Listed agribusiness and water investment company Tandou Limited (TAN:ASX) today reported that it has exchanged an unconditional contract for the sale of 16,064 megalitres of water entitlements for a total value of more than $17.3 million. Settlement of this ransaction is expected to occur early in the New Year.

Tandou CEO Guy Kingwill said "this excellent result for the Company demonstrates Tandou's flexible approach to water investment. We look at all value opportunities and the Company has commenced replacement of this water."

In a separate transaction the Company advises that it has entered into a Heads of Agreement for the purchase of the irrigated cotton and grain property, "East Farm", for $5.8 million. This Murrumbidgee River property comprises approximately 6,000 hectares and is located near Hay, NSW. Contracts are expected to be finalised over the coming weeks with settlement during January 2013.

In a separate transaction the Company advises that it has entered into a Heads of Agreement for thepurchase of the irrigated cotton and grain property, "East Farm", for $5.8 million. This MurrumbidgeeRiver property comprises approximately 6,000 hectares and is located near Hay, NSW. Contracts areexpected to be finalised over the coming weeks with settlement during January 2013.

Mr Kingwill said "The East Farm acquisition provides Tandou with the opportunity to expand our irrigated cotton and grain production operations in the Murrumbidgee area. Combined with the nearby Pevensey irrigation leasehold development, the Company now has a substantial cropping operation based on the Murrumbidgee. The two properties increase our annual summer cropping capacity by almost 40% to approximately 9,000 hectares and also provide greater geographic diversity."

This acquisition will be funded within existing facilities and assisted by current operating profits.

Further information relating to the Company's financial and operating results will be included in the Half Year Report for the six months ending 31 December 2012.

Enquiries:
Guy Kingwill
CEO/MANAGING DIRECTOR
PH. 03 5018 6500
TANDOU LIMITED
ABN 81 001 014 562

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