The Company's 2016 12-month net turnover is 2 750 528 EUR, it has fallen by 43% compared to 2015 12-month period. In 2016 12 months were sold 131,356 mink skins at an average price of 20,17 EUR / pc ., but in 2015 12 months were sold 113,521 mink skins for average price 39,41 EUR / pcs. Although in 2016 the JSC "Grobina" mink average sales price in Finnish mink auction house exceeded the average auction sales price, however, due to the fur industry crisis in the world, JSC Grobina" in 2016 12 months realized production below cost and the company has suffered a loss. In order to obtain financial stability in the 29 June 2016 by decision of Liepaja court there was approved the Legal protection process action plan of JSC "Grobina", which provides that payment with creditors will be settled in 2018. In spite of the JSC "Grobina" legal protection process, management of company made agreement with Finish auction house Saga Furs of funding for fur breeding for the growing season of 2016i, this allows to the company in the period of legal protection proceedings to make normal economic activity in accordance with the established legal protection proceedings plan.

Correction: In attachment we are publishing correct redaction of  JSC “Grobina” audited financial statement of 2016, which is signed by the board of the company. Changes are made in these chapters of annual report:

1. Profit or losses statement (changes in position Costs for goods sold.

2. Balance sheet, assets:

2.1. Fixed assets, position Draft animals or productive animals;

2.2. Non- current financial investments- Deferred tax assets;

2.3. Inventories positions Finished goods and goods for sale, as well Animals and annual plantings.

2.4. Position Other receivables.

3. Balance sheet, equity:

3.1. In non- current liabilities 2 positions:- Loans from banks and Taxes and state social insurance payments;

3.2. In current liabilities 4 positions: Loans from banks, Other borrowings, Trade payables, Taxes and state social insurance payments.

4. Cash flow statement, 4 positions:

4.1. Depreciation and impairment of fixed assets;

4.2. Increase or decrease of account receivable;

4.3. Increase or decrease of inventory;

4.4. Increase or decrease of payables and other liabilities.

5. Statement of changes in equity, in position Current year profit or losses (closing baance 31.12.2016).

6. Costs of goods sold, 2 positions: Sold mink skins production prime costs and adjustments.

7. Interest and similar expenses- position Penalties paid.

8. Inventories 2 positions- Mink skins and Animals and annual plantings.

9. Other receivables- position Tax receivables and tax prepayments.

10. Loans from banks- changed long term and short term positions.

11. Other borrowings- position Financial lease commitments.

12. Deferred tax- position Deferred tax expense (income) statement of profit or loss.

In addition, based on regulations of Nasdaq Riga “About including financial instruments and trade in auction house regulated markets” and requirements on article 14.8.4., JSC “Grobina” is explaining, that comparing audited financial statement of 2016 with the JSC "Grobina" previously expressed prognoses preparing non audited financial statement of 2016, on relation to the planned amount of losses the difference is detectable more than 10%.The reason of it is because it was not properly booked advanced payments from auction house Saga Furs and sales revenues.

         JSC "Grobina"
         chairman of the board
         Gundars Jaunsleinis