Issue of Series D Bonds and Warrants

11 November 2010

MirLand Development Corporation plc

('MirLand' / the 'Company')

MIRLAND ISSUES SERIES D BONDS AND WARRANTS

MirLand Development Corporation plc, one of the leading residential and commercial property developers in Russia, is pleased to announce that it has raised approximately US$18 million (65.4 million New Israeli Shekel ("NIS")) by issue of NIS 66,080,000 D Series bonds (the "Bonds") to the public in Israel.

The Bonds are to be redeemed in 4 annual, equal and consecutive payments on 30 November from 2014 to 2017 (inclusive). Interest is payable on the Bonds, in semi-annual payments, at the annual rate of 6% linked to the Israeli consumer price index. In the event of any downgrading of the current rating of the Bonds (ilBBB), the interest rate will be increased by 0.5%.

In addition, the Company issued to the public in Israel, for no additional consideration, 660,800 warrants (series 1). Each warrant is convertible into NIS 100 NIS par value D Series bonds against cash payment in the amount of 99 NIS. Warrants not exercised before 5 December, 2010 shall expire.

The proceeds of the Bonds will be applied for general working capital purposes.

Commenting on the issue, Chairman of the board Nigel Wright, said: "We are pleased with the take up of the new Bonds, the proceeds of which will provide us with additional working capital to support the development of our current pipeline of residential and commercial assets".

For further information, please visit www.mirland-development.com, or contact: