An anonymous trustee reports

LANESBOROUGH REIT CLOSES SALE OF TWO PROPERTIES

Lanesborough Real Estate Investment Trust has completed the sale of:

1. Nelson Ridge Estates, 101 Loutit Rd., Fort McMurray, Alta., to 7254751 Manitoba Ltd. (725), pursuant to the terms of a purchase agreement, for aggregate consideration of $22-million plus an increase in the line of credit from 2668921 Manitoba Ltd. (266), a sister company of 725, to Lanesborough in the approximate amount of $22,754 less closing adjustments in the approximate amount of $295,994, paid as follows: (i) a $20,000 cash deposit paid to Lanesborough; (ii) through the assumption of the first mortgage on the Nelson Ridge property by 725 in the net approximate amount of $14,040,646; and (iii) $7,666,114 through the assumption of the second mortgage on the Nelson Ridge property by 725;
2. Parsons Landing, 350 Parsons Creek Dr., Fort McMurray, Alta., to 725, pursuant to the terms of a purchase agreement, for aggregate consideration of $22-million plus an increase in the line of credit from 266 in the approximate amount of $13,889,406 less closing adjustments in the approximate amount of $245,118, paid as follows: (i) a $20,000 cash deposit paid to Lanesborough; (ii) $35,301,788 through the assumption of the mortgage on the Parsons property by 725; and (iii) a credit to 725 in the amount of $322,500, representing 50 per cent of the deficiencies noted in a property condition assessment (collectively, the Parsons transaction and together with the Nelson Ridge transaction, the transactions).

725 is a company controlled by an insider of Lanesborough. Accordingly, the transactions are each a related party transaction under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions.

As Lanesborough is not listed on the Toronto Stock Exchange, in accordance with Section 5.5(b) of MI 61-101, each of the transactions is exempt from the formal valuation requirements of MI 61-101. As Lanesborough is experiencing financial hardship, as defined in Section 5.5(g) of MI 61-101, Lanesborough is also exempt from the requirement to obtain approval of a majority of the minority unitholders of Lanesborough for each of the transactions.

About Lanesborough Real Estate Investment Trust

Lanesborough is a real estate investment trust, which is listed on the TSX Venture Exchange under the symbol LRT.UN.

We seek Safe Harbor.