Palace Capital Regulatory News (PCA)

6 February 2023

Palace Capital plc

("Palace Capital" or the "Company")

Share Buyback

Palace Capital intends to begin a further share buyback programme (the 'Programme') following its successful repurchase of 2.3m shares in July 2022.

The Company intends to repurchase up to 1,000,000 ordinary shares of 10 pence each in the capital of the Company ("Ordinary Shares") representing approximately 2.3% of the Company's Ordinary Shares in issue with voting rights. The aggregate purchase price of all Ordinary Shares acquired under the Programme will be no more than £2 million (excluding stamp duty and expenses).

The Company has appointed Numis Securities Limited ("Numis") to manage the Programme.

Share purchases will take place in open market transactions and may be made from time to time depending on market conditions, share price and trading volume. Purchases of the Company's shares under the Programme will commence from today. The Programme is in accordance with the Company's general authority to purchase a maximum of 4,632,892 Ordinary Shares, granted by its shareholders at the Annual General Meeting held on 29 July 2022. The Programme will be effected within the parameters of the Market Abuse Regulation 596/2014/EU and the Commission Delegated Regulation 2016/1052/EU (as in force in the UK from time to time, including where relevant pursuant to the Market Abuse (Amendment) (EU Exit) Regulations 2019). The Company confirms that it currently has no other unpublished price sensitive information.

Share repurchases will be made on the Company's behalf and in accordance with the arrangement with Numis in open market transactions, depending on market conditions, share price and trading volume. The maximum price paid per ordinary share will be limited to be no more than the higher of (i) 105 per cent of the average middle market closing price of the Company's ordinary shares for the five business days before the purchase is made, and (ii) the higher of the price of the last independent trade and the highest current independent bid on the trading venue where the purchase is carried out. It is intended that repurchased shares will be held in treasury. Such treasury shares are not entitled to dividends and have no voting rights at the Company's general meetings.

Due to the limited liquidity in the Ordinary Shares, a buyback of Ordinary Shares pursuant to the Programme on any given trading day may represent a significant proportion of the daily trading volume in the Ordinary Shares on the London Stock Exchange and may exceed 25 per cent of the average daily trading volume and, accordingly, the Company may not benefit from the exemption contained in Article 5(1) of Regulation (EU) No. 596/2014.

Commenting on today's announcement, Steven Owen, Interim Executive Chairman said:

"The Company continues to make progress with smaller asset disposals across the portfolio in a difficult environment whilst reducing our debt costs. This disciplined approach is enabling us to deliver value to shareholders via a further share buyback programme.

"The Board continues to monitor the timing of significant property disposals. In the meantime, the focus on disposal of smaller assets, active asset management and debt repayment continues. We will provide the market with a further update in due course."

Palace Capital plc Steven Owen, Interim Executive Chairman / Matthew Simpson, Chief Financial Officer info@palacecapitalplc.com or via FTI

Financial PR FTI ConsultingDido Laurimore / Giles BarrieTel: +44 (0)20 3727 1000palacecapital@fticonsulting.com