Claridge Public LTD — Capital/Financing Update 2015

Mar 19, 2015

Claridge Public Limited

Office of the Secretary P.O.BOX 50012, 3600 Limassol, Cyprus Tel.:00357 25871600, Fax: 00357 25362001 e-mail: pmc@pkdlaw.com

ANNOUNCEMENT LOAN AGREEMENT FOR €5.800.000 FROM AMATHUS PUBLIC LIMITED

Claridge Public Limited announces the signing of a Loan Agreement on 17/03/2015 with Amathus Public Limited for an amount up to €5.800.000. It is reminded that Amathus Public Limited holds a percentage of 40,53% of the issued share capital of Claridge Public Limited.

The purpose of this loan is to cover part of the renovation cost of the Company's hotel in Paphos and its conversion into an Olympic Lagoon Hotel. An amount of approximately $\epsilon$ 6.000.000 has already being spent, received as advance payment by tour operators and it is estimated that an additional amount of €7.500.000 will be needed to cover the whole of the renovations.

The loan amount is up to $\epsilon$ 5.800.000 and shall be draw down depending on the progress of the renovations, following the issue of relevant certificates by the supervising architect of the renovations at the hotel in Paphos. The rate of interest for the loan has been agreed to be equal with the deposit rate of interest enjoyed by Amathus Public Limited for its deposits in Cyprus plus 0,50% to cover various administration expenses.

The repayment of the above loan will be made either by crediting Amathus Public Limited for its participation in K.A. Olympic Lagoon Resort Limited, when the transfer of the hotel in Paphos to K.A. Olympic Lagoon Resort Limited will be affected (relevant announcement for the sale of the hotel in Paphos to K.A. Olympic Lagoon Resort Limited were made in January and February 2015) and in case, for any reason whatsoever, the said transfer of the hotel in Paphos to K.A. Olympic Lagoon Resort Limited will not take place, by crediting Amathus Public Limited for the issue to its name of 48.333.334 new shares of a nominal value 0,12 each as fully paid up. This issue of shares shall take place within the framework of the rights issue to the shareholders of the Company, in accordance with the decision of the board of directors of the Company in August 2014, which will be implemented in the event of cancellation of the sale of the hotel in Paphos to K.A. Olympic Lagoon Resort Limited.

Due to the agreed mode of the payment of the above loan, no collaterals were given by the Company to Amathus Public Limited. The board of directors of

Claridge Public Limited

Office of the Secretary P.O.BOX 50012, 3600 Limassol, Cyprus Tel.:00357 25871600, Fax: 00357 25362001 e-mail: pmc@pkdlaw.com

both companies consider the terms of this loan to be within the framework of the terms of normal commercial practice (at arm's length).

The Company, by receiving the said loan is facilitated for the completion of the renovations to the hotel in Paphos, the financing of which was unable to secure otherwise, on such terms as those offered by Amathus Public Limited.

Limassol, 19 March 2015