose. No responsibility Is accepted or undertaken to third parties in respect thereof. This report does not constitute a site or structural survey. Inspection Date/Valuation Date ation Reference No: ROK036320 JCC:rp CBA Valuer Code: Q058 Valuer's Signature: Valuer/Qualifications/Reg.# I FAPfl mri Rfrflkto,itinn Me. MW Firm: Herron Todd White (Central Queensland) Address: PO Box 379, Rockhampton, Qld 4700 Phone: (07) 4927 4655 Fax: (07) 4922 5432 E-Mall: admin, roc khamptoncahtw.com.au The counter signatory verifies that this report is genuine and endorsed by Herron ToadwruierTneopTnioirorvaTue expressed in this report has been arrived at by the primary signature atone.‘ F \DOC\2006\Woni OSiLaka Learmouth,rpt,doC _R CBA.0001.0380.0170 i "LAKE LEARMQNTH". YMMBA Paqe.3-Dt lS 4. THE PROPERTY 4.1 The Land Zoning Effect; Complies with the provisions of the zoning. Location; Locality: This is an established grazing / rural residential district. Services: Power and telephone are connected. Mail service and school bus services are available. Vegetation Management Status; Our valuation assumes that all clearing completed on the property complies with current tree clearing policies for leasehold and freehold land under The Vegetation Management Act 1999 and that the owner advises that he has not been served with a Compliance Notice to (a) stop committing an offence; or (b) stop committing an offence and rectify the matter; or (c) rectify the matter. Chemical Residue Status: The property is Cattle Care accredited and has "Australian Certified Organic" compliance. The owners advise the property has dear status. The valuation assumes this to be correct. Land Description; This is a good forest property benefited by 21 kilometre frontage to the Fitzroy River, a balance of country types from flooded flats to ridges incorporating significant areas of flats and swamps suitable for ponded pastures or fodder crops with irrigation assistance. We estimate a total area about 2,200 hectares is affected by major flooding in the Fitzroy River but only lower terrace flats on the river and creek frontages are subject to regular flooding. Our classification of broad country types indudes;- 2,200ha Flood affected coolibah/blue gum/box/oak flats along the river, Sheepwash and Bonnie Doon / Rocky Ford / Canoona Creek frontages extending into poplar gum, paperbark, titree swampy flats, broken by runners, Pink Lily, Canoona and Lake Learmonth lagoons and areas of ironbark, box, moreton bay ash, low sand ridges. Principally grey/brown alluvial days broken by day loam ridges. Includes centre pivot areas 1 and 2 located on a day loam, coolibah/box flats. 50Qha Higher frontage sandy loam forest flats, broken by broad gullies and flood runners in the western part, extending on to the Wattlebank boundary induding centre pivot areas 3 and 4 sandy loam soils, originally timbered with narrowleaf ironbark, box, moreton bay ash containing quinine, myrtle and softwood Influence, also coolibah and gum along watercourses. 500ha High sand ridge and red loam forest ridge on the Wattlebank boundary, originally densely timbered with ironbark, gum, bloodwood, lantana, quinine and bitterbark. 2,700ha Undulating easy to moderately sloping