1. Pepper Club The Hottest Address in Cape Town

2. The Investment Consists of: An apartment (Sectional Title Ownership) A furniture pack by a leading hotel designer, A rental pool operated by experienced hotel operators, Gatsby International Hotels (Lanzerac Hotel & Spa, Stellenbosch) – www.gatsby.co.zawww.gatsby.co.za 1

3. Mortgage Finance Investors are offered: Guaranteed interest rate of up to PRIME MINUS 5% Equates to 10.5% pa For 24 months On up to a 90% Mortgage Bond 2

4. Payment terms Apartment & Parking Bay – 5% deposit : 7 days from signature – 10% deposit: 90 days from signature – Balance of purchase price on Transfer Note: Investors also purchase a standard furniture pack (not financed by the banks) priced from R120 000 3

5. Projected Revenue 12% for the first year of operation (Dec 2009 to Dec 2010) increasing by 10% pa Or guaranteed 8% pa - for 2 years 4

6. Taxation - Allowances UDZ Allowance – 55% of unit cost – 11% in the first year – then 4.4% for 10 years Depreciation Allowance – 20% pa on the cost of the Furniture pack Tax Deductable Interest – Interest payable on all funds borrowed to finance the investment is tax deductable Assessed Tax Losses – Tax Losses may be set off against any other taxable income or may be carried forward to following tax periods 5

7. Taxation – Based on R1m Investment plus R150 000 Furniture Pack 85% Projected Mortgage Total Tax Net Rental UDZ Dep. Interest Allowance Year 1 138,000 (110,000) (30,000) (89,250) (229,250) Year 2 151,800 ( 44,000) (30,000) (89,250) (163,250) Year 3 166,980 (44,000) (30,000) (89,250) (163,250) Year 4 183,678 (44,000) (30,000) (89,250) (163,250) Year 5 202,046 (44,000) (30,000) (89,250) (163,250) Total 842,504 (286,000) (150,000) (446,250) (882,250) 6

8. Total Return – 85% Mortgage Net Capital Total Return on Income Appreciation Return Investment After Mortgage Interest R R R Year 1 48,750 115,000 163,750 54.583% p.a. Year 2 62,550 126,500 188,050 62.683% p.a. Year 3 77,730 139,150 216,880 72.293% p.a. Year 4 94,428 153,065 247,493 82.498% p.a. Year 5 112,796 168,372 281,168 93.723% p.a. Average 73.156% p.a. Total 396,254702,087 1,097,341 7

9. INVESTOR – 85% LOAN Projected Income, Tax Free to Year 5 Projected period to repay loan only out of projected income In year 6 8

10. 30 Days Free Usage An Investor may occupy his apartment for 30 days each year, free of rental. 9

11. Pepper Club The Hottest Address in Cape Town Only the contents of Agreements signed by the parties may be relied upon. All other representations, written or verbal, are not warranted