The board of directors of Sim Leisure Group Ltd. refers to the company's announcement dated 4 February 2020 in relation to the non-binding memorandum of understanding entered into by the Company and Elpitiya Plantations PLC (Elpitiya) to develop and operate theme parks under the "ESCAPE" brand in Sri Lanka ("ESCAPE Sri Lanka"). Further to the Announcement, the Board wishes to announce that, on 13 April 2020, the company entered into a definitive shareholder agreement (the "SHA") with Elpitiya and Venture Valley (Pvt) Limited, in relation to the share capital and operations of Venture Valley as a strategic joint venture company between the Company and Elpitiya in connection with ESCAPE Sri Lanka (the "Joint Venture"). The SHA sets out certain key terms and conditions regulating (i) the affairs of Venture Valley, such as the management and control of Venture Valley, as well as the rights and obligations of the shareholders of Venture Valley; and (ii) the operations and conduct of the Joint Venture Business .

Venture Valley has not commenced commercial operations and Elpitiya is currently the sole shareholder of Venture Valley. Venture Valley was established for the purposes of developing and operating ESCAPE Sri Lanka ("Joint Venture Business"). Pursuant to the SHA, Elpitiya will sublease a plot of land to Venture Valley and Venture Valley will construct and operate ESCAPE Sri Lanka under the Company's expertise.

Construction of Phase 1 of ESCAPE Sri Lanka on 30 acres of land will commence in Fiscal year 2020, targeting for opening to the public at the beginning of fiscal year 2021.