EEA Life Settlements Fund PCC Limited (the Fund) has issued the following Shareholder update on the US Proceedings instigated by Coventry.

1. What has prompted the US proceedings in Coventry Capital US LLC v EEA Life Settlements Inc., & others(the US Proceedings)?

The US Proceedings relate to a failed negotiation in 2017 between EEA Life Settlements Inc. (EEA Inc.) and Coventry Capital US LLC (Coventry), for the sale of portfolio of investments in life insurance policies. The parties entered into a letter of intent, under which they agreed to negotiate further in good faith to explore a potential sale. A final agreement was never reached.

In September 2017, after negotiations broke down, Coventry filed a complaint against EEA Inc. and Vincent Piscaer and Hiren Patel (together, the Defendants) alleging that the Defendants engaged in a pattern of conduct that undermined the negotiations with Coventry. The Defendants deny the allegations made against them.

None of the Fund, EEA Fund Management (Guernsey) Limited (the Manager) or EEA Fund Management Limited (the Marketing Agent) are parties to the litigation.

2. What is the current status of US Proceedings.

The US Proceedings are currently at the discovery stage, which is not yet complete.

3. How is legal defence of the various EEA entities being paid?

As explained at 1 above, the Fund, the Manager and the Marketing Agent are not defendants in the US Proceedings and are not the subject of any allegations of wrongdoing by Coventry.

EEA Inc. has successfully been claiming recovery of its legal defence costs under applicable insurance policies, under which the Fund is also an insured party. The Manager and the Marketing Agent have also successfully claimed recovery of some legal costs that they have incurred as non-parties under (different) applicable insurance policies, and to the extent that their costs have been incurred in producing documents to EEA Inc. to assist EEA Inc.’s defence of the litigation, those costs are indemnified by EEA Inc.

4. What protection do EEA shareholders have for loss of policies if the defence fails in the US Proceedings?

Coventry is seeking damages and/or an order that EEA Inc. be required to sell (to Coventry) some or all of the Fund’s portfolio of policies. In either event, unless coverage by any applicable insurance policies is available, that order would be met out of the assets of EEA Inc.

Whilst not a party to the US Proceedings, the Fund continues to take those steps which it believes to be most appropriate in the circumstances to protect the interests of its investors.

The Fund will continue to keep its investors updated, where and to the extent it is appropriate to do so, with relevant information on the US Proceedings. If shareholders have specific queries in relation to the US Proceedings they are asked to contact the Fund by email at eea@saffery.gg.