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Court of Appeal Decision 08/06/2016

Donegal Investment Group plc ("DIG" or the "Company") 8 June 2016 As advised previously, the Company took a shareholder oppression claim relating to its shareholding in Elst (the unlimited holding company of the Monaghan Middlebrook Mushrooms business) ("Monaghan") (the "Oppression Action"). The respondents (being the majority shareholders in Elst) ("Respondents") admitted specified and unspecified acts of oppression and on 21 May 2015, the Commercial Court (a division of the Irish High Court) ordered the Respondents to purchase the shares held by the Company in Monaghan (the "Donegal Shareholding") (the "Remedy"). The Company appealed the valuation placed by the Commercial Court on the Donegal Shareholding in Elst (€26,228,570) ("Valuation Appeal") and the Remedy ("Remedy Appeal") to the Court of Appeal. The Court of Appeal gave judgment today 8 June 2016 in relation to the Valuation Appeal and the Remedy Appeal. The Valuation Appeal was successful and the Court of Appeal has, remitted the Valuation of the Donegal Shareholding back to the Commercial Court to determine the price at which the Respondents shall purchase the Donegal Shareholding (the "New Hearing"), as well as including directions to the Commercial Court, to be set out in a formal order in the next two weeks, that the price for the Donegal Shareholding should be the full current market value of the shares without application of a minority discount or marketability discount. The Remedy granted by the Commercial Court, i.e., that the Respondents buy out the Donegal Shareholding, save in relation to the precise amount which is to be determined in the New Hearing l, was upheld. It is not clear when the price for the Donegal Shareholding will be finally determined by the Commercial Court in the New Hearing. The costs of the Court of Appeal actions have not yet been determined. The Company will provide a further update at the appropriate time. END


Donegal Investment Group

Ian Ireland,

Managing Director

Telephone: + 353 74 912 1766

Investec Bank plc ﴾Irish Branch﴿

Jonathan Simmons,


Telephone: + 353 1 421 0351