Investor Presentaiton

A WATG Master Plan Phase III pending Tourism Development Authority (TDA) approval Phase 3 Phase Phase 2 RED SEA Phase III shapes and brings online phased districts totaling 20 million square meters, and is the key to transforming the development from a pure resort to a thriving resort city. The WATG design introduces the heart of the city: hospitals, schools, office buildings and SMEs are among the developments that will shape a year-round municipal downtown at Sahl Hasheesh. . . • • • • • After the 2011 uprising, the TDA withdrew land plots from many developers, including ERC. The allocation of Phase III of Sahl Hasheesh was cancelled, with the justification that ERC did not submit the master plan of Phase III. There were no prior notices for this withdrawal, which violated the land allocation agreement. ERC immediately submitted the master plan, which had been ready but was undergoing minor fine adjustments, and followed the legal steps by filing an appeal to the TDA to reverse this decision. ERC also submitted an appeal to the Dispute Resolution Committee under the TDA. ERC then filed a case against the TDA and the court forwarded the case to the Panel of Experts to investigate and report their opinion. ERC is optimistic about the outcome because of its strong legal position and because the government not only wants but also needs to resolve all disputes that have crippled the real estate and tourism sectors and the economy in general. 17 Investor Presentation 3Q 2015 ERC Egyptian Resorts Compeny

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