BACKGROUND INFORMATION ON THIS PROPERTY: This pretty property has been under single family ownership for the past 22 years and is now held in undivided interest by children of the original owner who made extensive improvements to the property. It has always been used for all phases of livestock operations, hunting, fishing and recreation. The grazing rights only are currently leased to a neighboring rancher with a 90 day lease termination clause option in the event of a sale of the property.

METHOD OF SALE: The Owners (Sellers) have given Thornton Ranch Sales exclusive authorization to sell this fine property. They will convey the property by a General Warranty Deed, provide a standard Owner’s Policy of Title Insurance and a current survey. No livestock or personal property will be included in the sale. However, some of all of said livestock and personal property may be for sale at a price to be negotiated.

DESCRIPTION: This productive one-of-a-kind live water ranch possesses many characteristics sought by most buyers/investors. Specifically, the location is superb. Even though located only one mile from the small town of Smiley, population 453 souls, it is located in a very private area with long frontage on an excellent all weather county road. The headquarters is located on a high point overlooking Elm Creek with its pretty bottomland studded with large pecan trees. There are no road easements through the ranch and no public roads on any of the boundary lines except for the county road on the south boundary line. Thus, peace, quiet and privacy are assured. Elm Creek flows through the ranch and/or is on the boundary line for a total linear distance of about 8,000 feet. This strong creek is feed by artesian water wells located upstream from the property. Additionally Mound Creek, a seasonal creek, runs through the ranch for a linear distance of 4,000 feet. There are two high volume irrigation water wells, only one of which is now equipped. These wells were originally drilled as oil wells and both have been converted to water wells. They produce what appears to be an unlimited water supply in large volume. The one equipped well is used for the ranch headquarters water supply. This well is also well suited for irrigating the Coastal Bermuda grass pastures via a side roller irrigation system. Deep, fertile sandy loam soil that is highly suitable for growing crops covers about 250 acres of the property. Crops successfully grown in the past include alfalfa, wheat, oats and hay. There is a wonderful large garden enclosed by a high deer proof fence. Extensive improvements, most of which were designed to support a livestock operation, include many barns, sheds, offices, living quarters, a feed mill, pens with scales and underground pipe for irrigation water distribution. There is excellent tree cover on about 1/3 of the ranch including pecan, live oak, elm, hackberry and miscellaneous heavy brush throughout the creek area which is an incubator haven for the deer herd. There is an outstanding population of wildlife including deer, turkey, hogs, dove, birds and small wildlife. Also the Seller reports there are some “keeper” catfish in the many deep water holes in Elm Creek. If your desire is to fly in, there is a natural site for a 5,000 foot landing strip correctly oriented on about a 170-350 degree heading that is ideally suited for prevailing winds in this area. And last but not least there are outstanding sites for two 20-25 acre manmade lakes that could be filled by natural run-off, Elm Creek and/or the two flowing artesian wells that are waiting to be fully utilized. See the Topo Map attached hereto for potential airstrip and lake locations. Additionally, the mineral situation on this property is very interesting as described in the MINERALS paragraph below. This property might well fill your needs if you are searching for quality pristine property with a live stream, great soil, unlimited mineral and development potential, easy access, privacy, views, good neighbors, wildlife, excellent hunting and fishing and all this within an easy drive from Houston.

HUNTING, FISHING, RECREATION, RIDING & ROPEING, BIRDING, GARDENING, and WILDLIFE OBSERVATION: These are some of the activities available on this interesting play-toy ranch. For the hunter there is a prolific and strong population of whitetail deer, turkey, birds and feral hogs. The fishing for perch and catfish in Elm Creek is reported to be outstanding. The virtually rock-free terrain is ideally suited for riding horses. Bird watching is superb year round and you can observe dozens of humming birds simultaneously during the summer months if you keep 4 or 5 feeders filled with hummingbird food. Additionally, there are doves, robins, blue birds, red birds, and miscellaneous seasonal birds of every description. If you are a gardener you will be highly impressed by the fertile sandy loam soil. Or, if you prefer a more sedate form of recreation, you can sit in the back yard with your binoculars and be entertained by scoping for deer, turkey, birds and wildlife. The stargazing at night is unsurpassed. The night sky is so clear that you can see the milky-way and other constellations like you have never seen them before. And if you are a golfer outstanding courses a found at the nearby towns of Gonzales, Seguin, New Braunfels and San Antonio.

MINERALS: It is believed the minerals are intact and that the Sellers own 100% of the minerals and executive leasing rights. All executive rights owned by the Sellers will be conveyed to the buyer and Seller shall retain a 50% participating royalty interest in all minerals owned. The minerals are not now under lease, however there is mineral leasing activity in the area. There is mineral production in the area but no production on this property at this time.

POSSESSION: Possession subject to no leases of any kind shall be given on the day of closing and funding except that the grazing lessee shall have 90 days following the date a binding contract of sale is executed and placed in escrow to vacate the lease and remove all his livestock from the property.

IMPROVEMENTS: Combination office and living quarters, small house for employees, portable building converted to living quarters, multiple bay garage and shop, one large hay barn, one big barn with built-in feed mill, 4 elevated silos equipped with conveyors to support the feed mill, elevated syrup storage silo, large pen complex with cattle scales, two artesian water wells only one of which is equipped, underground telephone lines, electricity, good internal road system.

TAXES: Based on current agricultural use the total ad valorum taxes for calendar year 2008 were $3,041.67. The property shall be conveyed to the buyer with said agricultural use and related tax rate in effect.

PRICE: $1,890,700.00* ($3,700.00 per acre)

* PRICE: The total price shall be adjusted based on the actual number of surveyed acres that will be conveyed by a General Warranty Deed and insured by an Owner's Policy of Title Insurance multiplied by the price per acre agreed upon by Seller and Buyer. Said price shall not include any livestock or personal property.

TERMS: All cash at closing or any other terms acceptable to Sellers.

MISCELLANEOUS & AIRPORT INFORMATION: Attractions found in Gonzales include great restaurants, grocery stores, feed stores, hardware stores, bakeries, campgrounds and lots of friendly people. Roger M. Dreyer Memorial Airport, located 2 miles N-W of Gonzales, has a 3,200 foot asphalt runway. New Braunfels Municipal Airport located 4 miles east of New Braunfels has a 5,364 foot lighted asphalt runway and fuel & services are available. Another option for the aviator would be to build your own 5,000 foot runway on Elm Creek Ranch at the location shown on the attached topographic map.