Disclosure of holdings below 20% of voting rights

To: Bucharest Stock Exchange

Financial Supervisory Authority

London Stock Exchange

The current report according to Art. 72 paragraph (6) of Law no. 24/2017 on issuers of financial instruments and market operations, as well as the provisions of Art. 105 of the Rulebook of the Bucharest Stock Exchange, Title II - Issuers and Financial Instruments

Important events to be reported:

Information regarding the disclosure of holdings of below 20% of the total voting rights held by Manchester Securities Corporation and Beresford Energy Corporation in Fondul Proprietatea S.A.

Franklin Templeton Investment Management Ltd. United Kingdom Bucharest Branch, in its capacity as Investment Manager of Fondul Proprietatea SA ("the Fund / Issuer") hereby announces that Manchester Securities Corporation ("Manchester") and Beresford Energy Corporation ("Beresford") have sent an aggregate disclosure of holdings of below 20% of the total voting rights in the Fund, as reflected in the Annex.

According to the companies' representatives, for reporting purposes, by virtue of acting in concert, the combined holdings (shares and Global Depositary Receipts -"GDRs") of Manchester and Beresford as of 24 May 2017 represent 17.583% of the share capital of the Fund and 1,771,365,152 voting rights, representing 19.894% of the total number of voting rights in Fondul Proprietatea as at 30 April 2017, calculated based on the shareholding structure and total number of voting rights disclosed by the Issuer on its webpage: http://www.fondulproprietatea.ro/sites/default/files/current_report_shareholding_structure_as_at_30_april_2017.pdf

Franklin Templeton Investment Management Ltd. United Kingdom Bucharest Branch acting as Investment Manager of FONDUL PROPRIETATEA S.A.

Johan Meyer

Legal Representative

http://www.rns-pdf.londonstockexchange.com/rns/2785G_-2017-5-25.pdf

Report date:25 May 2017

Name of the issuing entity: Fondul Proprietatea S.A.

Registered office: 78-80 Buzesti St.,7th floor, district 1, Bucharest, postal code 011017

Phone/fax number: Tel.: + 40 21 200 9600 Fax: + 40 21 200 9631

Sole Registration Code with the Trade Register Office:18253260

Order number in theTrade Register:J40/21901/2005

Subscribed share capital: RON 5,742,226,025.22

Paid-up share capital:RON 5,534,852,985.72

Number of shares in issue:

10,074,080,746

Number of paid shares:

9,710,268,396

Regulated market on which the issued securities are traded:Shares on Bucharest Stock Exchange

GDRs on London Stock Exchange