AGM Announcement 2016

Donegal Investment Group plc ("DIG" or the "Company")

6^th July 2016

AGM Statement

Donegal Investment Group Plc held its AGM today.

The Chairman Mr. Geoffrey Vance stated that the Group performance in 2015 had once again been impacted by the performance of its produce division in contrast to the very positive performance of its food-agri property division.

Turnover from continuing operations increased by 2.7% delivering adjusted earnings per share of 26.6c. The produce division has been impacted by difficult trading conditions in certain markets and import regulation changes in a key North African market. Mr. Vance also commended the exceptional progress being made in developing and scaling Nomadic, the speciality dairy business.

Mr. Vance stated that the Group's overall performance was on plan for 2016 and the first six months of 2016 should be ahead of the equivalent period in 2015. Mr. Vance remains cautious with regard to full year outcome due to the significant dependency of full year results on the Produce business performance in the final quarter of the year. While plantings to date are slightly behind due to spring weather conditions they still remain in line with plan.

Mr. Vance also announced the board’s intention to change the company’s year end from 31 December to 31 August. This will allow the Group to have greater visibility on the seasonal performance of its produce and animal feeds business in advance of each new year ending in August going forward. This is in contrast with the current year end of 31 December which, due to its timing, makes forecasting of full year out-turn difficult due to the significant dependency of the Produce business’ performance on final quarter volume shipments of seed potato. The Group will therefore publish results for the eight months to 31 August 2016 in November with its new interim results reporting period being to the end of February in each year going forward.

Further to the Court of Appeal decision on 8 June 2016, the Group will no longer account for its shareholding in Monaghan Mushrooms as an associate but rather as an asset held for sale. The last update on the ongoing court case was provided in our announcement of 8 June. Further to this, the rehearing of the valuation module is currently scheduled to commence on 8December 2016.

The Board remains optimistic about the global potential of the Group's Produce business, the high growth being delivered in the Group's speciality dairy business and the ability of the rest of the Group's businesses and assets to provide cash.

Further guidance was also given by Mr. Vance with regard to the use of any potential surplus funds generated by the proposed sale of the Grianan Estate and, following the retrial of the valuation module, the Group’s shareholding in Monaghan Mushrooms. The Board is actively considering, subject to the requirements of the Group’s businesses, a return of capital to its shareholders.

Mr. Vance thanked all stakeholders for their contribution in the last year.

Each of the resolutions proposed at its Annual General Meeting today were approved by shareholders. The full text of each resolution was set out in the Notice of Annual General Meeting circulated to the shareholders and available on the Donegal Investment Group website.

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