FOX.L Regulatory News (FOX)

AIM: FOX 21 October 2013

Fox Marble Holdings plc

("Fox Marble" or the "Company")

Operational Update

First Sales Achieved and a Further Two Quarries in Operation

Fox Marble, the AIM listed Company focused on marble quarrying extraction and production in Kosovo and the Balkans region, is pleased to provide an operational update in conjunction with its transition from extraction phase to becoming an established supplier of premium quality marble for global sales and distribution.

Highlights

· Four quarries now operational;

· High quality marble found in the new Suhogerll quarry;

· First sales of marble made, including Sivec marble from Macedonia

· Factory site development on track with expected completion by Q1 2014

· Distribution agreement in the US agreed

Quarrying

Since the Company's Interim Results Statement of 20 September 2013, Fox Marble has now started to extract from another two quarries, bringing the total quarries now in production to four.

On opening the Suhogerll quarry in Kosovo, large quantities of high quality stone have been revealed, which the Company believes to be equivalent to Calacatta gold, a rare premium type of marble found in the Italian coast.

Processing plant

The Company continues to progress with the development of its own processing plant, which will be built on the 10 hectares of land acquired in Kosovo with a 99 year lease.

The factory site has been now been leveled and is ready for construction; the detailed construction drawings and architect plans have been further developed with final floor drawings due for completion imminently. These developments are on track for the shell to be built and floor laid by the end of the year, with the aim to complete the plant in Q1 2014. All manufacturing equipment has also now been sourced with some of the key items, such as gang saws, purchased and due to arrive in time for the opening of the factory.

Sales and Distribution

Fox Marble is pleased to announce that it has made the first sale of its Sivec marble in the UK and it has also sold block marble from one of its quarries in Kosovo to a customer in Lebanon.

Enquiries have been building globally and the Company has recently agreed a distribution agreement in the US. The US is one of the largest importers of cut and polished slab marble in the world. So far, this market has shown a positive level of interest for Fox Marble's stone, especially the Cremo Fiorito Olta, Illyric white and Rosato Grey Cervenilla marble from the Rahovec quarry located in Kosovo. The Company is now in the process of preparing slabs for the first container shipment to the US.

With regards to other markets, Fox Marble has appointed an agent in China and there are two agents selling blocks from the processing yard in Carrara, Italy. This is a portal into Europe, which should also be boosted by the strategic relationship made with Pisani Plc ("Pisani") and its established European sales force.

Following the Company's July 2013 off take agreement, to supply cut and polished marble to Pisani, one of the leading wholesale suppliers of marble in the UK, Fox Marble is due to hold an Open Day at the Pisani showroom on 6 November 2013.

Commenting on today's update, Chris Gilbert, Chief Executive of Fox Marble, said: "We are pleased to report further positive steps in our strategy as we start to receive our first revenues by the end of this year.

"As stated at the time of our interim results, we have now opened up two more quarries for production and our processing plant is on track. We have also started to make great strides with regards to our sales and distribution. We have been making strategic relationships and agreements to ensure that we are well positioned to reach the key premium, luxury markets we intend to supply. We look forward to keeping shareholders informed as we start to pick up pace in transforming this business into a high quality producing and marketing marble quarrying Company."

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For more information on Fox Marble please visit www.foxmarble.net or contact:

Notes to Editors

Fox Marble Holdings Plc is an AIM quoted natural stone extraction Company operating in Kosovo and the Balkans region, with headquarters in the United Kingdom.

The Company has been granted mining licenses in relation to six separate marble quarries and completed a maiden JORC resource indicating an in-situ valuation of approximately Euro 16.5 billion. Established in 2011, Fox Marble has access to over 300 million cubic metres of premium quality marble including white breccia and honey yellow onyx.

Fox Marble also has rights to extract grey marble from the Drini quarry and cream and white grey marble from the Malesheva quarry, both in Kosovo and white Sivec marble from the Prilep Quarry in Macedonia.