Fih Group Regulatory News (FIH)

Falkland Islands Holdings plc

("FIH" or "the Company")

Clarification re: Capital Reorganisation

Further to the announcement made earlier today regarding the capital reorganisation, the Company clarifies that the capital reorganisation, consisting of a consolidation, purchase of fractional entitlements by the Company, and sub-division, will result in the consolidation of every one hundred existing ordinary shares of 10 pence in the capital of the Company (the "Existing Ordinary Shares") into a consolidated share of £10 in the Capital of the Company (the "Consolidated Shares"), the repurchase from Small Shareholders (being those with less than 100 Existing Ordinary Shares) of fractional entitlements created by this consolidation (the "Fractional Entitlements") (except if the shareholder has elected otherwise) and the subsequent sub-division of the consolidated shares into new ordinary shares of 10 pence in the capital of the Company (the "New Ordinary Shares").

The price payable by the Company for the Fractional Entitlements is to be calculated on the basis of a Consolidated Share having a value equal to one hundred times the value equal to 105 per cent. of the average mid-market price of an Ordinary Share for the five business days ending on the 20 of August 2013, and the shares so repurchased will be held in treasury by the Company. Application has been made for the admission of 12,431,623 New Ordinary Shares to trading on AIM, which is expected to take place on 21 August 2013.

Falkland Islands Holdings plc

David Hudd, Chairman Tel: 07771 893 267

John Foster, Managing Director Tel: 01279 461 630

WH Ireland Ltd. - NOMAD and Broker to FIH

Adrian Hadden / Nick Field Tel: 0207 220 1666

FTI Consulting

Billy Clegg / Edward Westropp / Georgina Goodhew Tel: 020 7831 3113