TORONTO, June 11, 2013 /CNW/ – Midland Resources Holding Limited (“Midland“) announced today that it has acquired pursuant to a private agreement
6,118,703 common shares of Holloway Lodging Corporation (“Holloway“) (TSX: HLC) at an average price of $3.525 per share, representing
approximately 34.1% of the issued and outstanding common shares of
Holloway. After giving effect to this purchase, Midland now owns an
aggregate of 6,231,194 common shares, representing approximately 34.7%
of the issued and outstanding Holloway common shares. Midland is
holding the shares referred to above on behalf of 2119895 Ontario Limited. Midland and 2119895 Ontario Limited are
beneficially owned by Mr. Alex Shnaider and his family.

Additionally, Mr. Neil Labatte, who is acting jointly or in concert
(within the meaning of applicable Canadian securities legislation) with
Midland, acquired pursuant to a private agreement 113,485 common shares
of Holloway at an average price of $3.525 per share, representing
approximately 0.6% of the issued and outstanding common shares of
Holloway.

As a result these acquisitions, Midland and Mr. Labatte, together,
currently own 6,344,679 common shares of Holloway, representing
approximately 35.4% of the issued and outstanding common shares of
Holloway.

Each of Midland and Mr. Labatte acquired the common shares of Holloway
for investment purposes and may, from time to time on an individual or
joint basis, acquire additional securities of Holloway, dispose of some
or all of the existing or additional securities it holds or will hold,
or may continue to hold its current position. Subject to applicable
law, Midland and/or Mr. Labatte may from time to time have discussions
with other securityholders of Holloway and its board of directors and
management regarding Holloway, its prospects and potential means for
enhancing shareholder value, including without limitation, with respect
to potential changes in the business, assets, strategy or board
composition of Holloway. Midland and/or Mr. Labatte may also from time
to time initiate or participate in such other actions as it considers
necessary to seek to enhance shareholder value at Holloway, including
without limitation, actions intended to cause changes to the business,
assets, strategy or board composition of Holloway.

In purchasing the Holloway common shares acquired earlier today and
referred to above, each of Midland and Mr. Labatte relied on the
private agreement exemption from the formal take-over bid rules set out
in section 100.1(1) of the Securities Act (Ontario). They were entitled to rely on this exemption because (i) the
purchase of the Holloway common shares was not made from more than five
persons, (ii) the offer to purchase was not made generally to all
holders of Holloway’s common shares, and (iii) the value of the
consideration paid for the Holloway common shares, including brokerage
fees or commissions, was not greater than 115% of the market price of
Holloway’s common shares on the Toronto Stock Exchange, as determined
in accordance with section 1.3 of OSC Rule 62-504 ― Take-Over Bids and Issuer Bids.

SOURCE Midland Resources Holding Limited