UNION FLACQ LTD

Cautionary Announcement

The Board of Directors of Union Flacq Ltd (“UFL”) wishes to inform its shareholders and the public at large that, subject to the approval of the relevant authorities and of its shareholders, UFL intends to proceed with a share split and a bonus issue which will be conducted in the following manner:

(i) the passing of an ordinary resolution to the effect that each of the one hundred and sixty seven thousand five hundred and sixteen (167,516) fully paid up ordinary shares constituting the stated capital of UFL be and is hereby, in conformity with Section 53(a) of The Companies Act 2001, subdivided into twenty (20) ordinary shares; followed by

(ii) a bonus issue of 127,312,160 ordinary shares in the ratio of thirty eight (38) new ordinary shares for every one (1) ordinary share held (38:1).

Shareholders of UFL and the investing public are advised to exercise caution when dealing in the shares of UFL.

By Order of the Board

GML Services Financiers et Juridiques Ltée

Secretary

Date: July 5, 2007

This Cautionary Announcement is issued pursuant to DEM Rule 21.

The Board of Directors of Union Flacq Ltd accepts full responsibility for the information contained in this Cautionary Announcement.