Meeting of Creditors

Notice of 2006 CULS Court Meeting

In the Court of Session, Scotland

HALLADALE GROUP PLC

(registered number SC134255)

Notice is hereby given that by an Order pronounced by The Honourable Lord Reed on 22 February 2007, in a Petition at the Court of Session, Edinburgh by Halladale Group plc (the “Company”) for sanction of a scheme of arrangement (the “Scheme”) and confirmation of a reduction of capital, the Court ordered the Company to summon and hold a meeting of the 2006 CULS Holders (as defined in the Scheme and as set out below) for the purpose of considering and, if thought fit, approving (with or without modification) Part 3 of the Scheme pursuant to Section 425 of the Companies Act 1985. That Meeting will be held at the offices of Eversheds LLP at Senator House, 85 Queen Victoria Street, London EC4V 4JL on 22 March 2007 at 2.30 pm, at which place and time all 2006 CULS Holders are requested to attend.

The 2006 CULS Holders are the holders of the £15,000,000 5.25 per cent unsecured convertible loan stock in the Company, constituted by a deed dated 16 June 2006 (the “2006 CULS”).

A circular containing a copy of the Scheme and a copy of the statement explaining the effect of the Scheme, required to be furnished pursuant to section 426 of the Companies Act 1985, together with the form of proxy for use at the meeting, will be posted to 2006 CULS Holders, whose names are entered into the register of 2006 CULS Holders of the Company (the “2006 CULS Register”) as at 6.00 pm on 26 February 2007. Copies of these documents are available on request from the Company’s Registrars, Capita Registrars at The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU.

2006 CULS Holders entitled to attend and vote at the meeting may vote in person at the meeting or they may appoint another person as their proxy to attend and vote in their stead. A proxy need not be a 2006 CULS Holder. A yellow form of proxy for use at the meeting is enclosed with the circular posted as described above. Completion and return of a form of proxy will not preclude a 2006 CULS Holder from attending and voting in person at the meeting, or any adjournment thereof, if he or she wishes to do so.

Forms of proxy should be completed and signed in accordance with the instructions printed on them and then lodged with the Company’s Registrars, Capita Registrars, either using the reply-paid service provided on the proxy card or alternatively by hand (during normal business hours only) at The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU, as soon as possible and, in any event, not later than 2.30 pm on 20 March 2007 or, if the meeting is adjourned, not later than 48 hours before the time of the adjourned meeting. If forms are not so lodged, they may be handed before the start of the meeting (including any adjourned meeting) to the Company’s Registrars on behalf of the Chairman at the meeting.

In the case of joint holders, the vote of the senior holder who tenders a vote, whether in person or by proxy, will be accepted to the exclusion of the vote(s) of the other joint holder(s) and for this purpose seniority will be determined by the order in which the names stand in the 2006 CULS Register in respect of the relevant joint holding.

Entitlement to attend and vote at the meeting or any adjournment thereof and the number of votes which a 2006 CULS Holder may cast thereat, will be determined by reference to the 2006 CULS Register as at 6.00 pm on 20 March 2007 or, if the meeting is adjourned, 6.00 pm on the day which is two days before the date of the adjourned meeting. In each case, changes to the 2006 CULS Register after that time will be disregarded. Voting on the resolution will be by poll.

For a meeting to be properly held, a quorum of one 2006 CULS Holder holding or representing more than 50% in nominal amount of the 2006 CULS must be present in person or by proxy and entitled to vote on the resolution to be proposed.

By the said Order of Lord Reed dated 22 February 2007, the Court has appointed A C Shedden, or failing him, David Lockhart, or failing him, Kenneth Lindsay, or failing him, Mark Harkin, or failing him, Simon Taylor to act as chairman of the meeting and has directed the chairman to report the result of the meeting to the Court.

The Scheme will be subject to the subsequent sanction of the Court.

McGrigors LLP

Princes Exchange, 1 Earl Grey Street, Edinburgh EH3 9AQ.

Solicitors for the Company.

27 February 2007.