Villa World : 23 Mar 2017 - Completion of Placement

23 March 2017

Completion of Placement

The Company is pleased to announce that it has completed a fully underwritten placement to raise approximately $20 million, through the issue of 8,889,000 new ordinary shares at an issue price of $2.25 per share (the "Placement").

The Placement issue price of $2.25 per share, represented a 5.5% discount to the closing price of the Company's shares on 20 March 2017 (the last day in which the shares of the Company traded before launch of the Placement), and a 6.6% discount to the volume weighted average price for the 5 trading days prior to (and including) 20 March 2017.

The Placement is expected to settle on 28 March 2017 and shares will be allotted on the following business day, 29 March 2017.

The Company's CEO and Managing Director, Craig Treasure said, "We are very pleased with the outcome of the Placement, which shows strong support for our growth strategy. We thank our existing shareholders for their continued backing and we are also very pleased to welcome a number of new institutions to the Villa World register.

We are pleased that all of our existing eligible shareholders have the opportunity to apply for new shares under the Share Purchase Plan that we announced concurrently with launch of the Placement."

Additional information in relation to the Placement and Share Purchase Plan is included in the presentation released to the ASX on 22 March 2017.

For enquiries: Craig Treasure

CEO/Managing Director Tel: (07) 5588 8888

securityholder@villaworld.com.au

This announcement has been prepared for publication in Australia and may not be released or distributed in the United States. This announcement does not constitute an offer to sell, or the solicitation of an offer to buy, securities in the United States. The securities described in this announcement have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or the securities laws of any state or other jurisdiction of the United States and may not be offered or sold, directly or indirectly, in the United States except in transactions exempt from, or not subject to, the registration requirements of the U.S. Securities Act and other applicable U.S. state securities laws.

This announcement is not financial product or investment advice, a recommendation to acquire securities or accounting, legal or tax advice. It does not constitute an invitation or offer to apply for securities. It has been prepared without taking into account the objectives, financial or tax situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial and tax situation and needs and seek legal and taxation advice appropriate for their jurisdiction. Villa World Limited is not licensed to provide financial product advice in respect of an investment in securities.