TAU.L Regulatory News (TAU)

TAU CAPITAL PLC

(the "Company" or "Tau")

INVESTMENT UPDATE

The Board of Tau is pleased to provide the following investment update:

1. The Company and its wholly owned subsidiary Tau Cayman LP currently holds cash totalling approximately USD8.2 million. No cash is held in Tenge. Details of a fourth Tender Offer will be announced as soon as the Board has completed a review of the cash that they believe will need to be retained in order to conclude the sale of all assets and the orderly winding up of the Company.

2. The holding of 10 Oxus Gold Plc Convertible Unsecured Loan Notes 2010 have been sold for a consideration of USD425,000. This now completes the sale of the public equity portfolio.

3. The estimated value of Stopharm LLP at 31 December 2013 is USD13.4 million. Subject to audit confirmation, this is the value that will be included in the financial statements for the year ended 31 December 2013. This is an impairment of USD8.1 million on the current carrying value of USD21.5 million.

4. On 11 February 2014 the Tenge was subject to a devaluation of 19% which will have an inevitable impact on the performance of Stopharm LLP during 2014. Forecasts of the likely effect of the devaluation show a worse case valuation for 2014 of USD4.3 million; however the forecasts also indicate that there will be the possibility of meaningful recovery from the effects of the devaluation in 2015.

5. Negotiations by the parties holding 60% of the equity of Stopharm LLP are continuing. However Tau is not a party to the discussions over the pricing of any sale of these shares.

6. Following advice from the Investment Advisor the value of the Company's investment in Lucent Petroleum LLP has been written down to nil. Subject to audit confirmation this is the value that will be included in the financial statements for the year ended 31 December 2013 and represents a further impairment of USD3.75 million from the current carrying value.

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