Craven House Capital Regulatory News (CRV)

9 December 2013

Craven House Capital Plc

("Craven House" or the "Company")

Issue of Equity

The Company today announces that as disclosed in the announcement on 29 November 2013 of the Company's annual results for the year ended 31 May 2013, under the terms of the management services agreement (the "Management Services Agreement") entered into with Desmond Holdings Ltd ("Desmond"), the Company's Investment Manager, Desmond has been awarded a performance fee of £170,600 for the financial year ended 31 May 2013. On 2 August 2011, the Company announced the terms of their Management Services Agreement with Desmond. Under this agreement, the Company agreed to pay Desmond, as Investment Manager, an annual performance fee equal to 20% of the increase in the Net Asset Value of the Company, subject to a hurdle rate of at least 5% (the "Performance Fee"). These conditions have been fulfilled, and the Company has calculated Desmond's Performance fee accordingly.

This Performance Fee will be paid by the issue of 13,648,000 ordinary shares of 0.1 pence each in the Company ("Ordinary Shares") to Desmond, at a price of 1.25 pence per Ordinary Share.

The Company is also issuing 1,800,000 Ordinary Shares to Balbir Bindra, in lieu of cash, as remuneration for 2 years of his £9,000 annual salary commencing on 28 May 2013.

Application has been made to the London Stock Exchange for the 15,448,000 new Ordinary Shares to be admitted to trading on AIM. Admission is expected to take place on 13 December 2013. The shares will rank pari passu with the existing issued ordinary shares.

Following the issue of the new ordinary shares, the Company's total issued share capital will consist of 702,466,557ordinary shares with each share carrying the right to one vote. The Company has no ordinary shares held in treasury. The total of 702,466,557 ordinary shares may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.

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