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February 2022 Update from Rob Jarrett

I am writing to provide you with a further update with regards to your property in Cape Verde. I am pleased to advise that Llana Beach Hotel is now fully open and it was a pleasure to begin welcoming back guests back to Cape Verde after such a long period of closure. Subject to demand we hope to reopen Melia Sol Dunas and Melia Tortuga Beach very soon and will of course write to advise you in due course.

The festive period was a challenging time for Melia Dunas and Llana Beach Hotel given the surge in Omicron cases that affected the island during December. The Resorts endured a considerable amount of staff absences which had a direct impact on the hospitality service and indeed a drop in occupancy and new bookings due to the various restrictions imposed on international travel. Thankfully cases in Cape Verde have started to reduce significantly and we can only hope that this trend continues to decline. The acknowledgement that this strain generally causes a less severe illness and the lowering of many of the travel restrictions across the world will put us in a much better position to capitalise on the touristic demand moving forward. That being said the business has had a sustained period without any income and it will take some time for us to regroup and reestablish our financial position. We will be providing an update as to the restoration of paying rental income to owners of properties that have been rented therefore addressing the payment of all monies outstanding to our clients. I would like to reiterate my thanks to all clients who have continued to pay their Beach Resort Management fees to ensure the maintenance of the Resorts. I would like to remind all clients whose fees remain outstanding to please ensure prompt payment moving forward in order that we can continue to provide a quality service to you and tourists, and therefore the Resorts are properly cared for. This is only possible if all clients are paying their fees, otherwise it creates disproportionate amounts being received that is not commensurate with the work that is required to maintain Resorts of this size. Construction works on White Sands Resort are expected to recommence as soon as the Group is in a position to do so. As described above, we have had the gargantuan task of restarting operations after more than 18 months of closure due to the pandemic which have only delayed matters even more for our clients on White Sands. I totally appreciate the frustration of many of our clients on White Sands feel and I would like to extend my assurance to all of you that we are using our best efforts to complete this Resort. You have my absolute assurance that the Group has tried many times to progress with White Sands in order to deliver properties to our valued clients however we have faced many issues beyond our control as outlined in previous correspondence. The Group remains absolutely committed to delivering White Sands Hotel as soon as possible and we will endeavour to keep all clients abreast of matters concerning this development moving forward. We hope that 2022 will provide much greater confidence for the touristic sector and we hope to bring you good news very soon. Finally I would like to thank you for your tremendous patience and support through this incredibly difficult period. Rob Jarrett Founder and Executive Chairman

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