Braveheart Inv Regulatory News (BRH)

9 January 2017

Braveheart Investment Group plc

('Braveheart', the 'Company' or the 'Group')

Third Strategic Investment and Operational and Trading Update

Gyrometric Systems Limited

The Board of Braveheart is pleased to announce that it has acquired a 47% holding in Gyrometric Systems Limited ("Gyrometric"), (www.gyrometric.systems), which has developed a patent protected system of hardware and software to monitor the vibrations in rotating shafts. The company, a spin out from Nottingham Trent University and based in Nottingham, UK, provides monitoring technology which measures the performance of drive shafts in a wide variety of applications, most importantly in marine engines, machine tools and (in prospect) wind turbines, protecting drive-trains from overload and asymmetry damage, allowing them to operate at maximum efficiency, saving energy, maintenance and capital costs. Gyrometric already has established sales partners in Germany and Asia on which it will now build and expects to be breakeven in 2017.

The two previously announced Strategic Investments are performing well and are meeting or exceeding the internal targets that have been set for them. In particular:

Paraytec Limited

Sales have now begun of Paraytec's recently introduced its ActiPix™ D200 system into the global pharmaceutical market. Sirius Analytical one of the first ActiPix™ licensees has now successfully launched a new drug dissolution imager, incorporating ActiPix™ technology which has already met with strong interest from global research laboratories. Paraytec is continuing to work closely on product development with several OEM instrument producers who are interested in being granted licenses of its ActiPix™ technology. The royalties generated from such licenses are expected to comprise the majority of Paraytec's future income.

Kirkstall Limited

Kirkstall has continued to progress well and sales of its 'organ-on-a-chip` system, Quasi Vivo™, are ahead of forecast. In February 2017, Kirkstall will lead the House of Commons launch of the UK's Alliance for Human Relevant Science, which brings together researchers and companies from across the UK to save both human and animal lives through better science and safety in drugs development. Research and Markets (http://www.researchandmarkets.com/ ) estimates that the global `organ-on-a-chip` market is poised to grow at a compound annual growth rate of around 69% over the next decade to reach approximately $6.13 billion by 2025.

Viking Fund Managers

The Board is pleased to announce that its wholly owned subsidiary, Viking Fund Managers Limited, has been awarded an additional sum of £2 million of new capital to invest through the existing Finance Yorkshire Equity Fund contract. This means that the investment phase of this contract is now extended through to March 2017 (rather than the investment phase being completed during 2016, as announced in the Company's interim report which was published on 12 October 2016). Once this extended investment phase of the contract is completed, Viking will concentrate on realising fund investments with this part of the management contract expected to be completed during 2019.

Viking was not successful in winning a fund management contract for the initial phase of the new Northern Powerhouse Investment Fund initiative, however it continues to work with a number of third parties with a view to gaining new fund management contracts.

Outlook

In the interim report, the Company reported unaudited revenues of £562,000 in the six months ended 30 September 2016, generating an unaudited profit after tax of £475,000 and earnings per share of 1.67 pence. The Directors are pleased to report that Group performance continued strongly through the third quarter of the year and they expect this to continue for the remainder of the financial year.

The Board is continuing to exercise careful management of the costs of the Group in order to ensure that the Group's operating revenues continue to be in excess of operating costs. The Board continues to seek realisations from the investment portfolio, which, if successful, will add to the existing cash already available to the Group for further investment in its strategic investments.

Further information:

Braveheart Investment Group plc

Trevor Brown, Chief Executive Tel: +44 1738 587555

Allenby Capital Limited (Nominated Adviser and Broker to Braveheart)

David Worlidge / James Thomas Tel: +44 20 3328 5656