GALS Development : RELEASE dd 18/04/2017 (THE BOARD OF DIRECTORS RESOLUTIONS)

MOSCOW, RUSSIA - April 18, 2017 - HALS-Development (LSE, MICEX: HALS), a major Russian real estate Company, announces the Board of Directors resolutions passed at the meeting on 17thof April 2017 (Minutes № 8 dated April 17, 2017).

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

Resolutions:

1. To include the following candidates proposed by the shareholders holding at least 2% of the voting shares of the Company in the list of candidatures for vote during election of the Board of directors of Hals-Development PJSC on the annual General meeting of the shareholders of the Company held in 2017:

   • Moos Gerbert;

   • Sugachenko Vasiliy Nikolaevich;

   • Adamov Viktor Evgenyevich

   • Luginin Andrey Viktorovich;

   • Lapin Konstanin Vitalevich;

   • Puchkov Andrey Sergeevich;

   • Mukhin Andrey Anatolevich.

     Voting results:

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

2. To include the following candidates proposed by the shareholders holding at least 2% of the voting shares of the Company in the list of candidatures for vote during election of the Audit Commission of Hals-Development PJSC on the annual General meeting of the shareholders of the Company held in 2017:

• Zuev Ivan Nikolaevich;

• Knizhnikov Mikhail Yurevich;

• Kochura Valery Valerevich.

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") and the residential complex "Dostoyanie".

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

***

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.