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General Update

April and May were productive months for the team at Elaine Securities PLC (“Elaine”).

Current Investments

Thanks to successful redemptions Elaine now has 5 outstanding loans from the 7 listed in the previous announcement.

1) The participation in the loan transaction, previously mentioned in the February and March announcement, is now proceeding for the completion of the development of a large villa in Spain. The first development drawdown is expected to occur in June following the provision of the valuation certificate from the lenders representative on the status of the works.

2) Elaine is assisting in negotiating the various options for the sale of the private aircraft to redeem the loan amount. Under consideration is the option of selling the aircraft in fractions which could increase the return to the company. We are also looking at offering a lease so that the aircraft could be paid for in instalments. We will update you on the progress in the next announcement.

3) We can confirm that syndicated loan facility for the purchase of an Aston Martin DB4 GT is proceeding. The loan is to be repaid prior to commencement of the build. It is expected that the borrower will request the build to commence in late 2017.

4) The residential development in Leeds is progressing well with costs lower than forecast.

5.) We understand that the borrower for the loan secured against the 15th Century Grade II listed building in Surrey is intending to repay their loan early. Updates on the expected redemption will follow.

Potential Investments

Below are some of the opportunities that the team are exploring:

1.) We have been offered the opportunity to participate in secured lending as part of a joint venture with the purpose of paying the VAT on commercial property acquisitions. The loan would be repaid directly from the VAT reclaim as well as additional security on title behind the primary lender.

2.) Elaine has been offered an opportunity in to participate in funding the acquisition and development of a block of 11 commercial units and 65 apartments in Valencia, Spain. This is an almost completed development that is being offered from the bank at a significant reduction on market price.

3.) There is an opportunity for Elaine to lend or participate in a loan to acquire student accommodation in Leicester. This would a first charge bridge loan.

Elaine is currently sitting on a cash sum of £200,000 to participate in these investments.

We will update you again in the near future regarding these loans.

Yours sincerely,

Elaine Securities Plc