$1,500,000 Convertible Loan to FMCD Ltd

30 September 2016

Craven House Capital Plc

("Craven House" or the "Company")

$1,500,000 Convertible Loan to FMCD Ltd

The Company today announces that it has provided a $1,500,000 convertible loan (the "Loan") to FMCD Ltd ("FMCD"), a company specialising in the import, distribution and sale of lubricants and food products into Angola. The loan has a term of one year, and carries an interest rate of 5%. Upon maturity, the loan will be repaid, renewed or is convertible for up to 10% of the equity in FMCD at the discretion of Craven House.

FMCD has distribution agreements in place with Chevron and Caltex and its registered clients include Sonangol, Maersk Drilling, Sonatide, Halliburton, Robert Hudson, PlusPetrol, Eni, Chevron, Hercules, and KCA.

FMCD's geographic focus is on the Angolan enclave of Cabinda, which benefits from some of the most productive oil fields in the world. Hence there is significant demand for lubricants and food products to support the upstream sector.

Mark Pajak, Acting Chairman, commented:

"We are very pleased to announce our first investment into Angola with FMCD. FMCD have a well-established track-record in the country; their management team have built an exceptional network of relationships with the largest oil companies in the world.

Despite Angola's enormous oil production and reserves, the country has suffered as a result of the recent collapse of the global oil price. Capital controls and a growing current account deficit have resulted in significant capital flight and a shortage of trade finance facilities. This creates an enormous opportunity for experienced companies like FMCD, who can leverage their experience and footprint to become the supplier of choice. This convertible loan will enable FMCD to increase its stock levels and order-book while providing Craven House with the senior security in the capital structure, an above market fixed current return and the option to achieve equity like returns"

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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About Craven House Capital

Craven House Capital is a frontier and emerging market focused merchant bank seeking value oriented long term investments. Craven House invests in all segments of the capital structure in partnership with local entrepreneurs and the local business community. Craven House provides long term patient capital and is often involved in restructuring, expansion and turn around investments in crisis and transitioning economies.