Mr. Keith Levit reports

Lakeview Hotel Real Estate Investment Trust, pursuant to the provisions of its stock option plan, has granted options to buy an aggregate of 120,000 units to certain trustees, officers and employees of Lakeview REIT. The options have an exercise price of 33 cents per unit and expire on Aug. 23, 2017. Stock option grants are subject to necessary regulatory approvals.

Lakeview REIT maintains a fixed stock option plan, reserving for issuance up to one million units of Lakeview REIT. Following the grant of the options, there will be an aggregate of one million options outstanding under Lakeview's stock option plan.