Vernissage Mall Project - Refinancing

20 March 2013

MirLand Development Corporation plc

("MirLand" or the "Company")

Vernissage Mall Project - Refinancing

MirLand, one of Russia's leading residential and commercial property developers, is pleased to announce that on 20 March 2014, Global 1 LLC (the "Subsidiary") entered into a loan agreement with the Bank of Moscow (the "Bank"), pursuant to which the Bank will provide credit to the Subsidiary up to an amount of US$49 million (the "Loan"), for the purpose of refinancing the Vernissage Mall project (the "Project"). The Subsidiary is held indirectly by Mirland through Inverton Enterprises Limited ("Inverton"), a company in which Mirland currently holds 50.5%. This refinancing follows the Company's decision in December 2013 to consolidate the control of this highly attractive investment in acquiring the remaining 49.5% of the shares in the Project which it did not already own, and represents the final condition outstanding to the completion of that acquisition.

The Loan will be primarily used to repay an outstanding loan in the amount of approximately US$22 million from Gazprom Bank, provided to the Subsidiary in the past, and for the purpose of completing the purchase of the remaining shares of Inverton.

The Loan is for a period of seven years, after which it will be possible to extend the Loan period by [up to] three additional years. The Loan principal is to be paid in quarterly installments, with the last repayment representing 49% of the Loan balance.

In order to guarantee the repayment of the Loan, Inverton and the Subsidiary provided the Bank with a pledge on leasable space of approximately 34,000 sqm in the Project and a pledge on land lease agreements of the pledged building. Additional terms of the Loan include a mortgage on the above securities, a guarantee provided by the Company and a pledge on the inter-company group loans. The Company undertook, inter alia, to maintain an LTV for the Project of no more than 70% and an occupancy rate of more than 90%, in order to comply with the debt service coverage ratio, which shall be no less than 1.35x.

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