grower investor, page-11

Email from Korda this evening:

4 June 2009


Dear Grower

We are writing to provide you with a brief update on the
administration of the companies in the Timbercorp Group
(All Administrators Appointed).

After conducting an assessment of the olive and almond managed investment schemes ("the Schemes"), it is apparent that the Schemes require a significant cash contribution of more than $300 million to meet operating requirements in relation to management and harvesting of the 2010 crop.

Timbercorp Securities Limited (Administrators Appointed) ("TSL") is hopelessly insolvent and is unable to contribute money for this purpose or to operate the Schemes in the long term. Previously, TSL and other companies in the Timbercorp Group contributed funding to the Schemes to meet those operating costs.

Having regard to the current financial position of TSL, the
insolvency of each of the companies in the Timbercorp Group and
the cash requirements for 2010 in respect of the Schemes, we do
not believe it is in the best interests of Grower Investors for TSL
to send invoices for the estimated operational and capital
expenditure.

As such, we will apply to the Supreme Court to seek directions under
the Corporations Act as to whether the Administrators of TSL should
apply to the Court to wind up the Schemes. We take this step with
some reluctance but we believe the Court is the fairest forum in which
interested parties, including Grower Investors, can put their views.

We will consider all bona fide alternative proposals to replace
TSL as responsible entity for any one or more of the Schemes, if
such proposals are in the best interests of Grower Investors. We
will also make all necessary information available to bona fide
parties who wish to make such proposals.

The findings of the Court will help determine the future direction
of the olive and almond Schemes. The timing of the application to
Court is important as lease and management contracts require payments
to be made at or after the end of June. TSL has no capacity to
make such payments.

As part of this process, Grower Investors will be able to access
information provided to the Court (and documents filed with the
Court) via www.timbercorp.com.au, www.kordamentha.com and www.abl.com.au,
and we will continue to provide you with updates on the progress
of the administration, including the application to the Court.

Unfortunately, after the meetings of the Timbercorp Group
committees of creditors held yesterday, the media was made aware
that we were considering making an application to the Supreme Court
of Victoria in relation to the almond and olive Schemes. We would
have preferred to have informed Grower Investors directly today
(rather than have you read about it first in the papers).

We are continuing to analyse forestry operations and other
horticulture operations and expect to be in a position to provide
Grower Investors with more information on these projects in the
near future.

Yours sincerely



MARK KORDA
Administrator