Thunderbird Resorts Inc.: Favorable First Steps in Refinancing Peru-Related Debt

PANAMA, REPUBLIC OF PANAMA--(Marketwire - Dec. 29, 2011) - Thunderbird Resorts Inc. ("Thunderbird" or "Group") (FRANKFURT:4TR)(EURONEXT:TBIRD) is pleased to announce that it has refinanced a portion of its of Peru-related debt. As previously announced, the Group has more than halved its total debt from $169 million at year-end 2009 to $78.8 million as of September 2011, a decrease of $90 million in just 21 months.

Prior to refinancing, as described below, Peru-related total debt was approximately $43.0 million or 55% of total Group debt. We are restructuring this largest piece of our global debt to enhance cash flow and fortify our balance sheet, which are keys to returning the Group to a growth mode.

Peru-related debt sits on the books of the following entities, all 100% owned by Thunderbird:

• Thunderbird Hoteles Las Americas ("THLA"), which owns the Group's two Peru hotels.
• Fiesta Casino Benavides ("FCB"), which owns the casino in our Fiesta Hotel.
• Sun Nippon ("SN") and Interstate Gaming ("IS"), which collectively own 3 slot parlors and 1 casino.
• International Thunderbird (BVI) Ltd. ("ITBVI"), which used debt to capitalize THLA and FCB.

Peru-related debt prior to refinancing was structured as follows (as of November 2011):

Peru-related debt is comprised of approximately 18 lenders. For months, the Group has been negotiating with these lenders and hopes to announce further Peru-related debt restructurings in the near term. We are pleased to announce the two restructurings as follows:

1. Restructured Lender Group 1: 8 Sweep Debt holders have jointly agreed to the following:

1. Receive 481,615 Thunderbird common shares with an effective price of $3.09 per share to pay $1,489,102 of a combination of Sweep Debt and Accrued Interest. This price is a premium to recent trading prices.
2. Replace $4,639,678 of Sweep Debt and Accrued Interest for convertible notes totaling $4,495,866 with Thunderbird as the borrower ("CNs"). The difference represents $143,812 of discounts negotiated with Sweet Debt holders. The CNs pay interest only of 8.5% over a 5-year tenure. The CNs principal balance shall convert automatically to Thunderbird common stock at an average price of $3.33 as follows:
3. Tranche 1: Any time after 1 January 2013, 33% of the amount owed shall convert when the 30-day weighted average trading price is no less than $3.25 and conversion shall be at $2.50.
4. Tranche 2: Any time 12 months after conversion of Tranche 1, 33% of the amount owed shall convert when the 30-day weighted average trading price is no less than $4.25 and conversion shall be at $3.25.
5. Tranche 3: Any time 12 months after conversion of Tranche 2, 33% of the amount owed shall convert when the 30-day weighted average trading price is no less than $5.25 and conversion shall be at $4.25.

The Group may require early conversion based on the same pricing formulas described above. Under this refinancing, Lender Group 1 terminates its portion of the Profit Share.

2. Restructured Lender Group 2: A single Sweep Debt holder, which is a Latin American bank, has agreed to refinance $5.0 million of Sweep Debt balance and approximately $1.2 million of Accrued Interest in a new note with the following conditions:

1. The borrower is Thunderbird Hoteles Las Americas ("THLA"), the entity that owns the Group's two hotels in Peru.
2. The interest rate has been reduced to 8.5% from 10%.
3. Lender Group 2 has terminated its portion of the Profit Share.
4. Lender will fund, as additional loan proceeds, its interest for up to 2 years and at the end of year 3, THLA will repay principal and accrued interest in a single balloon payment.

Lender Group 2 and THLA entered into this agreement to provide a bridge period under which this bank and THLA are jointly working to restructure the Senior Debt in ways favorable to THLA. Negotiations are ongoing and the Group hopes to make further announcements in the near term, although there can be no assurances that refinancing of the Senior Debt will be successful. Management believes these two transactions benefit the Group in key ways:

1. Shares issued are priced at a premium to current market prices.
2. Interest rates have been reduced from 10% to 8.5%.
3. Lenders terminate their portion of the Profit Share, which in effect increases the value of the Group's ownership in Peru.
4. Peru-related debt (and Group debt) has been reduced effective immediately by approximately $1.6 million after deducting: i) Sweep Debt and Accrued Interest exchanged for Thunderbird common stock; and ii) Discounts on Sweep Debt and Accrued Interest.
5. Upon full conversion, if such occurs, Group debt will be reduced by an additional approximately $4.5 million at shares prices that are a premium to current market prices.

The Group is actively negotiating with other lenders of Peru-related debt and hopes to announce further restructurings in the near term. As part of these negotiations, the Group expects to issue between 150,000 to 250,000 shares as success-based financial advisory fees to third party advisors. While there can be no assurances that these negotiations will be successful, Management believes that successful outcomes may enhance cash flow, fortify our balance sheet and help position the Group for a return to growth.

Officer Resignation: The Group announces the resignation of Raul Sueiro, effective 31 December 2011. Management has been fortunate to have Mr. Sueiro as an officer and/or employee for over 13 years, most recently as country manager for the Philippines. Mr. Sueiro is leaving Thunderbird for personal reasons and we wish him all the best.

ABOUT THE COMPANY

We are an international provider of branded casino and hospitality services, focused on markets in Asia and Latin America. Our mission is to "create extraordinary experiences for our guests". Additional information about the Group is available at www.thunderbirdresorts.com.

Cautionary Notice: This release contains certain forward-looking statements within the meaning of the securities laws and regulations of various international, federal, and state jurisdictions. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential revenue and future plans and objectives of the Group are forward-looking statements that involve risk and uncertainties. There can be no assurances that such statements will prove to be accurate and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Group's forward-looking statements include competitive pressures, unfavorable changes in regulatory structures, and general risks associated with business, all of which are disclosed under the heading "Risk Factors" and elsewhere in the Group's documents filed from time-to-time with the NYSE Euronext Amsterdam and other regulatory authorities.