GALS Development : PRESS RELEASE DD 02/08/2017 (THE BOARD OF DIRECTORS RESOLUTIONS)

THE BOARD OF DIRECTORS RESOLUTIONS

MOSCOW, RUSSIA - August 02, 2017 - HALS-Development (LSE, MICEX: HALS), a major Russian real estate Company, announces the Board of Directors resolutions passed at the meeting on 02 of August 2017 (Minutes №1 dated August 02, 2017).

7 members of 7 elected members of the Board of Directors have participated at the meeting. There was a quorum on the agenda.

Resolutions:

1. To elect Mr. Puchkov Andrey Sergeevich as the Chairman of the Board of directors of PJSC HALS- Development.

   Voting results:

   "FOR" - 7 votes; "AGAINST" - 0 votes; "ABSTAINED" - 0 votes.

2. To determinate the amount of payment for services of the auditor of book-keeping (financial) report of HALS-Development PJSC for 2017 made according to RAS - Joint-Stock Company Energy Consulting (main state registration number: 1047717034640) - in the amount of 1 082 988 RUR, including VAT.

   Voting results:

   "FOR" - 7 votes; "AGAINST" - 0 votes; "ABSTAINED" - 0 votes.

3. To determinate the amount of payment for services of the auditor of consolidated financial report of HALS-Development PJSC for 2017 made according to IFRS - ERNST & YOUNG LLC (main state registration number: 1027739707203) - in the amount of 20,600,000 RUR excluding VAT. Voting results:

"FOR" - 7 votes; "AGAINST" - 0 votes; "ABSTAINED" - 0 votes.

The Company was the first Russian property developer to list its shares on the main market of the London Stock Exchange. The Company's shares are also listed on the Moscow Exchange.

The company is in the top five of the largest developers in Moscow. The total value of development projects of HALS- Development is 1.6-mil sq.m. In 2016 the Company put into operation 4 projects with total area 300 thousand sq.m.: the first phase of construction of the business class residential premises of "Nasledie"; "Wine House"; "Peking Gardens"; "IQ-Quarter" residential block (MMDC "Moscow-City").

The total value of currently developing projects by HALS-Development is about 800 thousands sq.m. Hals- Development is currently developing such projects as development of the second phase construction of the business class residential premises of "Nasledie"; multifunctional complex "Iskra-Park", non-residential towers of "IQ- Quarter" (MMDC "Moscow-City"), the residential complex "Dostoyanie", the luxury residential premises "Taetralniy Dom".

The Company's portfolio includes such existing facilities as the business centers SkyLight, "Danilovsky Fort", hotel "Beijing", the shopping and entertainment complex "CDM at Lubyanka", resort complex "Camellia" in Sochi and other objects in Moscow and regions.

Elizaveta Bekreneva Corporate Secretary

Tel. +7 (495) 589-2222 (ext. 1338)

bekreneva@hals-development.ru

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The information in the press release may contain forward-looking statements regarding future events or the future financial performance of Hals-Development. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could", "may" or "might" the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and those actual events or

results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date thereof or to reflect the occurrence of unanticipated events.