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05 December 2007

Newfound NV update

At an extraordinary general meeting held on 04 December 2007, Newfound NV shareholders approved an arrangement that would see the issue of shares to two directors at a value of 7.0 million pounds sterling. This gives the company needed operating capital.

As well, the company has raised an additional 3.6 million pounds sterling through a share placement to unspecified institutional and other investors.

A corporate news release stated:

The proceeds of the Placing, together with those of the Subscription, will be used for general working capital purposes and to allow the Company to pursue its revised business strategy. The Company's strategy is to:

* Focus on the conservation of working capital in the near term, including, inter alia, reduction of overheads at Humber Valley Resort;

* Further develop its current projects to build additional value and returns, which will include, inter alia, the development of relationships with branded operators and resort funds, driving sales growth through marketing led development, finalising the Nevis masterplan and obtaining outline planning permission, and the pursuit of debt financing for ongoing resort development supported by the assets of the Group;

* Review and assess opportunities for bulk land sales, sales of legacy plots and re-sales;

* Expand holiday sales through direct and specialist tour operators and partnerships with holiday sales companies for Humber Valley Resort;

* Expand the resort portfolio in the long term.

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