Launceston, Tasmania, Australia, 13 July 2011 -- Gunns Limited confirms it has entered into an agreement for the sale of the Triabunna woodchip facility to Triabunna Investments Pty Ltd, with the transaction to be completed on 15 July 2011. The terms of the sale agreement provide for the facility to be leased to an industry operator as a woodchip export business, to operate on a basis consistent with the Tasmanian Statement of Forest Principles.

Over the past six months, Gunns sought interest in acquisition of the Triabunna facility from customers and local and international operators. A contract with a local operator was executed but, despite the best endeavours of both parties, could not be completed when scheduled on 29 June 2011.

Gunns believes that the current sale agreement, with its requirement that the facility be made available for operation as an export facility subject to the conditions of the Statement of Forest Principles, provides an opportunity for certainty for industry consistent with the need to achieve the structural change necessary for long-term viability.