CVC LIMITED — Capital/Financing Update 2014

Apr 3, 2014

ASX

Announcement

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**LANTERN

HOTEL GROUP (ASX: LTN)**

4 April 2014

Buy-­‐back

Offer Update

Further to our recent announcements in respect of the Buy-­‐back offer and the action commenced in the Supreme Court of NSW, Lantern advise that it has agreed a commercial settlement with Millinium Asset Services Pty Ltd as trustee for the Borg Fund (Millinium), Totem Holdings Pty Ltd (Totem) and CVC Limited (CVC).

Lantern will pay Millinium $1.4m to facilitate settlement with Totem and CVC.

As part of the settlement terms of the commercial transaction have also varied.

Summary of key changes to our previously announced transaction–

• Fixed price of 7.5c per share;

• Time frame to complete extended to 31/7/2016;

• Interest coupon of 8% to accrue from 1/8/2014 (payable quarterly in arrears).

Settlement provides enhanced certainty to shareholders enabling the company to implement the proposed transaction and is considered a good outcome.

The company will proceed to formalise the structure of the transaction (which may be implemented in a manner other than a buy-­‐back) and hold an extraordinary general meeting (EGM) for security holders to vote on the proposed transaction.

Further details will be released once a date has been set for the EGM.

Russell Naylor Executive Director Lantern Hotel Group GPO Box 5337 Sydney NSW 2001 +61 2 8223 3603

Leanne Ralph Company Secretary Lantern Hotel Group GPO Box 5337 Sydney NSW 2001 +61 2 8223 3603

Lantern Hotel Group is a stapled group comprising Lantern Hotel Group Limited (ACN 145 967 899) and Lantern Real Estate Trust (ARSN 108 982 627).