Kangaroo Island Plantation Timbers : Updated General Meeting Notice

24 January 2017

The Manager

Companies Announcements Office Australian Securities Exchange

Dear Sir/Madam

Kangaroo Island Plantation Timbers Ltd - Updated General Meeting Notice

Kangaroo Island Plantation Timbers Limited (Company or KPT) yesterday announced a General Meeting that is being held on 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 General Meeting Notice has been re-released due to an error in the Chairman's letter to Shareholders. The letter to Shareholders has been updated for a typographical error, the Performance Rights (24 February 2017) VWAP price was incorrectly shown as $37.00 rather than $35.00 as stated in Resolution 5 and 6.

If you have any questions in relation to the General Meeting, please contact KPT's Company Secretary, Ms Victoria Allinson, on 08 8227 2482. For other questions, you should consult your stockbroker, accountant or other professional adviser.

Yours faithfully

Victoria Allinson Company Secretary

79 Angas Street, Adelaide SA 5000

T [phone] F [phone]

kpt.com.au ACN 091 247 166

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.

THIS IS AN IMPORTANT DOCUMENT

If you are in doubt as to what to do with this document please contact your

legal, financial or other professional advisor

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 $35.00, $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