National Storage Mechanism | Additional information

Donegal Investment Group plc ("Donegal Investment Group", the "Group", or the "Company")

7 September 2020

Share Option Scheme

Donegal Investment Group has in place a share option scheme for management and employees. The share option schemes adopted on 27 July 2005 and 1 July 2015 currently has twenty participants, or option holders, with options over 64,499 Ordinary Shares of nominal value of €0.13 each ("Share Options") at a weighted average exercise price of €1.46 per share option. As part of the recent return of capital 18,458 share options were cash settled such that 64,499 share options remain outstanding as at the date of this announcement.

The Remuneration Committee of the Board of Donegal Investment Group has decided that all outstanding share options are to be either:

(1) Cash settled, in accordance with the terms of the share option scheme, at a price per share of €12.50; or

(2) Exercised by the underlying option holders at the relevant exercise price. Share Options exercised, as opposed to cash settled, shall be satisfied by existing Treasury Shares held by the Company.

Thereafter, there will be no outstanding Share Options unless the Remuneration Committee determine that new Share Options should be granted to any management or employees of the Group.

Six persons discharging managerial responsibilities ("PDMRs") hold 45,198 Share Options, of which, Donegal Investment Group Managing Director, Mr. Ian Ireland, holds 25,198, at an exercise price of €0.31 per share option. Mr. Ireland has exercised all his share options, following which he will hold 105,460 Ordinary Shares in the Company representing 3.73 per cent of Ordinary Shares outstanding.

PDMR	Role	No. of Share Options	Cash Settled	Exercised	Ordinary Shares Held¹
Ian Ireland (Company Director)	Group Managing Director	25,198	Nil	25,198	105,460
Padraic Lenehan (Company Director)	Group Finance Director & Company Secretary	10,000	10,000	Nil	Nil
Vincent Harrison	Group IT Director	833	833	Nil	Nil
Marcel De Sousa	IPM Managing Director	3,333	3,333	Nil	1,080
Alan Cunningham	Nomadic Dairies Managing Director	5,000	5,000	Nil	4,304
Cathal Doherty	Nomadic Dairies Finance Director	833	833	Nil	Nil

Note 1: Post exercise of Share Options

The total cash settled Share Options amount to 31,668 across sixteen participants at a total net cost to the Company of €362,144. The total exercised share options amount to 32,831 across the remaining four participants at a weighted average exercise price of €0.75 for which the Company received exercise proceeds of €24,734 from the four exercising option holders.

Following the exercise of Share Options as described above, the Company has a total of:

· 2,895,958 Ordinary Shares in issue;

· 67,169 Ordinary Shares held as treasury shares; and

· 2,828,789 Ordinary Shares outstanding.

Enquiries:

Donegal Investment Group
Ian Ireland, Managing Director	Telephone: + 353 74 91 21766
Investec
Jonathan Simmons, Director	Telephone: + 353 1 421 0000