Ilirija d.d. — Capital/Financing Update 2016

Oct 31, 2016

lipiin d.d. BIOGRAD NA MORU Tel: Centrala ++385 23 383 165; Fax: ++385 23 384 564; Prodaja: ++385 23 383 556; sales@ilirijabiograd.com; www.ilirijabiograd.com

In Biograd na Moru, dated 31st October 2016 PROT.NO.: 362/2016-2

The Croatian Financial Services Supervisory Agency - HANFA MIRAMARSKA 24B 10 000 ZAGREB

Zagrebačka burza d.d. /Zagreb Stock Exchange plc./ Ivana Lučića 2a 10 000 Zagreb

HINA Marulićev trg 16 10 000 Zagreb

COMPANY WEBSITE

ISIN: HRILRARA 0009 SECURITY: ILRA-R-A QUOTATION: Službeno tržište Zagrebačke burze d.d. /Official Market of the Market Stock Exchange plc.)

Subject: Final Price for the New Shares of the company Ilirija d.d.; Decision by the Management Board and consent by the Supervisory Board of 31st October 2016

In accordance with the provisions of the Capital Market Act and the Zagreb Stock Exchange Rules, we hereby notify you that the Supervisory Board of the company Ilirija d.d. Biograd na Moru (hereinafter: the Company) did at the meeting held on 31st October 2016 give a consent to the final price for the new shares of the Company determined by the Decision of the Company's Management Board of 31st October 2016.

The Decision made by the Management Board on the price for which the New Shares shall be issued of 31st October 2016 and the consent given by the Supervisory Board to that Decision are attached to this Notice.

ILIRIJA d.d. Management Board: Goran Ražnjević ILIRLJA dioničko drug za ugostiteljstvo i turi Biograd na Morp

ILIRIJA d.d. za ugostiteljstvo i turizam, Tina Ujevića 7, Biograd n/M, Trgovački sud u Zadru, MBS. 060032302, Matični broj: 3311953., OIB: 05951496767; račun: ERSTE & STEIERMARKISCHE BANK d.d. - RIJEKA IBAN: HR5824020061100097324. Temeljni kapital: 159.085.880,00 kn, uplaćen u cjelosti. Broj izdanih dionica: 274.286, nominalni iznos dionice: 580,00 kn. Uprava: G. Ražnjević, Predsjednik Nadzornog odbora: G.Medić

In Biograd na Moru, dated 31st October 2016 SUPERVISORY BOARD

According to the Decision by the General Shareholders' Assembly on an increase in share capital by contributions in cash and issue of new shares and changes and amendments to the Articles of Association of 24th October 2016 (hereinafter referred to as: Decision on an increase in share capital), the Supervisory Board of the company ILIRIJA, a joint stock company for hospitality and tourism with registered seat in Biograd na Moru, Tina Ujevića 7, entered in the court registry of the Commercial Court in Zadar under the company reg. no. (MBS):060032302, Tax No. OIB: 05951496767(hereinafter referred to as "Company"), did for the purpose of increasing the share capital of the Company by public offering of the shares according to the Decision on an increase in share capital, at the meeting held on 31st October 2016 give the following:

CONSENT

• 1.) Consent is given to the Company's Management Board to take a decision on a final price at which the New Shares shall be issued, in the amount of HRK 1.255,00, with the same contents as in the Draft Decision PROT. NO:361/2016 that is filed in Attachment 1 to this Decision and constitutes an integral part thereof.
• 2.) This Decision comes into force immediately on the date of taking it.

SUPERVISORY BOARD Goran Medie President of the Supervisory Board

Attachment 1: Draft Decision made by the Management Board on final price at which the New Shares shall be issued

ILIRIJA d.d. za ugostiteljstvo i turizam, Tina Ujevića 7, Biograd n/M, Trgovački sud u Zadru, MBS: 060032302, Matični broj: 3311953., OIB: 05951496767; račun: ERSTE & STEIERMARKISCHE BANK d.d. - RIJEKA IBAN: HRS82402006110 Temeljni kapital: 159.085.880,00 kn, uplaćen u cjelosti. Broj izdanih dionica: 274.286, nominalni iznos dionice: 580,00 kn. Uprava: G. Ražnjević, Predsjednik Nadzornog odbora: G.Medić

In Biograd na Moru, dated 31^st October 2016 Management Board PROT.NO:361/2016

According to the Decision by the General Shareholders' Assembly on an increase in share capital by contributions in cash and issue of new shares and changes and amendments to the Articles of Association of 24^th October 2016, the Management Board of the company ILIRIJA, a joint stock company for hospitality and tourism with registered seat in Biograd na Moru, Tina Ujevića 7, entered in the court registry of the Commercial Court in Zadar under the company reg. no. (MBS): 060032302, Tax no. OIB: 05951496767 (hereinafter referred to as "Company"), did with prior consent by the Company's Supervisory Board, on 31^st October 2016 pass the

Decision $\alpha$ final amount at which the New Shares are issued ("Decision")

Article 1

• 1. The final amount at which the Company's New Shares shall be issued, is set in the amount of HRK 1.255,00 for one New Share ("Final Price").
• 1. The Final Price for the New Shares of the Company is a uniform price for all shares that are subject to public offering.
• 1. This Decision comes into force on the date of taking it.
• $4.$

Explanatory Notes

According to the Public Call to qualified investors of $25^th$ October 2016, and according to the received offers from the Subscription Forms by qualified investors, within the Price Range, the Company's Management Board has, with prior consent by the Supervisory Board of the Company, determined that the Final Price at which the New Shares shall be issued, as an optimum price, at which the recapitalization of the Company will be possible, shall be HRK 1.255,00.

The Final Price for the New Shares of the Company is a uniform price for all New Shares that are subject to public offering.

This Decision shall be posted by the Company at the website of The Zagreb Stock Exchange plc. (www.zse.hr) and Company (www.ilirijabiograd.com), while the notice thereof shall be submitted to HINA and HANFA.

ILIRIJA D.D. MANAGEMENT BOARD: Goran Ražnjević JA dioničko društvo a ugostiteljstvo i turizam Biograd na Moru ILIRIJA d.d. za ugostiteljstvo i turizam, Tina Ujevića 7, Biograd n/M, Trgovački sud u Zadní, MP/ (MO)
OIB: 05951496767; račun: ERSTE & STEIERMARKISCHE BANK d.d. - RIJEKA IRAN: HRS 02, Matični broj: 3311953., 24020061100097324. Temelini kapital: 159.085.880.00 kn, uplaćen u cjelosti. Broj izdanih dionica: 2 ni iznos dionice: 580,00 kn 4.286. Uprava: G. Ražnjević, Predsjednik Nadzornog bora: G.1