Macquarie Korea Infrastructure Fund : Court ruling on Soojungsan Tunnel on overdue payment claim

Macquarie Korea Infrastructure Fund

9thFloor Hanwha Bldg Telephone [phone]

109 Sogong-ro, Jung-gu Facsimile (82 2) 3705 8596

Seoul 04525 Internet http://www.macquarie.com/mkif Korea

10 November 2016

MACQUARIE KOREA INFRASTRUCTURE FUND

court ruling on soojungsan tunnel on overdue payment claim

The Busan District Court has ruled in favour of Soojungsan Investment Co., Ltd., the concessionaire of Soojungsan Tunnel (the "Company" or "SICL") regarding the lawsuit that the Company filed to claim overdue support payment from Busan Metropolitan City (the "Overdue Payment")1. As previously disclosed by Macquarie Korea Infrastructure Fund ("MKIF") on 6 January 20162, the Company filed a lawsuit to claim the Overdue Payments of KRW 4.7 billion3(includes a minimum revenue support and toll freeze compensation), which represents 8% of the total support payment amount incurred over five years from 2011 to 2015.4

SICL, 25-year concession toll tunnels, has been in operation since April 2002. SICL represents 5.0% of MKIF's portfolio on a committed amount basis.5

For further information, please contact:

Jason Pak

Chief Operating Officer

Macquarie Korea Infrastructure Fund

+ 82 2 3705 8550

[e-mail]

Ally An

Investor Relations

Macquarie Korea Infrastructure Fund

+ 82 2 3705 8565

[e-mail]

This release is not an offer or solicitation for sale of the securities of Macquarie Korea Infrastructure Fund ('MKIF') in the United States or in any jurisdiction where any offer, sale or solicitation in respect of such securities is not permitted. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the

U.S. Securities Act of 1933, as amended (the "Securities Act"), or in any jurisdiction where such offer or sale is not permitted. The securities of MKIF have not been registered under the Securities Act, and may not be offered or sold in the United States absent registration or exemption from registration under the Securities Act. There will be no public offer of the securities in the United States.

Not for distribution in the United States or in any jurisdiction where any offer, sale or solicitation in respect of the contemplated securities is not permitted.

This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Market Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). Any securities will only be available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire any securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

1. The Court has ordered Busan Metropolitan City to make a full payment of the Overdue Payment and a partial payment of the interest accrued on the Overdue Payment

2. Baekyang Tunnel (BYTL) and SICL filed law suits respectively to claim the overdue payment of each company. The court process for BYTL is separately underway - Busan District Court ruled against BYTL and BYTL appealed the case to Busan High Court in October 2016

3. On 19 May 2016, the Company filed an application to amend the cause of the claim adding the overdue support payment of KRW 953 million for 2015 that was not included in the first filing of the case

4. The Overdue Payment amount does not include deferred interest

5. MKIF commitment (Equity - KRW 47.1 billion, Subordinated loan - KRW 16.9 billion and Senior loan - KRW 16.2 billion)

This release does not take into account the investment objectives, financial situation and particular needs of the investor. Before making an investment in MKIF, the investor or prospective investor should consider whether such an investment is appropriate to their particular investment needs, objectives and financial circumstances and consult an investment adviser if necessary.

MKIF or Macquarie Korea Asset Management Co., Ltd.(MKAM) is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of this entity do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities.

Investments in MKIF are subject to investment risk, including possible delays in repayment or loss of income and/or capital investment. Neither MKIF, nor any member of the Macquarie Group companies, including MKAM, guarantees the performance of MKIF, the repayment of capital or the payment of a particular rate of return on MKIF securities.

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