Mriya Agro Public : Operational Update, June 2016

OPERATIONAL UPDATE, June 2016

02 August, 2016

Key Events of June / mid-July 2016 /02

• Mriya successfully finished its spring sowing campaign in the first half of June and began its harvesting campaign in the middle of July as planned. The harvest began with threshing of winter barley, wheat and rapeseed.

• In mid-July, the company received additional $14 million of Working Capital financing provided by Mriya's existing bondholders. The funds will cover Working Capital needs to complete the harvesting and to prepare for the autumn sowing campaign. In total, the company obtained $41 million of 2016 Working Capital financing from the company's current creditors.

• The conditions under which 2016 Working Capital facility was offered to the company have changed the overall restructuring parameters as agreed among the Coordinating Committees of the creditors in November 2015 and therefore the creditors have entered into negotiations to agree on amended restructuring terms and conditions.

• On July 1, the company's logistics base located in the city of Khorostkiv, Ternopil region was occupied by unknown persons led by a lawyer affiliated with the former owners of Mriya, the Guta family. The access to the site has been closed for the company's employees by the mentioned persons who have also attempted to take control over equipment located on the premises. The territory is still being occupied as of the date of this report. Mriya holds all the documents necessary to confirm the legality of its presence and operations at the site. The company is in contact with the law enforcement authorities and intends to protect its rights using all the available legal means.

Agricultural Operations (1/2)

Crop	In ground as of 30/06/16, kha	Total planned , kha	Completion, %
Wheat	61,2	60,6	101%
Rapeseed	6,7*	20,6	33%
Barley	0,2	0,2	100%
Total	68,1	81,3	84%

Winter crops 2015/16 - Sowing Comments /03

*Taking into account the winter rapeseed losses of 13,9 kha

• In the end of June, Mriya was fully ready to start its winter crops harvesting campaign which was scheduled for the middle of July.

• Winter wheat and barley yields are expected to be at the budgeted levels. Winter rapeseed suffered because of weather conditions and late fertilization due to late WC arrival. Its yield is forecasted to be at 19% of the budgeted level.

• Due to late arrival of fertilizers, we expect a larger negative impact on rapeseed yields than on wheat yields.

  Agricultural Operations (2/2) Spring crops 2016 - Sowing Comments /04

  Crop	In ground as of 30/06/16, kha	Total planned, kha	Completion, %
  Spring rapeseed	8,7**	9,8	89%
  Spring barley	11,2	11,2	100%
  Sunflower	42,5*	43,3	98%
  Corn	9,1	9,1	100%
  Soybean	6,0	6,0	100%
  Potato	2,0	2,0	100%
  Other	2,0*	2,5	80%
  Total	81,5	83,9	97%

  • Mriya successfully finished its spring sowing campaign in the first decade of June in line with the company's planting schedule.

  • During June, the fields were in the phase of the application of nitrogen & mineral fertilizers and spraying of plant protection chemicals.

  • Straight after harvesting, company starts the preparation of the soil assigned for sowing the 2016/2017 winter crops sowing campaign.

*The sowing area was reduced due to management decision in order to optimization

**Taking into account the loss of 1,1 kha of spring rapeseed in June due to late fertilization