Kangaroo Island Plantation Timbers : Notice of General Meeting, Proxy Form

Kangaroo Island Plantation Timbers Limited

Notice of General Meeting

ABN 19 091 247 166

Date: Friday 24th February 2017

Commencing: 10:00 am (CDT)

Location: Grant Thornton's offices Level 3, 170 Frome Street, Adelaide, South Australia 5000.

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Contents

PART A: LETTER TO SHAREHOLDERS PART B: NOTICE OF GENERAL MEETING PART C: EXPLANATORY MEMORANDUM PROXY FORM Part A: Letter to Shareholders

23rd January 2017 Dear Shareholder

The Board of Kangaroo Island Plantation Timbers Limited and its subsidiary undertakings (the "Company") has pleasure in inviting you to the Company's General Meeting ("GM") to be held on Friday 24th February 2017 at 10:00am (CDT). The Company's General Meeting is to be held at Grant Thornton's office at Level 3, 170 Frome Street, Adelaide, South Australia 5000.

The Board is aware that many Shareholders are located in other States and overseas. To this end, if requested, the GM will be audio-cast to enable interstate and overseas Shareholders to attend audio cast virtually.

Acquisition

At this GM, the Board has pleasure in seeking the approval of the acquisition of the entire Forestry Investment Trust (FIT) estate managed by New Forests Asset Management Pty Limited on Kangaroo Island, South Australia (Acquisition). The Company has now entered in to the transaction documents relating to the Acquisition and paid the initial deposit and is now working towards completion of the Acquisition. Kangaroo Island Plantation Timbers Limited believes this Acquisition is an exciting opportunity to quadruple the area of its plantations and to progress the development of a route to market for its valuable timber resources.

Share Split

The Board is seeking a share split on the basis of 10 Shares for every 1 Share held. The Share Spilt is intended to benefit all Shareholders by creating improved liquidity and turnover in the trading of Shares and to increase affordability of the Shares to investors.

Appointment of Non-Executive Director

The Board has appointed Mr Greg Boulton AM to the Board. Mr Boulton offers new skills and experience that will assist the board fulfilling its goals. Shareholders now have the opportunity to vote on Mr Boulton's appointment to the Board.

Performance Rights 24th February 2017 Maximum Shares 89,999

The Board is also pleased to seek the approval of Performance Rights Plan (Plan) rights dated 24th February 2017 that are aimed at aligning the Boards' interests more closely with those of the Shareholders. The Board is seeking approval of performance rights issues under the Plan.

The aim of these performance rights is to incentivize the Board to achieve volume-weighted average (VWAP) Share prices of $37.00, $42.50 and $50.00 based on 100,000 traded Shares. Share prices and volumes would be adjusted accordingly if the Share Split is approved at the meeting.

Attached is the Kangaroo Island Plantation Timbers Limited Notice of General Meeting and accompanying Explanatory Memorandum.

Full details of the above Resolutions are provided in the accompanying Explanatory Memorandum.

Please consider carefully the contents of this Notice of Meeting, including, without limitation, the Explanatory Memorandum. If you are in any doubt as to any matter, please consult your legal, financial or other professional adviser.

Yours faithfully

Mr Paul McKenzie Chairman

Kangaroo Island Plantation Timbers Limited

Part B: Notice of General Meeting

Notice is hereby given that the General Meeting ("GM") of the Shareholders of Kangaroo Island Plantation Timbers Limited (the "Company") will be held at Grant Thornton's office Level 3, 170 Frome Street, Adelaide, South Australia 5000 on Friday, 24th February 2017 at 10:00am (CDT) (Adelaide local time).

If you are unable to attend the meeting, we encourage you to complete and return the enclosed Proxy Form. The completed Proxy Form must be received at the Company's share registry or the registered office of the Company, before 10:00am (CDT) Wednesday, 22nd February 2017. The details of the Company's share registry and registered office are set out in the attached Proxy Form.

The enclosed Explanatory Memorandum accompanies and forms part of this Notice of Meeting. Shareholders are advised to read these documents in full as important background information is included.

Where permitted by the Corporations Act, the Chairman will cast undirected proxy votes held by him in favour of the Resolutions.

BUSINESS

1. Chairman's address on significant events since the last general meeting.

2. Proposed Ordinary Resolutions:

Resolution 1 Approval of the Forestry Investment Trust estate acquisition

Resolution 2 Share Split

Resolution 3 Election of Gregory Boulton as a Non-Executive Director

Resolution 4 Approval of Non-Executive Directors' Share Plan

Resolution 5-6 Approval of issue of Shares to Directors under the Performance Rights Plan for performance rights dated 24th February 2017