ĐURO ĐAKOVIĆ Grupa d.d.

Share Issue/Capital Change • May 17, 2017

Dr. Mile Budaka 1, 35000 Slavonski Brod, Croatia Tel: +385 35 446 256: +385 35 447 139 Fax: +385 35 444 108 e-mail: uprava@duro-dakovic.com Web: www.duro-dakovic.com

ZAGREB STOCK EXCHANGE Ivana Lucića 2a 10 000 Zagreb

CROATIAN FINANCIAL SERVICES SUPERVISORY AGENCY Miramarska 24b 10 000 Zagreb

No: 71/2017 Slavonski Brod, 15th May 2017

Subject: Notification on the suspension of the nominal capital increase procedure and cancellation of the convened General Assembly of the Company ĐURO ĐAKOVIĆ GROUP Plc.

Pursuant to the provision of Article 39 of the Statute of the company Đuro Đaković Group Plc. with the seat in Slavonski Brod, Dr. Mile Budaka 1, registered in the Court register of the Commercial court in Osijek, permanent attendance in Slavonski Brod under the register number 050002378, PIN: 58828286397 (hereinafter: "Company"), in conjunction with Article 459 of the Capital Market Act (Official Gazette 88/08, 146/08, 79/09, 54/13, 159/13, 18/15, 110/15, 123/16), related to the initiated nominal capital increase procedure, according to the Decision of the General Assembly of the Company on nominal capital increase by public offering from 21^th March 2017, the Company's Management Board informs the shareholders and the public that the nominal capital increase procedure concerned is suspended.

Based on the state of subscriptions and payments for the shares that were subject of the issue, pursuant to the above mentioned Decision of the General Assembly of the Company, made by 12^th May 2017 till 4 p.m., it has been determined that less than 5.000.000 shares have been subscribed and paid for, resulting in non achievement of the Success Threshold of the New Share Issue, which was determined by the Decision concerned.

In accordance with the above mentioned Decision, within 8 (eight) business days after the expiry of the deadline for subscription and payment of New Shares, the Company will refund the money to the Investors. The Company will neither bear the costs of payment transactions, nor pay any interests to the Investors.

Regarding the above mentioned facts, General Assembly of the Company, convened for 19th May 2017 at 1 p.m. at the Company's seat in Slavonski Brod, Dr. Mile Budaka 1, the agenda of which was announced on the Zagreb Stock Exchange Ltd. web page, on the web page of the Company, on Court Register web page and in the Official Gazette No. 20/2017 and 31/17, has been cancelled.

» DURO DAKOVIĆ« GRUPA d.d. Slav. Brod, Dr. M. Budaka 1

Tomislav Mazal, President of the Management Board