TAU.L Regulatory News (TAU)

TAU CAPITAL PLC

("Tau" or "the Company")

23 January 2013

NET ASSET VALUE

The Board is pleased to advise that, following consultation with its Investment Managers, the estimated Net Asset Value ("NAV") as at close of business on 31 December 2012 is US$0.54 per share.

INVESTMENT UPDATE

Tau's Board of Director provides this update on the valuation of its portfolio investment in Lucent Oil & Gas Ltd. ("Lucent"). Lucent is a privately owned independent oil & gas exploration and production company with interests in West Kazakhstan.

Following a further review of the investment in Lucent, based upon advice from its Private Equity Investment Advisor, the Board of Tau has decided to mark down its investment in Lucent by a further 25% or by an amount of US$3.75m. This has resulted in a reduction in total NAV of approximately 3.95%. Lucent has started the process which should lead to negotiations with a number of potential farm-in partners which would enable the Company to drill further exploratory wells which cost approximately US$20m due to the depth, high pressure and the presence of hydrogen sulphide gas. The results of the recent seismic programme are still being analysed. There has however been a continued reduction in Lucent's cash reserves (which are currently approximately US$12.2m) due to payment of the normal operating costs of the Company. Lucent advises that the 2013 estimated outflow of cash will be US$3.76m. Until there are definite results from either the farm-in negotiations or the seismic review, the Board feels it prudent to write down the value of the Company to reflect this cash burn. They intend to keep the situation under review and to consider the valuation further as developments progress and as the Company's cash is used up.

Following the successful completion of the Company's tender offer in November 2012 for an aggregate consideration of US$28,289,100.32 at a repurchase price of US$0.581075 per Share, the Directors are pleased to announce another return of capital to Shareholders. The Directors now intend to return up to US$33,000,000 to Shareholders by means of a further tender offer, to be completed in February 2013, with the repurchase price to be based on the NAV as at 31 January 2013. Further details relating to this proposed tender offer will be announced shortly and a circular to Shareholders setting out the terms of the tender offer will be posted to Shareholders later today. The Directors are pleased to be able to report that the liquidation of the quoted portfolio is now well advanced and that they expect it to complete within the intended six month timeframe from the appointment of Sturgeon Capital Ltd, the new quoted equity investment manager on 20 September 2012

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