“The whole difference between construction and creation is exactly this: that a thing constructed can only be loved after it is constructed; but a thing created is loved before it exists.” - Charles Dickens

BLUE MARLIN

REVAMPING A LEGEND

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The Blue Marlin wasunquestionably one of the South

Coast’s most magnificent & iconic hotels which has been a

family destination & beachplayground for past generations. We are aiming to upgrade the

grand dame to once again become the Pearl of the South

Coast.

We are pleased to announce that fromSeptember 2013 your timeshare with us will undergo major refurbishment and structural upgrades. This multi-million-rand project,covering both the inside and outside of the Hotel, will be completed in three phases. We are breaking the refurbishment into three phases which will be phased throughout 2013, 2014 & 2015. The intention is to keep the phases segregated as far as possible to not inconvenience or disturb the runningof the hotel throughout the construction.

Our intention is to tackle the majority of the common areas in September 2013 through to early December 2013. This invigorating project will include a re-paint of the exterior of the building, a new entrance, reception, lounge, bar, dining room & kitchen as well as the outside pool area. All owners over this period have been contacted to make alternative arrangements for their week. Owners can either utilise another week within the Blue Marlin (subject to availability) or space-bank their week with RCI and make use of their exchange portfolio.

Phase 1

We are pleased to announce that fromSeptember 2013 your timeshare with us will undergo major refurbishment and structural upgrades. This multi-million-rand project,covering both the inside and outside of the Hotel, will be completed in three phases. We are breaking the refurbishment into three phases which will be phased throughout 2013, 2014 & 2015. The intention is to keep the phases segregated as far as possible to not inconvenience or disturb the runningof the hotel throughout the construction.

Our intention is to tackle the majority of the common areas in September 2013 through to early December 2013. This invigorating project will include a re-paint of the exterior of the building, a new entrance, reception, lounge, bar, dining room & kitchen as well as the outside pool area. All owners over this period have been contacted to make alternative arrangements for their week. Owners can either utilise another week within the Blue Marlin (subject to availability) or space-bank their week with RCI and make use of their exchange portfolio.

Bar, dining room, lounge & pool area refurbishment

During phase 1 of the revamp, the hotel will need to be closed as all the common areas will be affected. It is our intention to do all the common areas as part of phase 1 so as not to affect these areas again and avoid the need to close the hotel for a period of time. It is envisaged that only phase 1 will see the closure of the hotel.

Some highlights of phase 1 will be as follows:

• The opening up of the common areas to create an open-plan lounge & bar area integrating this living space which will overflow onto a new timber deck hugging the hotel exterior;

• The bar area is being designed as an all-day bar where morning cappuccinos, mid-day refresher or evening cocktails can be ordered from;

• An upgrade of the restaurant area with refurbished flooring, new stacking doors opening onto the outside deck. The restaurant will also have lifted floors & dropped ceilings creating separate dining areas within a free-flowing communal atmosphere;

• The games room will be upgraded with the latest kids’ activities and moved into the old Lang-dale conference room behind the current Zulu Bar – however this will be separated to reduce disturbance but adjoining the new open-plan lounge area so parents can keep a watchful eye out;

• With the conversion of certain old offices, a “cigar-bar” library type lounge area will also be created for those wanting to relax in peace & quiet;

• The kitchen will also be undergoing a revamp with new equipment where necessary & a more efficient layout. This will also spark the launch of our new menus;

• The pool area will be repaved & re-mosaicked with new landscaped gardens including new pool loungers & umbrellas;

• All the common areas will get new furniture throughout and where possible the interior designers are making use of the existing furniture and having it revamped to tie in with the new theme of the hotel.

• The opening up of the common areas to create an open-plan lounge & bar area integrating this living space which will overflow onto a new timber deck hugging the hotel exterior;

• The bar area is being designed as an all-day bar where morning cappuccinos, mid-day refresher or evening cocktails can be ordered from;

• An upgrade of the restaurant area with refurbished flooring, new stacking doors opening onto the outside deck. The restaurant will also have lifted floors & dropped ceilings creating separate dining areas within a free-flowing communal atmosphere;

• The games room will be upgraded with the latest kids’ activities and moved into the old Lang-dale conference room behind the current Zulu Bar – however this will be separated to reduce disturbance but adjoining the new open-plan lounge area so parents can keep a watchful eye out;

• With the conversion of certain old offices, a “cigar-bar” library type lounge area will also be created for those wanting to relax in peace & quiet;

• The kitchen will also be undergoing a revamp with new equipment where necessary & a more efficient layout. This will also spark the launch of our new menus;

• The pool area will be repaved & re-mosaicked with new landscaped gardens including new pool loungers & umbrellas;

• All the common areas will get new furniture throughout and where possible the interior designers are making use of the existing furniture and having it revamped to tie in with the new theme of the hotel.

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Entrance & Reception areaAlso as part of phase 1 is the upgrade of the entrance & reception area. This will include some cladded walls in the car-park to screen the hotel’s back-end operations. A timber deck will be laid from the car-park to the entrance which will have new landscaped gardens creating that ever-important first impres-sions! The old bar, shop & tourism office will all be opened-up to create a flex-ible space that will originate a much friendlier welcome. The reception area will have a coffee shop that will boast a fun, relaxed atmosphere for its customers with aromas of coffee floating in the air. This will open onto the new timber walkway & landscaped gardens on the hotel entrance. It will include a small internet café and free wi-fi for all guests. There will also be a small convenience shop located adjacent the reception. The new reception will include a disabled-friendly lift for access to all levels of the hotel. The old Indaba room will be converted into a Spa treatment facility which will offer a variety of health and beauty enhancing treatments to ensure that our guests are nurtured, purified, pampered and relaxed

Phase 1 of the construction will be funded from existing reserves within the Share Block Company and the balance from the Hotel operation.

Entrance & Reception areaAlso as part of phase 1 is the upgrade of the entrance & reception area. This will include some cladded walls in the car-park to screen the hotel’s back-end operations. A timber deck will be laid from the car-park to the entrance which will have new landscaped gardens creating that ever-important first impres-sions! The old bar, shop & tourism office will all be opened-up to create a flex-ible space that will originate a much friendlier welcome. The reception area will have a coffee shop that will boast a fun, relaxed atmosphere for its customers with aromas of coffee floating in the air. This will open onto the new timber walkway & landscaped gardens on the hotel entrance. It will include a small internet café and free wi-fi for all guests. There will also be a small convenience shop located adjacent the reception. The new reception will include a disabled-friendly lift for access to all levels of the hotel. The old Indaba room will be converted into a Spa treatment facility which will offer a variety of health and beauty enhancing treatments to ensure that our guests are nurtured, purified, pampered and relaxed

Phase 1 of the construction will be funded from existing reserves within the Share Block Company and the balance from the Hotel operation.

Phase 2 & 3 is aimed at the upgrading of the rooms throughout the hotel. This project will see a full room refurbishment including new bathrooms. It will include the redecoration of doors, artwork, lighting with bulk heads, bed-room carpets, built in cupboards, new furniture, dressing tables, curtains, TV’s, bathroom refurbishment with complete new plumbing throughout the rooms - new feature walls and mirrors, plug points and switches and fresh paint throughout the unit.

The results will be that of a fresh new luxurious seaside haven. The Blue Marlin Resort will become the most sought after coastal retreat on KZN-South Coast and even more desirable. On top of that, once the work is complete, the exchange value of your timeshare will increase, giving you better leverage to get the vacation exchanges you want.

A special levy will need to be raised for phase 2 & 3 in order to fund the refurbishment. It was proposed at the last Board Meeting held on 15 be raised in 2014 and a further R2,500 in 2015. The special levy is required in order to cover the difference between the current replacement reserve and the cost of the refurbishment.

The board decided to split the special levy over a two year period to relieve the members of the financial burden of a once off special levy of R5, 000.

Phase 2 & 3

When will the special levy be raised?The proposed special levy for 2014 + 2015 is as follows

R2,500 (incl. VAT) – Double Room for 2014 & 2015R3,085 (incl. VAT) – Family Room for 2014 & 2015

The special levy will be raised in two instalments during 2014 & 2015. The first special levy of R2,500 & R3,085 (Incl. VAT) *respectively for double and family rooms. will be raised 01 January 2014. Please note that it is inaddition to the normal annual levy. This will be payable over a six (6) month period and needs to befully settled by 30 June 2014.

The second special levy of R2,500 & R3,085 (Incl. VAT) *respectively for double and family rooms. will be raisedon 01 January 2015. Please note that it is in addition to the normal annual levy. This will be payable over asix (6) month period and needs to be fully settled by 30 June 2015.

Will a special levy be raised?The special levy needs to be agreed at the AGM on Wednesday 18th September 2013 to go ahead withthe proposal to renovate the hotel would also include the need to raise a special levy. The Board of Directorsagreed in principle to the special levy as outlined, and the proposal will be tabled at this year’s AGM.

Why is the resort being refurbished?Your timeshare is a lifetime asset that has to be well maintained to keep its value high. The purposeof the refurbishment is two fold. Firstly, it is to bring the interior finishes into line with contemporary standards of a new destination and restyle the units in a modern design. Secondly, as with any seaside retreat, the resort’s infrastructure and façade is exposed to the continuous strain of general wear and tear. These factors make it necessary for us to conduct periodic repairs and upgrades.In this regard, we are undertaking a comprehensive overhaul of the electrical & plumbing reticulation, roof and telephone systems to ensure excellent performance and our full compliance with national regulations. As you know, a stand-by electricity generator has already been installed.

What is the refurbishment plan?Phase 1 - to commence on the Monday 23rd September 2013 and be completed by Sunday 8thDecember 2013.

Phase 2 – to commence after the July school holidays in late July 2014 and be completed prior to theSpring School Holidays in September 2014.

Phase 3 – to commence after the July school holidays in late July 2014 and be completed prior to the Spring School Holidays in September 2014.

What is the normal annual levy for 2014?The annual levy is payable as per the use agreement, with the timing detailedon the levy statement.

R1,495 (incl. VAT) – Double Room – a proposed 5% increaseR1,850 (Incl. VAT) – Family Room – a proposed 5% increase

Approx. 2014 Annual Levy:

General NotesKindly note the following:

• Full and final special levy payments must be made by 30th June 2014 & 2015respectively. Occupation will have to be denied if the special levy is outstandingthereafter.

• The special levy has to be paid in full prior to transfer taking place to a new owner.

Where should payments be made?• The annual and special levy may be paid at:

• Via credit card (see the back of your levy statement)• Directly into the Blue Marlin Share Block Levy account at:

FNBCurrent Account

Branch - ScottburghBlue Marlin Hotel Share Block Limited

Account No. 53640021192

For queries, please contact either Mellini or Malthee at the Hotel on 039 978 3361 or email timeshare@bluemarlin.co.za

BLUE MARLIN