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THE FUTURE FOR HOT SHOTS

Phil Harrison’s Vision extends to a future beyond Newcastle with the creation of a further
four Centres across the UK over five years. Those Centres are planned to be 54 bay units
with some 3,500m² of hospitality, event and support space in locations with 1 million of
population. However, pursuit of this wider vision will not diminish the effort and attention
needed to complete and open the Newcastle Centre and validate the business plan.

In considering the possibility of additional centres, the following have been taken into
account:

• The design is fully transferable to other locations, to be run as far as possible by the
professional team on the Newcastle Centre. This will reduce both cost and time to
start on site and will assist in expediting planning.

• Particular attention is being paid to municipal golf courses, generally loss-making,
with local authorities seeking alternative use, for which they will then support
planning approval.

• Some 16 locations are under review as ideal for a Centre.

• Funds needed to secure the future locations and develop them will be raised as they
are selected.

• As each new Centre location is identified, so a new SPV will be created by HG&L to
own and operate it.

• A minimum 5 Centres can be built in the first five years with a combined EBITDA
planned to reach £15m pa.

• Each Centre is planned to be cash positive in its first year.

• Subsequent Centres are planned to be funded in similar manner to the Newcastle
Centre subject always to the requirements of investors. This strategy assumes that
HG&L Group will own all or a share in and operate all the Centres, which it creates.

• Structures allowing joint venture participation in individual Centres would be
considered.

• STR has agreed to manage each of the Centres as they are created.
• This cost plan will be the benchmark for evaluating contractor tenders as they are
received.

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