Dexion Absolute Limited (in Voluntary Liquidation) (the "Company")

    Shareholder Update

    Pursuant to the Company's circular to shareholders dated 26 February 2016 ("the
    Circular"), on 23 March 2016, Linda Maree Johnson and Ashley Charles Paxton
    were appointed as the Joint Liquidators ("the Liquidators��&#
    65533;) of the Company.

    In respect of the Company's shareholding in Aurora Offshore Fund II Limited
    ("AOFL II"), the Company's main investment position, a full redemption request
    was duly submitted on behalf of the Company by the appropriate agent.

    Redemption Profile

    On 6 May 2016, the Liquidators received a shareholder communication from AOFL
    II's investment advisor, Aurora Investment Management L.L.C. ("the Investment
    Advisor"), notifying shareholders of AOFL II that voluntary redemptions had
    been suspended, including redemptions that had been requested for future
    redemption dates. The Investment Advisor further noted that AOFL II would
    return capital to its shareholders pursuant to a single schedule regardless of
    whether or not a shareholder had previously submitted a redemption request.  As
    noted above, a redemption request had previously been duly submitted on behalf
    of the Company.

    This has resulted in a change to the Company's redemption profile with respect
    to AOFL II and will, therefore, have a direct impact as to the quantum and
    timing of the Company's planned distributions to its shareholders, as had been
    originally outlined in the Circular.

    As such rather than receiving the full redemption proceeds from AOFL II, as was
    envisaged per the Circular, the Liquidators understand from the Investment
    Advisor that the Company will receive approximately 60% of the net asset value
    ("NAV") of the Company's investment in AOFL II during August 2016 - this is
    currently estimated to be in the region of USD 70m. The Company expects to
    receive further balances in respect of its holdings in AOFL II during 2017.

    The Liquidators have taken formal legal advice with respect to the position
    taken by the Investment Advisor with regard to the full redemption request
    submitted by the Company prior to the suspension of voluntary redemptions.
    Further to that advice, the Liquidators understand that they are not in a
    position to challenge the actions of the Investment Advisor and, as a result,
    are obliged to follow the distribution schedule adopted by the Investment
    Advisor.

    Hedging

    As shareholders are aware, the Company operates a single Sterling denominated
    share class, whilst the Company's investment in AOFL II is designated in US
    Dollars. The Company has historically maintained a Sterling/US Dollar hedge
    with respect to its holding in AOFL II.

    The functions of a liquidator are restricted to the realisation of the estate
    assets and the distribution of the proceeds of those realisations to the
    entity's stakeholders.  The liquidator is therefore precluded from adopting a
    speculative position, including the commissioning of a financial hedging
    instrument.

    Accordingly, the Liquidators wish to inform the Company's shareholders that the
    current hedge will be concluded on 29 July 2016, after which point shareholders
    should look to obtain their own hedging coverage should they wish to continue
    to hedge their own individual exposure against the estimated USD 70m due in
    August 2016 and the subsequent balances expected in 2017.

    Interim Liquidation Distribution

    Upon receipt of the first distribution made by AOFL II during August 2016, the
    Liquidators will make an immediate interim liquidation distribution to the
    Company's shareholders. Following this first interim liquidation distribution,
    the Liquidators will further assess the Investment Advisors' proposed
    distribution schedule before making further distributions to ensure that the
    costs of making distributions are minimised.

    A further shareholder announcement will be made once the timing and amount of
    the first interim liquidation distribution is available.

    Enquiries:

    The Liquidators

    Linda Johnson and Ashley Paxton

    Glategny Court

    Glategny Esplanade

    St Peter Port

    Guernsey

    GY1 1WR

    Tel:  01481 721 000

    restructuring-ci@kpmg.com