Mriya Agro Public : Operational Update, March 2016

c3292b4c-744f-4a12-81c4-4f3da58732a8.pdf OPERATIONAL UPDATE, March 2016

28 April, 2016

Key Events of March 2016 /02

• In March Mriya Agro Holding successfully started spring sowing campaign. The company has allocated over 87 kha of land for 2016 spring crops. In Mriya's spring crop rotation this year's leader is sunflower, which is to be sown on more than 45 kha. The spring crop area includes fields sown with winter rapeseed, which did not survive winter frosts and will be re-sown with spring rapeseed and sunflower.

• At the end of Q1 2016 Mriya Agro Holding has almost finished its organizational restructuring of operations as planned. The permanent staff is employed according with clusters' organizational charts. The process of taking seasonal labor for field work is underway.

• Mriya has repaid almost $16 million of the $25 million of Working Capital facility that it raised in June 2015. The repayment period of the c. $9 million balance approved by the Working Capital providers is until 30 April 2016.

• Currently, the company is in negotiations to obtain working capital for the 2016 season. Mriya has received an offer of WC of $50 million from a consortium of existing bondholders and international investors. The working capital offer will allow the company to complete the 2016 spring sowing campaign and harvest season. The credit is conditional upon successful approval of the restructuring agreement by a majority of creditors.

  Agricultural Operations (1/2) Winter crops 2015/16 - Sowing Comments /03

  Crop	In ground as of 31/03/16, kha	Total planned *, kha	Completion, %
  Wheat	61,3***	60,6	101%
  Rapeseed	7,2**	20,6	35%
  Barley***	0,2	0,2	100%
  Total	68,7	81,3	85%

  • The inspection of the condition of winter crops that was conducted at the end of March revealed a loss of 4,9 kha of rapeseed after winter. This area will be re-sown with spring rapeseed and sunflower. The winter wheat and barley are currently evaluated as being in good condition.

• Total planned area reduced from 97,4 kha to 81,3 kha due to the land bank rationalization

  **Taking into account the loss of 8,5 kha of rapeseed in November due to weather conditions and loss of 3,6 kha of rapeseed and 1,3 kha of rapeseed revealed by the field inspection in February and March respectively

  *** As a result of the ongoing process of audit of land plots

  Agricultural Operations (2/2) Spring crops 2016 - Sowing Comments /04

  Crop	In ground as of 31/03/16, kha	Total planned, kha	Completion, %
  Spring rapeseed	2,13	9,79	22%
  Spring barley	9,80	11,17	88%
  Sunflower	-	45,59	-
  Corn	-	9,34	-
  Soya	-	7,48	-
  Potato	-	1,99	-
  Other	0,05	1,72	3%
  Total	11,97	87,08	14%

  • Mriya Agro Holding began the new season fieldwork in early March. The company began its sowing campaign with spring barley, rapeseed and peas.

  • The leader of Mriya's spring crop rotation this year is sunflower that will be planted on more than 45 kha of land. Company will also plant spring barley on 11,17 kha of land, corn and soybeans on 9,34 kha and 7,48 kha respectively. The area under potatoes will be significantly increased this year in comparison to the previous year and comprise of 1,99 kha.

  • Other crops include sorgo and silage corn necessary for the company's livestock business.

  • The fields are currently in the phase of tillage and of the application of liquid ammonia fertilizers.