Ilirija d.d. — Share Issue/Capital Change 2016

Nov 4, 2016

In Biograd na Moru, on 04th November 2016 Broj:373/2016-1

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

Croatian News Agency HINA Marulićev trg 16 10 000 Zagreb

COMPANY WEBSITE

ILIRIJA d.d. Management Board:

LikLIA dioničko društv za ugostiteljstvo i turizam

Goran Ražnjević

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

Subject: Successful issue of the New Shares and adoption of the full text of the Articles of Association; Decision by the Management Board and consent by the Supervisory Board of 04th November 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 referred to as: Company) did at the meeting held on 04^th November 2016. gave its consent to the Decision by the Management Board on successful issue of the New Shares as of 04th November 2016.

The Supervisory Board has also taken the Decision on harmonizing the Articles of Association of the Company and adopted the full text of the Articles of Association according to the authority arising from the Decision by the General Shareholders' Assembly of the Company on changes and amendments to the Articles of Association and Decision on an increase in share capital and issue of new shares and changes and amendments to the Articles of Association of 24th October 2016.

The Decision on successful issue of the New Shares as of 04th November 2016 and the consent by the Supervisory Board to this Decision and the Decision by the Supervisory Board on harmonizing the Articles of Association are attached to this Notice.

3311953 Biograd na Moru ILIRIJA d.d. za ugostiteljstvo i turizam, Tina Ujevića 7, Biograd n/M, Trgovački sud u Zadru, MBS: 0600 2302, Matilini droji 3:
OIB: 05951496767; račun: ERSTE & STEIERMARKISCHE BANK d.d. - RIJEKA IBAN: HR382402006 10009732 Temeljni kapital: 159.085.880,00 kn, uplaćen u cjelosti. Broj izdanih dionica: 274.286, nominalni izno 580,00 kn. dion Uprava: G. Ražnjević, Predsjednik Nadzornog odbora: G. Medić

In Biograd na Moru, 04th November 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, 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 at its meeting held on 04th November 2016 give the following

CONSENT

to the

Decision by the Management Board on successful issue of the New Shares

1.) The consent is given to the Management Board to make a Decision on the successful issue of the New Shares with the same contents as in the Draft Decision No. 369/2016 as of 04th November that is enclosed to the Attachment 1 to this Decision and constitutes an integral part thereof.

2.) This Decision comes into force immediately on the date of taking it:

UPERVISORY BOARD

Góran Medić, President of the Supervisory Board

Attachment 1: Decision by the Management Board on successful issue of the New Shares

11.1RIJA d d za upostiteljstvo 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. Ražniević, Predsjednik Nadzornog odbora: G.Medić

In Biograd na Moru, 04th November 2016 Management Board Broj:369/2016

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 24th 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 Number OIB: 05951496767 (hereinafter referred to as "Company"), did on 04th November 2016 with prior consent by the Supervisory Board take the

Decision $\Omega$ successful issue of the New Shares $($ "Decision")

Article 1

• 1. It has been determined that following the Decision passed by the Management Board of 31st October 2016 on the Final Amount at which the New Shares are issued, with the consent by the Supervisory Board of 31st October 2016 and Decision by the Management Board of 3rd November 2016 on the final number of the New Shares, exact amount of the increase in share capital and call to Subscribers for payment, with the consent by the Supervisory Board of 03rd November 2016, all Subscribers of Accepted Offers that subscribed for a total of 27,400 New Shares, paid a total amount of HRK 34,387,000.00.
• 1. According to section 1 of this Decision, a total amount of HRK 34,387,000.00 was credited to the special purpose account of the Company with ERSTE & STEIERMÄRKISCHE BANK d.d. HR9524020061031262160 for the purpose of making payment for the New Shares finally on 07th November 2016.
• 1. It has been determined that the issue of New Shares has been successfully completed since the number of the New Shares subscribed and paid for within the deadlines set for subscription and payment is higher than the minimal number of 26,030 New Shares.

Article 2

This Decision comes into force immediately on the date of taking it.

MANAGEMENT BOARD IRIJA dioničko utum Foran Ražnjevićvo i turizam Biograd na Moru

ILIRIJA d.d. za ugostitelistvo 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, 04th November 2016 Supervisory Board

According to the provision of Article 301, paragraph 1 of the Companies' Act, 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") has in connection with the implementation and authority arising from the Decision by the General Shareholders' Assembly of the Company on changes and amendments to the Articles of Association and Decision on an increase in share capital and issue of new shares and changes and amendments to the Articles of Association of 24^th October 2016, at its meeting attended by the all of the members of the Supervisory Board held by telephone on 04^th November 2016, unilaterally taken the following

DECISION

ON HARMONIZING THE ARTICLES OF ASSOCIATION

• The provisions of Article 3 of the Articles of Association of the Company of 10th June 2016 are I. harmonized in a way that new lines are added that are included in the core business activities in the way as follows:
• Real estate management and maintenance of real estate;
• Real estate agency:
• Real estate operations:
• Management and maintenance of parking lots,
• Providing car parking services,
• Maintenance and cleaning of all kinds of residential and office buildings,
• Landscaping and development of green areas,
• Harmonized are the provisions of paragraph 1, Article 4 of the Articles of Association in a way that $II.$ the number and words " 159,085,880.00 (one hundred fifty-nine million eighty-five thousand and eight hundred and eighty)" are replaced by the number and words "174,977,880.00 (one hundred seventy-four million nine hundred seventy-seven thousand and eight hundred and eighty)".
• Harmonized are the provisions of paragraph 2, Article 4 of the Articles of Association of the III. Company in a way that the number and the words "274,286 (two hundred seventy-four thousand two hundred eighty-six)" are replaced by the number and words "301,686 (three hundred one thousand and six hundred eighty-six)".
• The full text of the Articles of Association is adopted and it is enclosed in Attachment 1 to this IV. Decision and constitutes an integral part thereof.
• This Decision comes into force immediately on the date of taking-it V.

Company Supervisory Board

Goran Medić, President of the Supervisory Board

Attachment 1 Full text of the Articles of Association of the Company

ILIRIJA d d za ugostiteljstvo i turizam, Tina Ujevića 7, Biograd n M, Trgovački sud u Zadru, MBS: 060032302, Matični broj: 3311953., OBS: 05951496767; račun: ERSTE & STEIERMARKISCHE BANK d.d. ~ RIJEKA IBAN: HR5824020061100 Temelini kapital. 159 085 880,00 kn, uplačen u cjelosti. Broj izdanih dionica: 274 286, nominalni iznos dionice: 580,00 kn. Uprava: G. Ražnjević, Predsjednik Nadzornog odbora: G.Medić