Digitalbox Regulatory News (DBOX)

For immediate release

9 June 2014

Polemos plc

("Polemos" or the "Company")

Placing Update

On 4 June 2014, the Board of Polemos announced that it had raised £650,000, before expenses, by way of a placing of 650,000,000 new Ordinary Shares at a subscription price of 0.1 pence per Placing Share ("the Placing") to be effected by means of a cashbox placing. As previously announced, The Placing is not a rights issue nor an open offer and the Placing Shares have not been offered generally to shareholders on a pre-emptive basis. The Directors believe the extra cost and delay involved in a rights issue or open offer would not be in the best interests of the Company in the circumstances and, accordingly, the Board considers that it is in the best interests of the Company and shareholders as a whole for the funds to be raised through the Placing.

The Company has further reviewed its ongoing requirements and believes that it can operate in accordance with its investment policy with a reduced amount raised by such non pre-emptive means thereby reducing the dilution to existing shareholders while still raising the minimum amount of new funding that the Directors have determined that the Company should raise at this time to be developed on behalf of all shareholders and justify the costs associated with maintaining an AIM listing. Accordingly, the Placing has been adjusted to a conditional raise of £500,000, before expenses (equivalent to £470,000 after expenses), by way of the issue of 500,000,000 new Ordinary Shares ("Placing Shares") at the same subscription price of 0.1 pence per Placing Share.

The Placing is conditional on Admission and an application will be made for admission of the Placing Shares to trade on AIM on or about 16 June 2014.

The proceeds of the Placing will be used to provide working capital and to enable further investments to be made by the Company in accordance with its investment policy. The Board considers that the amount being raised is the minimum to maintain the AIM listing, with approximately half of the net proceeds available to cover annual running and AIM costs and the remainder to provide for additional investment in accordance with the Company's investing policy.

The Placing Shares will, when issued, be credited as fully paid and will rank pari passu in all respects with the existing issued ordinary shares of 0.01 pence per share in the capital of the Company ("Ordinary Shares"), including the right to receive all dividends and other distributions declared, made or paid in respect of such Ordinary Shares after the date of issue of the Placing Shares.

The Placing Shares will together represent approximately 56.4 per cent. of the Company's enlarged issued share capital and the total number of shares in issue following completion of the Placing will be 886,907,464.

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