CIN.L Regulatory News (CIN)

CITY OF LONDON GROUP PLC ("COLG")

THERIUM CAPITAL MANAGEMENT LTD ("TCML") AWARDED NEW INSTITUTIONAL MANDATE: INVESTORS IN FIRST FUND RECEIVE INTERIM DISTRIBUTIONS EQUIVALENT TO THEIR CAPITAL IN 22 MONTHS.

COLG is pleased to announce that its subsidiary TCML has made the following announcement:

·; SIGNING OF MANAGED ACCOUNT FOR INITIAL £5MILLION

·; INVESTORS IN FIRST LLP FUND RECEIVE INTERIM DISTRIBUTIONS EQUIVALENT TO THEIR CAPITAL IN 22 MONTHS

The Board of Therium announces that it has today agreed a mandate from an institutional investor for a managed account.

Under the terms of the arrangement, Therium will act as exclusive investment adviser for this investment of an initial £5 million fund in a portfolio of third party litigation and arbitration claims. It is the parties' stated intention, in due course, to increase the size of the fund to up to £15 million.

The launch of this managed account follows a further distribution to investors in Therium's First LLP Fund, launched in May 2010, which takes distributions already made to investors, after all costs and expenses, to greater than the capital they initially invested, with approximately 68% of the value of that fund still invested.

Neil Purslow, Director of Therium, commented:

"We are delighted to have signed this mandate. In the first quarter of this year we have seen a significant step up in the rate of new enquiries for funding which is generating a strong pipeline for deployment of our funds. At the same time it is encouraging to see our first fund already pass the milestone of distributing to investors the equivalent of all the money they invested, within a 22 month period."

Eric Anstee, Chief Executive of COLG and a Director of Therium commented:

"This is the first Institutional Managed Account for Therium and it demonstrates the track record of the business and the growing interest in this area for Institutional Funds"

5 April 2012

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Notes to Editors:

City of London Group plc (COLG) is an investment company, with a wide range of national and international investments. A public company since 1986, COLG has had a full London Stock Exchange listing since August 1996 (LSE symbol CIN).

The Company's strategy is to build a quality Financial Services Group centred on Specialist Financing and Alternative Fund Management. The Company believes there are particular opportunities in the SME and professional services sectors as major national and foreign banks limit new lending to these borrowers. It therefore seeks to identify and exploit product niches and business models in these sectors where they are supported by strong day to day management teams, providing initial equity, working capital and seed funding for those teams.

The Group seeks above-average performance in growth and income via a prudent mix of low, medium and higher-risk investments. It holds a legacy portfolio of income stocks, offering a high degree of security, which are balanced by a higher risk portfolio, which is primarily focused on the minerals and resources sector, where the Board has particular experience.

Since the final quarter of 2009, COLG has developed four specialist financing funds, pledging significant seed funds to Therium Capital Management Limited, a third party Litigation Funder, Credit Asset Management Limited and Professions Funding Limited, which provides asset backed finance and working capital loans to professional practice firms and finally Trade Finance Partners Limited, a trade finance provider to the SME market.