Agreement with Pluto re loan repayment

COMPANY ANNOUNCEMENT

FOR IMMEDIATE RELEASE 19 July 2012

SOFIA PROPERTY FUND LIMITED

(the "Company")

Company Registration Number: 43191

 Agreement with Pluto on extension of loan repayment

The Company announced on 28 June 2012 that the loan of £500,000 made available from the Pluto Partnership ("Pluto") as announced on 29 June 2011 became repayable, together with the applicable redemption premium, on 28 June 2012 and that it was in discussions with Pluto with a view to deferring the repayment of such loan and crystallisation of security granted therefore.

The Company is now pleased to announce that Pluto has agreed to extend the repayment date to 31 July 2012. Pluto and the Company have also agreed that if a pre-defined qualifying event as envisaged in the announcement of 29 June 2011 ("Transaction") occurs or is agreed on or before 31 July 2012 or funding is then in place to complete a Transaction in due course notwithstanding the grant of the extension, the terms of the Transaction will provide for full repayment of loan principal and redemption premium on completion of the Transaction.

If funding is not in place to complete a Transaction on or before 31 July 2012, or if funding is in place by such date but a Transaction does not complete by 31 December 2012, the above extension means that the redemption penalty will come into operation if repayment of principal plus redemption premium is not made on or before July 31 2012. In such a situation Pluto will have the right (but not the obligation) to acquire title over the Company's properties at Crystal Glade and Dolna Banya (Lake).

Further announcements will be made as appropriate.

Enquiries:

Sofia Property Fund Limited

Charles Burton

Panmure Gordon (UK) Limited

Dominic Morley

Phone: +44 207 614 8388