Update on all litigation

To: Bucharest Stock Exchange

Financial Supervisory Authority

London Stock Exchange

Current report according to Article 113 point A, paragraph (1) letter j) of the Romanian National Securities Commission Regulation no. 1/2006 regarding the issuers and the operations with securities, as subsequently amended and completed, as well as the provisions of Article 99 of the Code of the Bucharest Stock Exchange, Title II, Issuers and Financial Instruments.

Important events to be reported:

Update on all litigations between a litigant and Fondul Proprietatea SA

Franklin Templeton Investment Management Ltd. United Kingdom Bucharest Branch ("the Fund Manager"), in its capacity as sole director and fund manager of Fondul Proprietatea SA ("the Fund"), would like to update shareholders and investors on all ongoing cases between Ioana Sfiraiala (the "Litigant") and the Fund, as set out in the table enclosed as Annex to this report.

In particular, the Fund Manager would like to note that the Bucharest Court announced on 23 October 2015 that it has rejected the Litigant's claim in file no. 17692/3/2013 as being ungrounded.

The said Litigant's claim targeted the annulment of EGM Resolution no. 2/4 April 2012 for amending the Constitutive Act and EGM Resolution no. 3/25 April 2012 for the decrease of the subscribed share capital. The court's decision is not final, being subject to appeal.

The updated table of all pending files, as well as all closed files with the same Litigant, is available on the Fund's webpage at http://www.fondulproprietatea.ro/sites/default/files/list_of_pending_and_closed_cases_with_is_26_october_2015.pdf.

Franklin Templeton Investment Management Ltd. United Kingdom Bucharest Branch, in its capacity of Sole Director of FONDUL PROPRIETATEA S.A.

Oana Valentina Truța

Legal Representative

Report date:26 October 2015

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 10,074,080,745.90

Paid-up share capital:RON 9,746,649,630.90

Number of shares in issue:

11,193,423,051

Number of paid shares:

10,829,610,701

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

ANNEX

Crt.

File number 

Court

The object of the court file

Status

 Next hearing

1.

File no. 692/299/2014

1st District Court House

Legal action filed by the Fund against the Litigant and her husband for the annulment of certain legal deeds concluded between them with an aim of separating the assets between them; this legal case in relation to the forced execution initiated by the Fund against the Litigant for the recovery of legal fees.

After first procedural hearings, the next hearing has been set for 10 December 2014. Next hearing has been set for 28 January 2015. On 28 January 2015 the Court has postponed the hearing for 11 March 2015. On 11 March 2015 the Court set a new hearing for 22 April 2015. A new hearing has been set for 17 June 2015. On 17 June 2015 the Court postponed the hearing for 16 September 2015. Litigant filed a recusal claim, which was dismissed. Next hearing set for 11 November 2015.

11 November 2015

2.

File no. 10360/299/2013

Bucharest Court of Appeal

The Fund started the case for recovering some legal fees.

On 10 December 2012 the Bucharest 3rd District Court decided to send the file to Bucharest 1st District Court. The first hearing has been set for 6 September 2013. On 6 September 2013, the Court postponed the hearing due for procedural reasons for 4 October 2013. The Court postponed the hearing for 15 November 2013. On 15 November 2013 the Court decided to postpone the hearing. On 18 December 2013, the Court postponed issuing a decision for 19 December 2013, when the Court partially admitted the Fund's request and obliged the Litigant to pay some legal fees to the Fund. The decision was appealed - the Court awarded a partial 200,000 RON to the Fund as litigation expenses. The Fund filed a second appeal.

23 November 2015