Operational Update from TRG

We have received the following operational update from The Resort Group which will be of interest to Dunas and Llana Shareholders.

Update to Stakeholders – 4th Quarter 2025

As we approach the end of 2025 we are in a very different position to this time last year. The resorts in Sal, Cape Verde are achieving close to 100% occupancy. In the remaining months of 2025 this means a huge strain on cash flow, as we cover the immediate costs of hosting full resorts, while the tour operators only remit the income to us from January onwards. However, it will mean we are going to start 2026 in a much healthier position than for some considerable time.

It inevitably takes time for any large organisation to recover from a period of almost two and a half years without revenue, such as we had to weather over the enforced shut-down caused by the global pandemic and the very difficult trading years from 2021 to 2024. Thanks to the hard work of our staff and the support of our major creditors, we are proud of the resilience that the Group has shown. Coming back from such a huge blow takes years as we rebuild our business revenues and use those resources not only to cover the normal costs of operating and maintaining our resorts, but also normalising the creditor

positions arising from the Covid years. We are most grateful for the patience and co-operation of our creditors in particular. We understand that some stakeholders will be tired of hearing the long-lasting impact of the pandemic and the subsequent impact of the energy crisis, but we feel it is important that we try to communicate how these events one after the other have hit us hard, and for any significant but independent business to survive through and then recover from this is a long hard slog.

What is really important is that we have brought about a transformation in our hotel operations from a highly seasonal to all year round much higher occupancy. This has been achieved through an end to the exclusivity enjoyed by TUI and deals secured with easyJet and significant expansion of our business partnership with Nordic Leisure Travel, as well as the relationships enjoyed with over 30 other tour operator and travel agency partners. We have achieved significantly higher resort bookings throughout this past summer season from the Portuguese and Spanish source markets (up over 38% on last year).

We now have multiple strong tour operator partners that will help us to increase occupancy and increase the average room rates across all our resorts going forward. However, with the end to the TUI exclusivities for TUI Suneo and TUI Blue we have now launched two new brand concepts for these resorts from this winter season. The new refreshed and exciting line up of our resorts which now all operate under the

banner of the Lagoon Resort will be:

Melia Sol Dunas Family Fun – a new concept to replace the former TUI Suneo but with the benefit ofrooms being available to all tour operator partners and not just TUI. Indeed, contracts have been signed with Nordic Leisure Travel, easyJet, TUI and several other tour operators ensuring this will be a very busy, vibrant family oriented and affordable offering. VIP Upgrade available. 4 Star Resort

Melia Laguna Beach Resort – a new concept replacing TUI Blue but open to all markets with again major contracts signed with Nordic Leisure Travel Group and easyJet as well as TUI. This adult only resort will offer even greater choice to the adult only sector and with the contracts already signed ensure exceptionaloccupancy. VIP Upgrade available. 5 Star Resort

Melia Tortuga Beach Resort and Spa – retaining the existing brand but we have invested heavily in upgrading and adding to resort facilities. VIP Upgrade available. 5 Star Resort

Melia Dunas Beach Resort – retaining the existing brand but again improved facilities across the resort. VIP Upgrade available. 5 Star Resort

Melia Llana Beach Hotel – retaining the existing adult only concept. This is consistently the most popular and highly occupied resort. VIP Upgrade available. 5 Star Resort

The new complimentary and comprehensive line up of hotel brands is now open to all markets and all tour operators. While we may be moving away from exclusivity with TUI we are by no means losing that relationship. Here is an overview of our biggest partnerships:

TUI

Contracts have been signed with TUI for winter 2025/26 and Summer 2026 for Melia Tortuga Beach Resort and Spa, Melia Dunas Beach Resort, Melia Llana Beach Hotel, Melia Laguna Beach Resort and Sol Dunas. The great news is that these are for the same levels of allotments of rooms and guaranteed price increases as originally secured with TUI under the former exclusive long-term agreements.

NORDIC LEISURE TRAVEL GROUP (NLTG)

This has been a hugely successful partnership for some years but has expanded significantly. New contracts were signed for NLTG to take 200 rooms of the 300 on Laguna Beach Resort from Winter this year and 100 rooms on Melia Sol Dunas Family Fun as well as further additions to their contracts for rooms on Tortuga, Dunas and Llana. The Scandinavian market has grown every year and as the leading tour Operator NLTG is

at the forefront of that growth.

EASYJET

The introduction of easyJet to the Cape Verde Market is without question an absolute game changer for our business and indeed the country. They started at the end of March this year with three flights a week from London Gatwick to Sal and then launched a further three flights from Manchester to Sal from the beginning of November this year. Further flights will start next March from the UK while retaining all the existing flights. When you add to that the 6 easyJet flights a week into Sal from Lisbon and Porto, it is clear that easyJet intend to be a major player. Indeed, at a press conference in Cape Verde earlier this year, they

announced several additional flights into Boa Vista, Sao Vicente and Sal, including a direct flight from Milan into Sal. With 80% of all easyJet Holidays customers bookings being directed to the Lagoon Resort hotels, this is a very important partnership.