CIN.L Regulatory News (CIN)

City of London Group plc ("COLG")

Publication of a Related Party Circular and Notice of General Meeting

Further to the announcement of 3 February 2012, COLG announces that it has today approved and will be posting a circular to its shareholders convening a general meeting of COLG to be held on 27 March 2012 at which a resolution to approve the entry into a supplemental deed with John Byrne, Neil Purslow ("Relevant Directors") and Therium Capital Management Limited ("Therium"), ("Supplemental Deed") will be put to shareholders.

COLG entered into the Supplemental Deed, conditional upon obtaining shareholder consent, on 2 February 2012. The Supplemental Deed varies the terms of a shareholders' agreement, governing Therium, entered into between COLG, Therium and the Relevant Directors, dated 17 February 2010 ("Shareholders' Agreement"). The unanimous consent of Therium's shareholders for entry into the Supplemental Deed was obtained at a general meeting of Therium on 20 February 2012.

Therium provides third party litigation funding for individuals, trustees and companies wishing to pursue substantial claims through litigation. COLG is a 50 per cent. shareholder of Therium and supports it through various debt and equity arrangements and has provided loans for working capital purposes.

The Relevant Directors are regarded as a related party pursuant to Listing Rule 11.1.4. The amendments to the Shareholders' Agreement are regarded as a related party transaction pursuant to Listing Rule 11.1.5 and, accordingly, require approval of the shareholders of COLG in a general meeting.

9 March 2012

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