Thunderbird Resorts : 2016 Half-year Report Press Release 31August2016 FINAL

Copies of the Half-year report in the English language will be available at no cost at the Group's website at www.thunderbirdresorts.com. Copies in the English language are available at no cost at the Group's operational office in Panama and at the offices of our local paying agent ING Commercial Banking, Paying Agency Services, Location Code TRC 01.013, Foppingadreef 7, 1102 BD Amsterdam, the Netherlands (tel: +31 20 563 6619, fax:

+31 20 563 6959, email: iss.pas@ing.nl). Copies are also available on SEDAR at www.SEDAR.com.

Below are certain material excerpts from the full 2016 Half-year Report the entirety of which can be found on our website at www.thunderbirdresorts.com.

LETTER FROM THE CEO

Dear Shareholders and Investors:

While we always give considerable thought to the Letter from the CEO, the letter in this 2016 Half-year Report is of particular importance, with a four-part agenda as follows. Sections 2 and 3 below are of particular relevance for shareholders who wish more insight into the Special Resolution that has been sent for consideration at our September 21, 2016 Annual General and Special Shareholders' Meeting.

1. Summarize progress through the 2016 Half-year period against our previously-stated goals.

2. Describe the rationale for the special resolution that has been sent to shareholders for consideration at our September 21, 2016 Annual General and Special Shareholders' Meeting. The resolution referred to is a Special Resolution that the Company may post-sale of its assets: Pay a liquidating distribution to shareholders and formally liquidate and dissolve the company.

3. Describe those factors that could impact the net value of the Group's assets as compared to its current market capitalization. Those items discussed herein are: i) Valuation metrics commonly used in our markets for the acquisition of gaming cash flows and for commercial real estate; and ii) Valuation adjustments that are most typical in these types of transactions such as asset transfer tax, capital gains tax, contingencies, escrows, potential litigation liabilities or assets and such working capital items as cash and cash equivalents, pre-paid expenses and deposits and borrowings.

4. Summarize our conclusions and offer key notes for consideration.

Please refer to the section entitled "Forward Looking Statement" on page 2 which contains all of the admonitions concerning reliance on the information we provide to you. In summary, none of the information described in points 2 and 3 in this letter should be relied on in your analysis of the net liquidation value of the Group. Rather, we would expect you as a shareholder to perform and rely on your own research and on the publicly available financial information provided by the Group in 2016 and in previous years. Any and all "metric" information provided in points 2 and 3 of this letter should not be relied upon by potential acquirers of our assets as the Group will seek to sell assets at values that protect the interests of our shareholders. Any final pricing of any Group asset will be based on numerous factors, including the number of bidders, the terms of the particular transaction, the time-value and other considerations that the Group deems relevant to setting the final terms of a specific transaction.

1. PERFORMANCE UNDER OUR PREVIOUSLY-STATED GOALS

   In the CEO Letter to Shareholders published in the 2015 Annual Report, the Group stated certain goals that support achieving profitability and building a healthy company. A detailed update can be found in the remaining chapters of this report. Below is a summary update on our progress through June 30, 2016.

2. Increase our EBITDA1: Adjusted EBITDA (after deducting Corporate-level expenses) reduced by $333 thousand or 18.1% on a USD basis as compared to Half-year 2015. However, under a currency neutral analysis (in which the same exchange rate would be applied to both periods), the Group's Adjusted EBITDA decreased by only $31 thousand or 2.0% as compared to 2015. The $333 thousand reduction of Adjusted EBITDA was driven by $1.5 million in decreased revenues for the Group, meaning that the Group has also made corresponding cuts in expense to offset the revenue loss as reported in US dollars. Moreover, under a currency neutral analysis (in which the same exchange rate would be applied to both periods), Group revenue would actually have reduced by only $37 thousand, meaning that a reduction in revenue was in fact primarily an issue of foreign exchange.
3. Improve our Profit / (Loss): Our Loss from Continuing Operations improved by $906 thousand or 38.8%. The improvement is the result of reduced interest and financing costs and higher Other gains as compared to Half- year 2015. Other gains are mainly related to the sale of the office building in Panama.

4. Reduce our borrowings: Gross debt2 has been reduced to $30.3 million on June 30, 2016 as compared to $32.1 million on December 31, 2015. Net debt (gross debt less cash and cash equivalents) has been reduced to $28.2 million on June 30, 2016 as compared to $29.3 million on December 31, 2015.

5. SPECIAL RESOLUTION PROVIDED TO SHAREHOLDERS FOR CONSIDERATION

   On August 25, 2016, the Group sent to shareholders the supporting materials for our September 21, 2016 Annual General and Special Shareholders' Meeting. Included within those materials was a Special Resolution requesting that the Company's shareholders approve the following:

   BE IT RESOLVED THAT:

6. The Board of Directors of the Corporation is hereby authorized, at a time to be determined by the Board of Directors of the Corporation, to voluntarily dissolve the Corporation pursuant to the BVI Business Corporate Act of 2004, which winding up process and dissolution application shall be commenced and implemented at such time as determined by the Board in their sole discretion;

7. The Board of Directors of the Corporation is hereby authorized to make provision for and to discharge all liabilities of the Corporation in conjunction with the winding up and dissolution of the Corporation and in connection with such winding up and dissolution, is authorized to make a pro rata distribution to shareholders of the net proceeds available to the Corporation (after adjusting for carrying costs and other winding up and dissolution related expenses) from the sale of any or all remaining assets of the Corporation in such amounts and at such times as determined by the Board of Directors;

8. Any one director or officer of the Corporation be and is hereby authorized and directed to do all such things and to execute and deliver all documents and instruments as may be necessary or desirable to carry out the

   terms of this resolution, including but not limited to the filing of articles of dissolution under the BVI Business Corporations Act; and

9. The directors of the Corporation may, in their discretion, without further approval of the shareholders, revoke this special resolution at any time before the filing of articles of dissolution under the Business Corporation Act (BVI) in respect of the foregoing.

10. Granting the Board of Directors the right to voluntarily dissolve the Corporation does not mean that the same will occur. Approval of shareholders in advance allows the Board the flexibility to undertake the same should the Board deem it to be in the best interest of shareholders based on the circumstances at the time, without the risk of delay of approval of specific transactions or the expense of calling another shareholder meeting to specifically approve such matter. In the event that the Company proceeds with its plan to liquidate and dissolve, the company in due course intends to delist from the Euronext Amsterdam in accordance with the rules and procedures of the Euronext Amsterdam.

    Also included within the materials for the Annual General and Special Shareholders' Meeting was a rationale for this Special Resolution, which we summarize immediately below.

    As published in the Corporation's 2014 Half-year Report, 2014 Annual Report, 2015 Half-year Report, the Q3 2015 Interim Management Statement, and the 2015 Annual Report, the Board of Directors and Management both believe that the market capitalization of Thunderbird Resorts Inc. is less than its intrinsic value, which we define as:

    The net proceeds which the Group could achieve through liquidating all operating and real estate assets; plus the net proceeds achievable from completing all tax and non-tax litigations and fulfilling all escrow periods for escrows; and less carrying costs to manage process and operations while the Group remains a publicly-traded company.

    Moreover, the Board of Directors and Management believe that it is increasingly difficult to finance growth and to achieve accretive value for the following reasons:

11. The lack of liquidity in our stock means that we cannot use our stock as currency to acquire cash flow.

12. Banks are increasingly reticent and many now even prohibit working with gaming companies, which means that access to competitively priced debt and amortization schedules is now virtually impossible to achieve, and therefore bank financing is not a mechanism for investment in growth.

13. The Group has historically relied on high-yield bonds, but this market has dried up for two reasons: i) The stage of development of gaming in our markets has matured in recent years, meaning that the gaming sector in these markets is experiencing relatively moderate growth and can no longer afford the double-digit interest rates and single-digit loan periods that are standard requirements of high-yield bonds; and ii) Even if the Group could afford to service high-yield bonds, since the financial crisis bond investors are exceedingly more cautious about investing and there are far fewer of them.

14. Our geographic markets have large concentrations of wealth in few hands, which means that the number of acquirers for our real estate assets are small and the time to sell at a competitive price can be exceedingly long, which means we are not able to generate proceeds from real estate asset sales on a timely basis to invest in growing our operating assets.

    Because the Group believes that shareholders should achieve higher returns through a liquidating distribution as compared to the market cap at the date of publication of this 2016 Half-year Report and as compared to some future market cap given the lack of resources to invest in growth, we recommend that the shareholders carefully consider the Special Resolution as described. We also suggest that shareholders consider the low level of liquidity for the

    stock of Thunderbird Resorts Inc., and the difficulty that low demand creates for shareholders to achieve an exit via the market.

    To view all of the materials for the Annual General and Special Shareholders' Meeting, including a copy of the resolution itself, please click on the following link:

    http://thunderbirdresorts.com/wp-content/uploads/2016/08/2016-AGM-press-release-aug-25-2016.pdf.

15. MARKET-BASED VALUATION METRICS

    The Group operates in different markets, we have varied ownership levels in our assets, and we operate in sectors ranging from gaming to hospitality to real estate. Because there are many factors that could influence the realizable value of liquidated assets, shareholders may find it challenging to get comfortable with their own analyses of the net value of the Group's assets. By reviewing this section along with the full 2016 Half-year Report, the Information Circular (see link above) and relevant past disclosures, we hope you will have sufficient information to prepare your own analysis. Should you have follow-up questions, please kindly direct them to Albert Atallah, General Counsel via email to aatallah@thunderbirdresorts.com. We will publish any price sensitive information stemming from these questions and answers.

    While it is not appropriate for the Board of Directors or Management to forecast net asset values or to forecast the possible ranges of liquidating distributions to shareholders, below we do provide metrics that are commonly used in markets in which we own assets.

16. Valuation of Gaming Cash Flows: Earnings before Interest, Tax, Depreciation and Amortization ("EBITDA") is widely used in the gaming industry in our markets as a substitute for operating cash flow. To determine the gross value of EBITDA in our markets, acquirers and sellers commonly reach a valuation based on a range of 4.5X to 6.0X historic EBITDA rather than a formula based on the net present value of forecasted future cash flows. Valuations below 5X EBITDA are generally reserved for poorly managed businesses that require material upgrades to sustain revenue. Valuations of 6X are generally reserved for premium locations with demonstrable growth potential. Our gaming EBITDAs for Peru and Nicaragua totaled $5.6 million in 2015 and our unaudited, preliminary gaming EBITDAs through half-year 2016 are approximately $2.5 million. Please remember that the Group is a 100% shareholder of all of its Peru real estate and operating assets and a 55.9% shareholder of all of its Nicaragua real estate and operating assets, so EBITDA multiples should be calculated on a pro rata basis.

17. Adjustments to the Valuation of Gaming Cash Flows: Common adjustments to the valuation of gaming EBITDA include: i) Add back adjustments for corporate shared services that could be redundant for a buyer, meaning that there could be a discussion of a price increase based on synergistic efficiencies to be passed to a buyer that operates in the market; ii) In the case of an operation sold that is not currently paying a lease because it operates within real estate we own, a lease amount might be negotiated based on cap rates similar to those provided in paragraph 3C below and deducted from the EBITDA calculation used to determine valuation of gaming cash flows as per paragraph 3A above; and iii) Typical working capital adjustments based on balance sheet items.

18. Valuation of Income-producing Real Estate: The value of income producing real estate in our operating countries and sectors is generally determined by capitalization rates ranging from 9% to 11% depending on the quality of the real estate and whether it supports hospitality, office or gaming operations. Special Note on the Real Estate of Fiesta Hotel & Casino: The Fiesta Hotel & Casino is a mixed-use hotel, office complex and retail real estate property in the heart of Miraflores, Lima in Peru. We are currently in discussions with several qualified investors, all of which are either financial investors or strategic investors who do not operate in the gaming sector. The April 2015 real estate valuation for this property was provided by a well-respected real estate appraisal firm that is commonly used by banks in Peru when evaluating real estate loan transactions.