Thunderbird Resorts Inc. 2023 Half Year Report - Seite 2

1. SHAREHOLDER MANDATE AND OUR ASSETS

We continue to pursue decisions that support the best interest of shareholders according to the shareholder mandate set forth in the September 21, 2016 Special Resolutions. Please read the following carefully.

1. Peru Real Estate Assets: As of the publication of this 2023 Half-year Report, the Group completed the process to convert a 66-suite hotel into a condominium apartment building of 66 units for sale. In the same mixed-use building, the Group also continues to own approximately 6,703 m2 of rentable-sellable office space, and 91 underground parking spaces. Please note the following:

• The Group completed the conversion of the 66-suite hotel into condominiums. We project to have completed sale of all condominiums in 2023.
• The Group is evaluating the conversion of its 6,703 m2 of offices to apartments. Given the pre-sale performance of the hotel conversion into condominium apartments, the Group has begun an analysis of the conversion of its office complex (located in the same building). We have contracted for construction plans and are in the budgeting mode. We have active tenants, the construction budget would likely be in excess of $3 million, and the timing of such a project could take one to two years. The Group will keep shareholders apprised.
• The Group is also evaluating the conversion of its same 6,703 m2 of offices to flexible office space. In the after math of Covid-19 and the rise of remote work, the Group noticed a rising demand for flexible office solutions. The Group has tested such solutions in the Lima market with approximately 1,000M2 of space, has received positive market response and, simultaneous to evaluating conversion of its offices to apartments, is also evaluating conversion of its offices to co-working and other longer-term flexible options for corporate customers. We have active tenants, the construction budget would likely be in excess of $1.5 million, and the timing of such a project could take one to two years. The Group will keep shareholders apprised as its analyses advance.

1. Nicaragua Gaming and Real Estate Assets: As of the publication date of this 2023 Half-year Report, the Group continues to own a 56% interest in a Nicaraguan holding company that owns the following assets: i) Gaming: Five full casinos and two slot parlors with a combined approximately 733 gaming positions; and ii) Real Estate: Approximately 4,562 m2 of land divided among 5 parcels, and some with tenant improvements as more fully detailed on page 10.
2. Costa Rica Real Estate Asset: As of the publication of this 2023 Half Year Report, the Group continues to own a 50% interest in a Costa Rican entity that owns the 11.6-hectare real estate property known as "Tres Rios". Tres Rios, with its own, dedicated off ramp, is located close to the country's 2nd largest mall on the highway between the capital city of San Jose and the commuter city of Cartago.
3. RETIREMENT OF OUR GENERAL COUNSEL

Finally, we would like to thank Albert Atallah for his 25 years of service as General Counsel. We would like to express our gratitude for his exceptional dedication and unwavering commitment to our company over the years. His expertise has guided us through litigations and legal actions in some of the most challenging countries and against some of the most challenging parties in this world. Albert's resilience, and tireless efforts have been invaluable to our organization. He not only protected our interests but has played a pivotal role in shaping the trajectory of our success. His ability to navigate complex legal landscapes and handle difficult counter parties with grace and professionalism is truly commendable. Albert's contributions have left an indelible mark on our organization, and we are profoundly grateful for his service. We are all deeply appreciative of everything he has done to uphold our values and protect our interests, and he will be missed. We will announce Albert's replacement in due course.