5th November, 2012

The Manager

Company Announcements

Australian Securities Exchange - ASX Limited

Exchange Centre

Level 6, 20 Bridge Street

Sydney NSW 2000

Via E-Lodgement

Dear Sir / Madam,

PrimeAg Australia Limited (ASX: PAG)

Attached for the market's information is the Chairman's Address to the Annual General Meeting of PrimeAg

Australia Limited.

Samantha Macansh

Company Secretary

P r i m e A g A u s t r a l i a L i m i t e d ACN 127 984 123

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PrimeAg Australia Limited Annual General Meeting Sydney, Monday 5 November 2012 Address by Roger Corbett, Chairman

Ladies and gentlemen, I am delighted to welcome you to the 2012 Annual General
Meeting of PrimeAg Australia Limited.
Before I talk about the Company's progress over the past 12 months, I would like to introduce you to the Directors of the Board and senior executives. Information regarding each of the Directors is contained in our 2012 Annual Report on pages 11-
14.
Starting from my left I would like to introduce:
• David Trebeck
• Stephen Andrew Williams
• Stephen Ray Williams
• Geoff Hewitt
• Peter Young
• Peter Corish, our Managing Director & Chief Executive Officer; and
• Samantha Macansh, our Chief Financial Officer and Company Secretary.
After updating you on developments over the past year, our strategic initiatives and our Company in general, I will then hand over to our Managing Director and Chief Executive Officer, Peter Corish, to give a more detailed overview of the operational
and financial performance of the Company over the past 12 months.

1

It has been pleasing that the Company's winter and summer crop production have been close to forecast and above FY11 production. This result confirms the Company's capacity to produce high yielding crops, which is attributable to the quality of its land and water assets and the management team's capabilities, notwithstanding that the prevailing commodity prices significantly affected the Company's revenues over that period.
The dryland winter wheat crop produced nearly 20,000 tonnes at an average yield of
3 tonnes per hectare. The predominant summer crops of irrigated and dryland cotton produced approximately 100,000 bales, the largest crop produced by PrimeAg to date.
Global commodity prices, particularly cotton, reduced significantly throughout the year, due to increased supply and demand that reflected weak economic conditions in major economies. Despite strong forward sales, which were negotiated in accordance with Board policy, the overall impact of lower cotton lint and seed prices combined with higher ginning costs was approximately $11 million. Revenue for the year was $64.8 million. Operating profit from operations before tax was $10.4 million of which $4.9 million constituted interest earnings associated with the PrimeAg Agricultural Fund. After adjusting for the accounting treatment of asset valuation changes, net profit after tax was $5 million.
PrimeAg's portfolio of land and water assets has maintained their value through a period of continuing global economic uncertainty. This stable asset value is testament to the quality of our farming portfolio and water assets. Net asset backing per share at 30 June 2012 is $1.58, down from $1.95 at 30 June 2011. This is a result of the rights issue associated with the Fund which affects the year on year
comparison per share of net asset backing.

2

As part of the plan to fine tune the portfolio, a number of properties have been offered for sale during the year. The Inner Downs and North Star aggregations have been sold for a combined value of $36.7million, very close to both their balance sheet values and independent expert valuations.
PrimeAg's balance sheet remained very strong with no long term core debt and
$134.6 million cash at 30 June 2012, which included funds raised for the Ag Fund.
As announced on 30 August 2012 and confirmed by a Special General Meeting on the 17th October 2012, the Board has used funds raised from property sales to return to shareholders approximately $40million or 15 cents per ordinary share of capital by way of capital return. As a result, no dividend has been declared for the FY12 year. After the return of capital the net asset backing per share is $1.43.
The successful establishment of the unlisted PrimeAg Agricultural Fund in FY12 was a positive step forward. PrimeAg has evaluated a number of acquisition opportunities and engaged in a number of negotiations for assets. Although none of PAF's offers were accepted management will, subject to the outcome of the privatisation process, take a disciplined and patient approach to building the appropriate portfolio of land and water assets.
Subject to there being no natural disasters or material change in input prices, at this point in the season, given the levels of irrigation water available and strong moisture profiles at all locations, the production outlook is positive.
The global interest in agricultural land and water assets remains strong and PrimeAg's portfolio provides direct exposure to increasing global demand for soft commodities. A significant part of PrimeAg's strategy has been to best position the company to benefit from this increasing global demand. Given these fundamentals and the listed market's consistent undervaluation of PrimeAg, the Board has announced a plan to unlock shareholder value and return capital to shareholders
through a privatisation process, as announced on 30th August, 2012.

3

Due to the inadequate recognition by the listed market of the value of the company assets, and also due to operating returns well below expectations, the Board resolved, with the support of major shareholders, to determine if there is an acceptable proposal or combination of proposals to unlock value for all shareholders at a price and on terms that are in the best interests of all shareholders.
UBS has been appointed as adviser to PrimeAg for the privatisation process. Considerable preparation for the sale process has been conducted with the collation of a comprehensive Due Diligence Data Room, preparation of the Information Memorandum, distribution of an Information Flyer, and meetings with prospective parties both from Australia and overseas.
We anticipate final proposals by December with settlement, subject to receipt of an acceptable proposal, by the end of the 1st Quarter, calendar year 2013.
Whilst there is no certainty of an acceptable sale being consummated or execution within the proposed timetable, the Board has been pleased with the strong level of interest received to date. The Directors will keep shareholders fully informed of material developments as they occur.
Should the sale process not result in the valuation expectations of the Board being met, PrimeAg will commence an orderly divestment of properties over a longer period.
I would like to make a special mention of my fellow Directors and PrimeAg's dedicated employees for all their hard work over the past year. Their commitment and enthusiasm is appreciated.
Lastly I would like to thank our shareholders for their continued support as we execute the Company's strategy.
I would now like to ask Peter Corish to address the meeting.

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