CIFU.L Regulatory News (CIFU)

Carador Income Fund plc (the "Company")

20 June 2012

Potential C Share Issue

Following the Company's announcements on 27 April and 11 May 2012, the Directors note, as advised by the Company's brokers Dexion Capital plc and Singer Capital Markets, that there remains continued demand for the Company's shares. In addition, GSO Capital Partners International LLP, the Company's investment manager, believes that there continues to be investment opportunities for the Company. Therefore the Directors have determined to issue new C shares of up to approximately $125 million, through a placing which is expected to close towards the end of July 2012.

As previously announced, in order to preserve the Company's investment flexibility and in light of the maturing nature of the Company's portfolio together with its continuation vote in 2017, the Directors have agreed with the investment manager that an aggregate of $175 million of new funds (which includes amounts raised under the expected placing of C shares in July) can be raised through future fund raisings. Once this level has been reached or by 31 May 2013, whichever is earlier, new fund raisings will be undertaken only with the approval of shareholders through an ordinary resolution or otherwise subject to an annual limit of 10% of the issued share capital of the Company, as approved by shareholders at the Company's annual general meeting.

Enquires: