Gusbourne Regulatory News (GUS)

Gusbourne Plc

("Gusbourne" or the "Company")

Related Party Transaction

Potential Equity Raise

As previously announced by the Company, the achievement of the Group's long-term development strategy continues to depend on the raising of further funding, whether through debt or equity. The Company has recently secured interest from a number of potential investors, and anticipates that it will be able to conclude an equity raise within the coming months through a subscription of new ordinary shares in the Company from Lord Ashcroft KCMG PC and other investors (the "Subscription").

The proceeds from the Subscription will continue to be applied towards working capital and capital expenditure, in-line with the Company's long-term strategic plan.

In order to meet the Company's immediate working capital requirements, Gusbourne has entered into an agreement with Lord Ashcroft KCMG PC to receive an unsecured loan of £1,000,000 (the "Loan Agreement") which is intended to be repaid in full, through conversion into new ordinary shares as part of the Subscription, when it concludes.

If the Subscription does not proceed, or if a subscription price is not agreed between the Company and Lord Ashcroft by 31 July 2018, the loan and interest will become repayable on demand, subject to such repayment not being in breach of the Company's existing facilities with Barclays Bank plc. The loan carries interest for a period of 3 months following the date of the loan agreement at the rate of 7% per annum above the base rate as varied from time to time by Barclays Bank plc, and thereafter at 10% per annum. Gusbourne may repay the loan or any part of it early but may not reborrow any amount so repaid.

The Loan Agreement constitutes a related party transaction under Rule 13 of the AIM Rules as Lord Ashcroft is a substantial shareholder in the Company.

The Directors of the Company, having consulted with Cenkos Securities plc in its capacity as the Company's nominated adviser for the purposes of the AIM Rules, consider the terms of the transaction to be fair and reasonable insofar as the Company's shareholders are concerned.

For further information contact:

Gusbourne Plc

Andrew Weeber +44 (0)1233 758 666

Cenkos Securities plc

Nicholas Wells / Callum Davidson +44 (0)20 7397 8920

Note: This announcement and other press releases are available to view at the Company's website: www.gusbourneplc.com

Note to Editors

Gusbourne PLC ("the Company") is engaged, through its wholly owned subsidiary Gusbourne Estate Limited (together the "Group"), in the production and distribution of a range of high quality and award winning English sparkling wines from grapes grown in its own vineyards in Kent and West Sussex. The majority of the Group's vineyards are located at its freehold estate at Appledore in Kent where the winery is also based. The Group has a total of 231 acres of vineyards.