Directors are pleased to report a profit of $11.5 million after...

Directors are pleased to report a profit of $11.5 million after tax for the year ended 31 December 2008,
representing a $20.3 million improvement on the previous year loss of $8.8 million.
Despite the inability to plant cotton or cereal crops, Tandou has had a successful year retiring all bank
debt while retaining all its regulated water entitlements.
The improved earnings result follows the successful sale of its supplementary water for $34 million,
also helped by continuing revenue from temporary trading of available water allocations. Directors note
that the Company’s Net Asset Backing at valuation has increased to 71 cents per share, being a 22%
improvement on the previous year.
Water Entitlements
Following the sale of the supplementary licence, Tandou’s remaining water assets total 31,617
megalitres and have recently been independently valued at more than $30 million, representing 34 cents
per share.
Directors also note that as a result of the “intangible” nature of these water entitlements for accounting
and reporting purposes, the Company is again unable to fully recognise the significant and increasing
market value of these assets in the 2008 accounts. Book value of these assets is currently reported as
$4.5 million approximately $26 million below independent valuation on a stand alone basis.