BHR.L Regulatory News (BHR)

Beacon Hill Resources plc / Ticker: BHR / Index: AIM / Sector: Mining

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND OR JAPAN OR IN ANY OTHER JURISDICTION IN WHICH OFFERS OR SALES WOULD BE PROHIBITED BY APPLICABLE LAW.

Neither this announcement nor any part of it constitutes an offer to sell or issue or the solicitation of an offer to buy, subscribe or acquire any new ordinary shares in the Company in any jurisdiction in which any such offer or solicitation would be unlawful and the information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Australia, the Republic of South Africa, the Republic of Ireland or Japan or any jurisdiction in which such publication or distribution would be unlawful.

14 April 2011

Beacon Hill Resources Plc ('Beacon Hill' or 'the Company')

Proposed cash placing to raise approximately US$20 million

Beacon Hill (AIM: BHR), the AIM listed resource company, which, through its subsidiary Minas Moatize Limitada, owns the only producing coal mine in the Tete province of Mozambique, announces a proposed cash placing to raise approximately US$20 million (approximately £12.3 million*) through a placing of new ordinary shares of 0.25p each ('Placing Shares') ('the Placing'). These funds will be used to strengthen the Company's balance sheet as it looks to take advantage of its first mover position in the globally significant coking coal region of Tete, and in particular, take opportunities to strengthen its logistics chain ahead of its maiden export of coal from its 100% owned Minas Moatize mine in Q2 2011.

The Company is also actively reviewing acquisition opportunities to build upon its existing presence at Minas Moatize, as evidenced by the Company entering into a Memorandum of Understanding ('MoU') relating to the potential acquisition of coal licence area 1165L in the Moatize Coal Basin, as announced on 4 April 2011, and should such acquisition occur, part of the proceeds will be used to part fund this consideration. The Company is currently actively talking to potential strategic partners with a view to financing the balance of the consideration, including by way of debt and off-take pre-payments.

Commenting on the Placing, Justin Lewis, Chairman of Beacon Hill said, "This Placing, which has received significant institutional demand, will further strengthen the balance sheet of the Company and enable us to make additional investment in our rail and port solutions, prior to our first anticipated shipment of coal from our Minas Moatize mine in Q2 2011. These additional funds would also equip the Company with the ability to actively evaluate additional opportunities in Tete, one of the largest undeveloped coking coal regions in the world, where we importantly have a first mover advantage as the only current producer.

"Our ability to identify attractive assets in the Tete region was underpinned by the recent announcement of an MoU to acquire licence area 1165L, and the Group has been actively pursuing discussions with strategic partners to finance the consideration for this acquisition. If completed, the acquisition of licence area 1165L will potentially give the Group a resource base of in excess of 500Mt in Tete, in addition to further near term potential for coking coal production."

Placing

Beacon Hill announces the intention to raise approximately US$20 million (approximately £12.3 million*) through a placing of new ordinary shares of 0.25 pence each with institutional investors. 

Collins Stewart Europe Limited is acting as joint bookrunner, joint broker and nominated adviser to the Company. Renaissance Capital Limited is acting as joint bookrunner and joint broker.

The Placing Shares will be issued credited as fully paid and will rank pari passu in all respects with the Company's existing Ordinary Shares including the right to receive all dividends and other distributions declared, made or paid after the date of issue.

The Company will apply for admission of the Placing Shares ('Admission') to trading on the AIM market of the London Stock Exchange ('AIM'), and it is expected that Admission will take place on AIM on 20 April 2011. The Placing is conditional upon, inter alia, Admission.

The Placing is subject to the terms and conditions set out in the appendix to this announcement, which forms part of the announcement, and sets out further key details of the Placing.

* based on an exchange rate of 1.626 US Dollars per Pound Sterling

**ENDS**

For further information on the Company, visit www.bhrplc.com or contact:

IMPORTANT INFORMATION

This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this announcement and include, but are not limited to, statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the Company's results of operations, financial position, liquidity, prospects, growth, strategies and expectations.

By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements are not guarantees of future performance and the development of the markets and the industry in which the Company operates, may differ materially from those described in, or suggested by, the forward-looking statements contained in this announcement. In addition, even if the development of the markets and the industry in which the Company operates are consistent with the forward-looking statements contained in this announcement, those developments may not be indicative of developments in subsequent periods. A number of factors could cause developments to differ materially from those expressed or implied by the forward-looking statements including, without limitation, general economic and business conditions, industry trends, competition, changes in regulation or government, changes in its business strategy, political and economic uncertainty and other factors.

Any forward-looking statements in this announcement reflect the Company's current view (assuming Admission has occurred) with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company's operations and growth strategy. Investors should specifically consider the factors which could cause results to differ before making an investment decision. Subject to the requirements of the AIM Rules for Companies or applicable law, the Company undertakes no obligation publicly to release the result of any revisions of any forward-looking statements in this announcement that may occur due to any change in the Company's expectations or to reflect events or circumstances after the date of this announcement.

This announcement has been issued by and is the sole responsibility of the Company. No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by Collins Stewart Europe Limited, Renaissance Capital Limited or by any of their respective affiliates or agents as to, or in relation to, the accuracy or completeness of this announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed.

Collins Stewart Europe Limited, which is authorised and regulated in the United Kingdom by the UK Financial Services Authority ('FSA'), is acting as joint bookrunner, joint broker and nominated adviser to the Company and for no-one else in connection with the Placing, and will not be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice to any other person in relation to the Placing or any other matter referred to herein.

Renaissance Capital Limited, which is authorised and regulated in the United Kingdom by the FSA, is acting as joint bookrunner and joint broker to the Company and for no-one else in connection with the Placing, and will not be responsible to anyone other than the Company for providing the protections afforded to its customers or for providing advice to any other person in relation to the Placing or any other matter referred to herein.

The distribution of this announcement and the offering of the Placing Shares in certain jurisdictions may be restricted by law. No action has been taken by the Company or its advisers that would permit an offering of such shares or possession or distribution of this announcement or any other offering or publicity material relating to such shares in any jurisdiction where action for that purpose is required. Persons into whose possession this announcement comes are required by the Company and its advisers to inform themselves about, and to observe such restrictions.

The information in this announcement shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the securities referred to herein in any jurisdiction in which such offer, solicitation or sale would require preparation of a prospectus or other offer documentation, or be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction.

No public offer of securities of the Company is being made in Australia, the United Kingdom, the United States or elsewhere. The information in this announcement does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933 as amended ('the Securities Act') and the securities may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act. There will be no public offer of securities in the United States.

The information in this announcement may not be forwarded or distributed to any other person and may not be reproduced in any manner whatsoever. Any forwarding, distribution, reproduction, or disclosure of this information in whole or in part is unauthorised. Failure to comply with this directive may result in a violation of the Securities Act or the applicable laws of other jurisdictions.

Terms and Conditions of the Placing

IMPORTANT INFORMATION FOR PLACEES ONLY

MEMBERS OF THE PUBLIC ARE NOT ELIGIBLE TO TAKE PART IN THE PLACING. THIS DOCUMENT AND THE TERMS AND CONDITIONS SET OUT AND REFERRED TO HEREIN ARE DIRECTED ONLY AT PERSONS SELECTED BY COLLINS STEWART EUROPE LIMITED OR RENAISSANCE CAPITAL LIMITED ('COLLINS STEWART' AND 'RENAISSANCE CAPITAL', TOGETHER THE 'PLACING AGENTS') WHO ARE 'INVESTMENT PROFESSIONALS' FALLING WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE "FPO") OR "HIGH NET WORTH COMPANIES, UNINCORPORATED ASSOCIATIONS ETC" FALLING WITHIN ARTICLE 49(2) OF THE FPO OR TO PERSONS TO WHOM IT MAY OTHERWISE LAWFULLY BE COMMUNICATED (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS 'RELEVANT PERSONS'). THIS ANNOUNCEMENT AND THE TERMS AND CONDITIONS SET OUT HEREIN MUST NOT BE ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS.

THE ORDINARY SHARES THAT ARE THE SUBJECT OF THE PLACING (THE 'PLACING SHARES') ARE NOT BEING OFFERED OR SOLD TO ANY PERSON IN THE EUROPEAN UNION, OTHER THAN TO 'QUALIFIED INVESTORS' AS DEFINED IN ARTICLE 2.1(E) OF DIRECTIVE 2003/71/EC (THE 'PROSPECTUS DIRECTIVE'), WHICH INCLUDES LEGAL ENTITIES WHICH ARE REGULATED BY THE FINANCIAL SERVICES AUTHORITY (THE 'FSA') OR ENTITIES WHICH ARE NOT SO REGULATED WHOSE CORPORATE PURPOSE IS SOLELY TO INVEST IN SECURITIES.

The Placing Shares have not been and will not be registered under the United States Securities Act of 1933, as amended ('the Securities Act') or under the securities laws of any state or other jurisdiction of the United States and may not be offered, sold, resold or delivered, directly or indirectly, in or into the United States absent registration except pursuant to an exemption from or in a transaction not subject to the registration requirements of the Securities Act. No public offering of the Placing Shares is being made in the United States. The Placing is being made outside the United States in offshore transactions (as defined in Regulation S under the Securities Act ('Regulation S')) meeting the requirements of Regulation S under the Securities Act and may be made within the United States to institutional investors who are qualified institutional buyers within the meaning of Rule 144A under the Securities Act ('QIBs'), and also QPs (as defined below) in transactions that are exempt from, or not subject to, the registration requirements under the Securities Act. Persons receiving this document (including custodians, nominees and trustees) must not forward, distribute, mail or otherwise transmit it in or into the United States or use the United States mails, directly or indirectly, in connection with the Placing.

This announcement does not constitute an offer to sell or issue or a solicitation of an offer to buy or subscribe for Placing Shares in any jurisdiction including, without limitation, the United States, Canada, Australia, the Republic of South Africa, the Republic of Ireland or Japan or any other jurisdiction in which such offer or solicitation is or may be unlawful (a 'Prohibited Jurisdiction'). This document and the information contained herein are not for publication or distribution, directly or indirectly, to persons in a Prohibited Jurisdiction unless permitted pursuant to an exemption under the relevant local law or regulation in any such jurisdiction.

The distribution of this document, the Placing and/or issue of the Placing Shares in certain jurisdictions may be restricted by law and/or regulation. No action has been taken by the Company, the Placing Agents or any of their respective Affiliates (as defined below) that would permit an offer of the Placing Shares or possession or distribution of this document or any other publicity material relating to such Placing Shares in any jurisdiction where action for that purpose is required. Persons receiving this document are required to inform themselves about and to observe any such restrictions.

Collins Stewart Europe Limited and Renaissance Capital Limited are each authorised in the United Kingdom by the Financial Services Authority and are acting for Beacon Hill Resources Plc and for no one else in connection with the Placing and will not be responsible to anyone other than Beacon Hill Resources Plc for providing the protections afforded to clients of Collins Stewart Europe Limited and/or Renaissance Capital Limited or for affording advice in relation to the Placing, or any other matters referred to herein.

By participating in the Placing, each person who is invited to and who chooses to participate in the Placing (a 'Placee') by making an oral offer to take up Placing Shares is deemed to have read and understood this announcement in its entirety and to be providing the representations, warranties, undertakings, agreements and acknowledgements contained herein.

Details of the Placing Agreement and the Placing Shares

The Company has today entered into a placing agreement (the 'Placing Agreement') with Collins Stewart and Renaissance Capital, under which Collins Stewart and Renaissance Capital have, subject to the terms set out therein, agreed to each use their reasonable endeavours, as agents of the Company, to procure Placees for the Placing Shares (the 'Placing').

The Placing Shares will, when issued, be credited as fully paid and will rank pari passu in all respects with each other and the existing issued ordinary shares in the capital of the Company.

The Placing Shares will be issued free of any encumbrance, lien or other security interest.

Application for listing and admission to trading

Application will be made to London Stock Exchange plc (the 'London Stock Exchange') for admission to trading of the Placing Shares on the AIM market of the London Stock Exchange. ("Admission"). It is expected that Admission will become effective and that dealings will commence on 20 April 2011, and in any event no later than 3 May 2011.

Participation in, and principal terms of, the Placing

Each of Collins Stewart and Renaissance Capital and their respective Affiliates (as defined below) is entitled to participate as a Placee.

A single price per Placing Share (the 'Placing Price') will be payable to Collins Stewart and Renaissance Capital, as appropriate, by all Placees.

Prospective Placees will be identified and contacted by Collins Stewart or Renaissance Capital, as appropriate.

The Placing is expected to close at 7.00.a.m. on 15 April 2011. However, the Company may, with the prior approval of the Placing Agents, bring forward or postpone this date. In the event such date is changed, the Company will notify investors who have applied for Placing Shares by the publication of a notice through a regulatory information service provider to the London Stock Exchange.

Collins Stewart and Renaissance Capital will re-contact and confirm orally to their respective Placees the size of their respective allocations and a trade confirmation will be dispatched as soon as possible thereafter. Collins Stewart's and Renaissance Capital's oral confirmation of the size of allocations and each Placee's oral commitments to accept the same will constitute a legally binding agreement pursuant to which each such Placee will be required to accept the number of Placing Shares allocated to the Placee at the Placing Price and otherwise on the terms and subject to the conditions set out herein.

The Placing Agents reserve the right to scale back the number of Placing Shares to be subscribed by any Placee. The Placing Agents also reserve the right not to accept offers to subscribe for Placing Shares or to accept such offers in part rather than in whole. The Placing Agents shall be entitled to effect the Placing by such method as they shall in their sole discretion determine. To the fullest extent permissible by law, neither of the Placing Agents or any holding company thereof, nor any subsidiary, branch or affiliate of either of the Placing Agents (each an 'Affiliate') nor any person acting on behalf of any of the foregoing shall have any liability to Placees (or to any other person whether acting on behalf of a Placee or otherwise). In particular, neither of the Placing Agents nor any Affiliate thereof nor any person acting on their behalf shall have any liability to Placees in respect of their conduct of the Placing. 

Each Placee's obligations will be owed to the Company and to each of the Placing Agents. Following the oral confirmation referred to above, each Placee will also have an immediate, separate, irrevocable and binding obligation, owed to Collins Stewart or Renaissance Capital, as appropriate, to pay to Collins Stewart or Renaissance Capital (or as Collins Stewart or Renaissance Capital may direct) in cleared funds an amount equal to the product of the Placing Price and the number of Placing Shares such Placee has agreed to acquire. The Company shall allot such Placing Shares to each Placee following each Placee's payment to Collins Stewart or Renaissance Capital, as appropriate, of such amount.

All obligations of the Placing Agents under the Placing will be subject to fulfilment of the conditions referred to below under "Conditions of the Placing".

Conditions of the Placing

The Placing is conditional upon the Placing Agreement becoming unconditional and not having been terminated in accordance with its terms.

The obligations of the Placing Agents under the Placing Agreement are conditional, inter alia, on:

1. the Placing Shares having been allotted, subject only to Admission;

2. none of the warranties or undertakings given in the Placing Agreement being or having become untrue, inaccurate or misleading in any respect at any time before Admission, and no fact or circumstance having arisen which would constitute a breach of any of the warranties or undertakings provided in the Placing Agreement or constituting a specified event;

3. admission occurring by no later than 8.00 a.m. on 20 April 2011 (or such later date as may be agreed between the Company and the Placing Agents, not being later than 3 May 2011; and

4. the Company delivering, by no later than 5.00 p.m. on the business day prior to Admission, a certificate confirming, inter alia, that none of the representations, warranties and undertakings given by the Company in the Placing Agreement has been breached or was untrue, inaccurate or misleading when made or would cease to be true and accurate were it to be repeated by reference to the facts subsisting on the date of the certificate.

If (a) the conditions are not fulfilled (or to the extent permitted under the Placing Agreement waived by both of the Placing Agents), or (b) the Placing Agreement is terminated in the circumstances specified below, the Placing will lapse and each Placee's rights and obligations hereunder shall cease and determine at such time and no claim may be made by a Placee in respect thereof.

Neither Placing Agent shall have any liability to any Placee (or to any other person whether acting on behalf of a Placee or otherwise) in respect of any decision it may make as to whether or not to waive or to extend the time and/or date for the satisfaction of any condition in the Placing Agreement or in respect of the Placing generally.

By participating in the Placing, each Placee agrees that its rights and obligations hereunder terminate only in the circumstances described above and under "Right to terminate under the Placing Agreement" below, and will not be capable of rescission or termination by the Placee.

Right to terminate under the Placing Agreement

Either of the Placing Agents may, at any time before Admission, terminate the Placing Agreement by giving notice to the Company if, inter alia,:

1. any of the warranties was not true or accurate, or were misleading when given or deemed given or at any time if they were to be repeated (by reference to the facts and circumstances in each case then existing) they would no longer be true and accurate, or would be misleading, in each case in a respect which is material in the context of the Placing; or

2. the Company has failed, or will be unable to comply with its obligations under this Agreement, the Companies Act 2006, Financial Services and Markets Act 2000 or the AIM Rules for Companies; or

3. any of the conditions to the Placing Agreement shall have become incapable of fulfilment and have not been waived as provided for in the Placing Agreement.

In addition, if prior to Admission:

1. there shall have been, occurred, happened or come into effect any event or omission which materially and adversely affects the financial position and/or prospects of the Company and its subsidiaries taken as a whole, or which in the opinion of either of the Placing Agents is or will be or may be materially prejudicial to the Company or to the Placing or to the acquisition of the Placing Shares by Placees; or

2. there shall have occurred any change in national or international financial, monetary, economic, political or stock market conditions which in the reasonable opinion of either of the Placing Agents is or will or is likely to be materially prejudicial to the Company or to the Placing or to the acquisition of the Placing Shares by Placees; or

3. the appointment of either of the Placing Agents as agents of the Company is terminated for any reason or any event has occurred such as to prevent or to a material extent restrict payment for the Placing Shares in the manner contemplated by this Placing Agreement and this announcement,

then the Placing Agents will, to the extent reasonably practicable, consult with the Company and may, during or as soon as practicable following such consultation, give notice to the Company to terminate the Placing Agreement.

By participating in the Placing, each Placee agrees with Collins Stewart and Renaissance Capital, as appropriate, that the exercise by Collins Stewart or Renaissance Capital of any right of termination or other discretion under the Placing Agreement shall be within the absolute discretion of Collins Stewart and Renaissance Capital and that Collins Stewart and Renaissance Capital need not make any reference to their respective Placees in this regard and that, to the fullest extent permitted by law, Collins Stewart and Renaissance Capital shall not have any liability whatsoever to the Placee in connection with any such exercise.

No Prospectus

No offering document or prospectus has been or will be prepared in relation to the Placing and Placees' commitments will be made solely on the basis of the information contained in this announcement and any information previously published by or on behalf of the Company by notification to a Regulatory Information Service (as defined in the AIM Rules for Companies of the London Stock Exchange/Listing Rules).

No Representation or Warranty

Each Placee, by accepting a participation in the Placing, agrees that the content of this announcement is exclusively the responsibility of the Company and confirms to each of the Placing Agents and the Company that it has neither received nor relied on any information, representation, warranty or statement made by or on behalf of either of the Placing Agents (other than the amount of the relevant Placing participation in the oral confirmation given to Placees and the trade confirmation referred to below), any of its Affiliates, any persons acting on its behalf or the Company or its Affiliates or any person acting on its or its Affiliates' behalf and neither of the Placing Agents nor any of their respective Affiliates, nor any persons acting on their behalf, nor the Company or its Affiliates or any person acting on its or its Affiliates' behalf will be liable for the decision of any Placee to participate in the Placing based on any other information, representation, warranty or statement which the Placee may have obtained or received (regardless of whether or not such information, representation, warranty or statement was given or made by or on behalf of any such persons). By participating in the Placing, each Placee acknowledges to and agrees with its relevant Placing Agent for itself and as agent for the Company that, except in relation to the information contained in this announcement, it has relied on its own investigation of the business, financial or other position of the Company in deciding to participate in the Placing. Nothing in this paragraph or any other part of this document shall exclude the liability of any person for fraudulent misrepresentation.

Registration and settlement

Settlement of transactions in the Placing Shares (ISIN GB00B4WM8G33) following Admission will take place within the CREST system, using the DVP mechanism, subject to certain exceptions. Each of the Placing Agents reserves the right to require settlement for and delivery of the Placing Shares to Placees by such other means that they deem necessary, if delivery or settlement is not possible or practicable within the CREST system within the timetable set out in this document or would not be consistent with the regulatory requirements in the Placee's jurisdiction. 

Each Placee allocated Placing Shares in the Placing will be sent a trade confirmation stating the number of Placing Shares allocated to it, the Placing Price, the aggregate amount owed by such Placee to Collins Stewart or Renaissance Capital, as appropriate and settlement instructions.

Placees procured by Collins Stewart should settle against CREST ID: 288.

Placees procured by Renaissance Capital should settle against CREST ID: 3IMAY

It is expected that such trade confirmation will be despatched after market close on 14 April 2011 and that the trade date will be 15 April 2011. Each Placee agrees that it will do all things necessary to ensure that delivery and payment is completed in accordance with either the standing CREST or certificated settlement instructions which it has in place with Collins Stewart or Renaissance Capital, as appropriate.

It is expected that settlement will be on 20 April 2011 on a T+3 basis in accordance with the instructions set out in the trade confirmation.

Interest is chargeable daily on payments not received from Placees on the due date in accordance with the arrangements set out above at the rate of 2 percentage points above the base rate of Barclays Bank Plc.

Each Placee is deemed to agree that if it does not comply with these obligations, the relevant Placing Agent may sell any or all of the Placing Shares allocated to the Placee on such Placee's behalf and retain from the proceeds, for its own account and profit, an amount equal to the aggregate amount owed by the Placee plus any interest due. The Placee will, however, remain liable for any shortfall below the aggregate amount owed by such Placee and it may be required to bear any stamp duty or stamp duty reserve tax (together with any interest or penalties) which may arise upon the sale of such Placing Shares on such Placee's behalf.

If Placing Shares are to be delivered to a custodian or settlement agent, the Placee should ensure that the trade confirmation is copied and delivered immediately to the relevant person within that organisation.

Insofar as Placing Shares are registered in the Placee's name or that of its nominee or in the name of any person for whom the Placee is contracting as agent or that of a nominee for such person, such Placing Shares will, subject as provided below, be so registered free from any liability to PTM levy, stamp duty or stamp duty reserve tax. If there are any circumstances in which any other stamp duty or stamp duty reserve tax is payable in respect of the issue of the Placing Shares, neither of the Placing Agents nor the Company shall be responsible for the payment thereof. Placees will not be entitled to receive any fee or commission in connection with the Placing.

Representations and Warranties

By participating in the Placing, each Placee (and any person acting on such Placee's behalf):

1. represents and warrants that it has read and understood this announcement in its entirety and acknowledges that its participation in the Placing will be governed by the terms of this document;

2. acknowledges that no prospectus or offering document has been prepared in connection with the placing of the Placing Shares;

3. agrees to indemnify on an after-tax basis and hold harmless each of the Company, each of the Placing Agents, their respective Affiliates and any person acting on its behalf from any and all costs, claims, liabilities and expenses (including legal fees and expenses) arising out of or in connection with any breach of the representations, warranties, acknowledgements, agreements and undertakings in this document and further agrees that the provisions of this document shall survive after completion of the Placing;

4. acknowledges that the new Placing Shares of the Company will be admitted to the AIM market of the London Stock Exchange, and the Company is therefore required to publish certain business and financial information in accordance with the rules and practices of the London Stock Exchange (collectively, the 'Exchange Information') and that the Placee is able to obtain or access the Exchange Information without undue difficulty;

5. acknowledges that neither Placing Agent, nor any of their respective Affiliates nor any person acting on their behalf has provided, and will not provide it with any material or information regarding the Placing Shares or the Company; nor has it requested that either Placing Agent, any of its Affiliates or any person acting on its behalf to provide it with any such material or information;

6. acknowledges that the content of this announcement is exclusively the responsibility of the Company and that neither of the Placing Agents, nor any of their respective Affiliates nor any person acting on their behalf will be responsible for or shall have any liability for any information, representation or statement relating to the Company contained in this announcement or any information previously published by or on behalf of the Company and neither Placing Agent, nor any of their respective Affiliates nor any person acting on its behalf will be liable for any Placee's decision to participate in the Placing based on any information, representation or statement contained in this announcement or otherwise. Each Placee further represents, warrants and agrees that the only information on which it is entitled to rely and on which such Placee has relied in committing to subscribe for the Placing Shares is contained in this announcement and any Exchange Information, such information being all that it deems necessary to make an investment decision in respect of the Placing Shares, and that it has relied on its own investigation with respect to the Placing Shares and the Company in connection with its decision to subscribe for the Placing Shares and acknowledges that it is not relying on any investigation that either of the Placing Agents, any of their Affiliates or any person acting on their behalf may have conducted with respect to the Placing Shares or the Company and none of such persons has made any representations to it, express or implied, with respect thereto;

7. acknowledges that it has not relied on any information relating to the Company contained in any research reports prepared by either of the Placing Agents, their Affiliates or any person acting on its or any of its Affiliates' behalf and understands that (a) none of the Placing Agents, any of their Affiliates nor any person acting on their behalf has or shall have any liability for public information or any representation; (b) none of the Placing Agents, any of their Affiliates nor any person acting on their behalf has or shall have any liability for any additional information that has otherwise been made available to such Placee, whether at the date of publication, the date of this document or otherwise; and that (c) none of the Placing Agents, any of their Affiliates nor any person acting on their behalf makes any representation or warranty, express or implied, as to the truth, accuracy or completeness of such information, whether at the date of publication, the date of this announcement or otherwise;

8. represents and warrants that (i) it is entitled to acquire the Placing Shares under the laws and regulations of all relevant jurisdictions which apply to it; (ii) it has fully observed such laws and regulations and obtained all such governmental and other guarantees and other consents and authorities which may be required thereunder and complied with all necessary formalities; (iii) it has all necessary capacity to commit to participation in the Placing and to perform its obligations in relation thereto and will honour such obligations; (iv) it has paid any issue, transfer or other taxes due in connection with its participation in any territory and (v) it has not taken any action which will or may result in the Company, the Placing Agents or any of their Affiliates or any person acting on its behalf being in breach of the legal and/or regulatory requirements of any territory in connection with the Placing;

9. represents and warrants that the issue to the Placee, or the person specified by the Placee for registration as holder, of Placing Shares will not give rise to a liability under any of sections 67, 70, 93 or 96 of the Finance Act 1986 (depositary receipts and clearance services) and that the Placing Shares are not being acquired in connection with arrangements to issue depositary receipts or to issue or transfer Placing Shares into a clearance system;

10. represents and warrants that it understands that the Placing Shares have not been and will not be registered under the Securities Act or under the securities laws of any state or other jurisdiction of the United States (as defined below) and that the Company has not been registered as an "investment company" under the United States Investment Company Act of 1940, as amended;

11. represents and warrants that unless it is "US Person" (within the meaning of Regulation S) that is a "qualified institutional buyer" (as defined in Rule 144A of the Securities Act) in the United States to which the Placing Shares will be offered on a private placement basis, it is, or at the time the Placing Shares are acquired, it will be, (a) the beneficial owner of such Placing Shares and is neither a person located in the United States of America, its territories or possessions, any state of the United States or the District of Columbia (the "United States") nor on behalf of a person in the United States, (b) acquiring the Placing Shares in an offshore transaction (as defined in Regulation S under the Securities Act) and (c) will not offer or sell, directly or indirectly, any of the Placing Shares in the United States except in accordance with Regulation S or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act;

12. represents and warrants that it has not offered or sold and will not offer or sell any Placing Shares to persons in the United Kingdom prior to Admission except to "qualified investors" as defined in Article 2.1(e) of the Prospectus Directive;

13. represents and warrants that it has only communicated or caused to be communicated and will only communicate or cause to be communicated any invitation or inducement to engage in investment activity (within the meaning of section 21 of FSMA) relating to the Placing Shares in circumstances in which it is permitted to do so pursuant to section 21 of FSMA;

14. represents and warrants that it has complied and will comply with all applicable provisions of FSMA with respect to anything done by it in relation to the Placing Shares in, from or otherwise involving the United Kingdom;

15. represents and warrants that it has complied with its obligations in connection with money laundering and terrorist financing under the Criminal Justice Act 1993, the Proceeds of Crime Act 2002, the Terrorism Act 2000, the Anti-terrorism Crime and Security Act 2001 and the Money Laundering Regulations (2007) (the 'Regulations') and, if it is making payment on behalf of a third party, that satisfactory evidence has been obtained and recorded by it to verify the identity of the third party as required by the Regulations;

16. represents and warrants that it is (a) a person falling within Article 19(5) of the FPO or (b) a person falling within Article 49(2)(a) to (d) of the FPO and undertakes that it will acquire, hold, manage or dispose of any Placing Shares that are allocated to it for the purposes of its business;

17. represents and warrants that it is a qualified investor as defined in section 86(7) of FSMA, being a person falling within Article 2.1(e)(i), (ii) or (iii) of the Prospectus Directive;

18. undertakes that it (and any person acting on its behalf) will pay for the Placing Shares acquired by it in accordance with this document on the due time and date set out herein against delivery of such Placing Shares to it, failing which the relevant Placing Shares may be placed with other Placees or sold as the Placing Agents may, in their absolute discretion, determine and it will remain liable for any shortfall below the net proceeds of such sale and the placing proceeds of such Placing Shares and may be required to bear any stamp duty or stamp duty reserve tax (together with any interest or penalties due pursuant to the terms set out or referred to in this document) which may arise upon the sale of such Placee's Placing Shares on its behalf;

19. acknowledges that neither of the Placing Agents, any of their Affiliates nor any person acting on its behalf is making any recommendations to it or advising it regarding the suitability or merits of any transaction it may enter into in connection with the Placing, and acknowledges that neither of the Placing Agents, any of their Affiliates nor any person acting on their behalf has any duties or responsibilities to it for providing advice in relation to the Placing or in respect of any representations, warranties, undertakings or indemnities contained in the Placing Agreement or for the exercise or performance of any of the Placing Agent's rights and obligations thereunder, including any right to waive or vary any condition or exercise any termination right contained therein;

20. undertakes that (i) the person whom it specifies for registration as holder of the Placing Shares will be (a) the Placee or (b) the Placee's nominee, as the case may be, (ii) neither of the Placing Agents nor the Company will be responsible for any liability to stamp duty or stamp duty reserve tax resulting from a failure to observe this requirement and (iii) the Placee and any person acting on its behalf agrees to acquire the Placing Shares on the basis that the Placing Shares will be allotted to the CREST stock account of Collins Stewart or Renaissance Capital, as appropriate, which will hold them as settlement agent as nominee for the Placees until settlement in accordance with its standing settlement instructions with payment for the Placing Shares being made simultaneously upon receipt of the Placing Shares in the Placee's stock account on a delivery versus payment basis;

21. acknowledges that any agreements entered into by it pursuant to these terms and conditions shall be governed by and construed in accordance with the laws of England and it submits (on behalf of itself and on behalf of any person on whose behalf it is acting) to the exclusive jurisdiction of the English courts as regards any claim, dispute or matter arising out of any such contract;

22. acknowledges that it irrevocably appoints any director of Collins Stewart or Renaissance Capital, as appropriate, as its agent for the purposes of executing and delivering to the Company and/or its registrars any documents on its behalf necessary to enable it to be registered as the holder of any of the Placing Shares agreed to be taken up by it under the Placing;

23. represents and warrants that it is not a resident of any Prohibited Jurisdiction and acknowledges that the Placing Shares have not been and will not be registered nor will a prospectus be cleared in respect of the Placing Shares under the securities legislation of any Prohibited Jurisdictions and, subject to certain exceptions, may not be offered, sold, taken up, renounced, delivered or transferred, directly or indirectly, within any Prohibited Jurisdiction;

24. represents and warrants that any person who confirms to Collins Stewart or Renaissance Capital on behalf of a Placee an agreement to subscribe for Placing Shares and/or who authorises Collins Stewart or Renaissance Capital to notify the Placee's name to the Company's registrar, has authority to do so on behalf of the Placee;

25. acknowledges that the agreement to settle each Placee's acquisition of Placing Shares (and/or the acquisition of a person for whom it is contracting as agent) free of stamp duty and stamp duty reserve tax depends on the settlement relating only to an acquisition by it and/or such person direct from the Company of the Placing Shares in question. Such agreement assumes that the Placing Shares are not being acquired in connection with arrangements to issue depositary receipts or to issue or transfer the Placing Shares into a clearance service. If there were any such arrangements, or the settlement related to other dealing in the Placing Shares, stamp duty or stamp duty reserve tax may be payable, for which neither the Company nor the Placing Agents will be responsible. If this is the case, the Placee should take its own advice and notify Collins Stewart or Renaissance Capital accordingly;

26. acknowledges that the Placing Shares will be issued and/or transferred subject to the terms and conditions set out in this document;

27. acknowledges that when a Placee or any person acting on behalf of the Placee is dealing with Collins Stewart or Renaissance Capital any money held in an account with Collins Stewart on behalf of the Placee and/or any person acting on behalf of the Placee will not be treated as client money within the meaning of the relevant rules and regulations of the FSA. The Placee acknowledges that the money will not be subject to the protections conferred by the client money rules; as a consequence, this money will not be segregated from Collins Stewart or Renaissance Capital money in accordance with the client money rules and will be used by Collins Stewart or Renaissance Capital in the course of its business; and the Placee will rank only as a general creditor of Collins Stewart or Renaissance Capital (as the case may be);

28. acknowledges that until 40 days after the later of the commencement of the Placing and the closing date, an offer or sale of Placing Shares within the United States by any dealer (whether or not participating in the Placing) may violate the registration requirements of the Securities Act if such offer or sale is made otherwise than in accordance with Rule 144A under the Securities Act or pursuant to another exemption from registration under the Securities Act to a person that is a "qualified purchaser" (as defined in Section 2(a)(51) of the United States Investment Company Act of 1940, as amended);

29. acknowledges and understands that Collins Stewart and Renaissance Capital and their respective Affiliates are engaged in securities underwriting, trading and brokerage activities and foreign exchange, commodities and derivatives trading, as well as providing investment banking, financing and financial advisory services. In the ordinary course of its trading, brokerage and financing activities, Collins Stewart and Renaissance Capital and their respective Affiliates may at any time hold long or short positions, and may trade or otherwise effect transactions, for its own account or the accounts of customers, in debt or equity securities or senior loans of the Company, or in any related derivative instrument, and understands that Collins Stewart and Renaissance Capital and their respective Affiliates presently maintain a significant holding of shares in the Company;

30. acknowledges that the basis of allocation will be determined by the Company in conjunction with the Placing Agents at its absolute discretion. The right is reserved to reject in whole or in part and/or scale back any participation in the Placing; and

31. acknowledges and understands that the Company, the Placing Agents, and others will rely upon the truth and accuracy of the foregoing representations, warranties, agreements, undertakings and acknowledgements;

The acknowledgements, agreements, undertakings, representations and warranties referred to above are given to each of the Company, Collins Stewart and Renaissance Capital (for its own benefit and, where relevant, the benefit of their Affiliates and any person acting on their respective behalfs) and are irrevocable.

No UK stamp duty or stamp duty reserve tax should be payable to the extent that the Placing Shares are issued or transferred (as the case may be) into CREST to, or to the nominee of, a Placee who holds those shares beneficially (and not as agent or nominee for any other person) within the CREST system and registered in the name of such Placee or such Placee's nominee.

Any arrangements to issue or transfer the Placing Shares into a depositary receipts system or a clearance service or to hold the Placing Shares as agent or nominee of a person to whom a depositary receipt may be issued or who will hold the Placing Shares in a clearance service, or any arrangements subsequently to transfer the Placing Shares, may give rise to stamp duty and/or stamp duty reserve tax, for which neither the Company nor the Placing Agents will be responsible and the Placee to whom (or on behalf of whom, or in respect of the person for whom it is participating in the Placing as an agent or nominee) the allocation, allotment, issue or delivery of Placing Shares has given rise to such stamp duty or stamp duty reserve tax undertakes to pay such stamp duty or stamp duty reserve tax forthwith and to indemnify on an after-tax basis and to hold harmless the Company and the Placing Agents in the event that any of the Company and/or either of the Placing Agents has incurred any such liability to stamp duty or stamp duty reserve tax.

In addition, Placees should note that they will be liable for any capital duty, stamp duty and all other stamp, issue, securities, transfer, registration, documentary or other duties or taxes (including any interest, fines or penalties relating thereto) payable outside the UK by them or any other person on the acquisition by them of any Placing Shares or the agreement by them to acquire any Placing Shares.

All times and dates in this document may be subject to amendment. The Placing Agents shall notify their relevant Placees and any person acting on behalf of the Placees of any such changes.

This document has been issued by the Company and is the sole responsibility of the Company.

The rights and remedies of the Placing Agents and the Company under these terms and conditions are in addition to any rights and remedies which would otherwise be available to each of them and the exercise or partial exercise or partial exercise of one will not prevent the exercise of others.

The obligations of each of the Placing Agents to Placees in respect of the Placing, as well as the Placing Agents obligations under the Placing Agreement, shall be several and not joint or joint and several.

Each Placee may be asked to disclose in writing or orally to Collins Stewart or Renaissance Capital:

(a) if he is an individual, his nationality; or

(b) if he is a discretionary fund manager, the jurisdiction in which the funds are managed or owned.