TCA.L Regulatory News (TCA)

TERRA CAPITAL PLC

("Terra Capital" or the "Company")

4th SEPTEMBER 2012

Update on the Company's investment manager

The Company announced on 29 May 2012 that the appointment of Terra Partners Asset Management (a company incorporated in the Cayman Islands) ("TPAM") as the Company's external investment manager pursuant to the terms of an investment management agreement dated 30 April 2012 entered into between the Company and TPAM (the "Existing Investment Management Agreement") had become unconditional. Further details of the Existing Investment Management Agreement were set out in the Company's circular dated 30 April 2012 (the "Circular"), a copy of which is available at the Company's website (www.terracapital.com).

The board of directors of Terra Capital are pleased to announce that, following an internal restructuring of the TPAM group, the Company has today appointed Terra Partners Asset Management Limited (a company incorporated and regulated in Malta) (the "New Manager") as the new external investment manager to the Company's group pursuant to the terms of an amended and restated investment management agreement effective 1 September 2012 recently entered into between the Company, Terra Capital Cayman (a wholly owned subsidiary of the Company), TPAM and the New Manager (the "New Investment Management Agreement").

The New Manager and TPAM are controlled by the same principals and there will be no change in the personnel carrying out the day to day management of the Company and its group.

The terms of the New Investment Management Agreement are, in all material respects, the same as the Existing Investment Management Agreement save that:

(i) certain changes have been made to the 'client classification', 'execution' and 'aggregation of orders' provisions to ensure that the New Manager complies with certain requirements of the Maltese Financial Services Authority;

(ii) the Company's existing conflicts policy has been refined so that, if the New Manager believes that an investment opportunity is not suitable for the Company, it will continue to treat the Company fairly in respect of that investment opportunity in accordance with the rules of the Maltese Financial Services Authority; and

(iii) if a performance fee becomes due and payable under the New Investment Management Agreement in respect of the current performance period, it will be paid to the New Manager and not TPAM.

-ENDS-

Enquiries

For more information, please visit www.terracapital.com or contact:

Galileo Fund Services Limited (Administrator)Ian Dungate+44 1624 692600

Matrix Corporate Capital LLP (Nominated adviser and corporate broker)Paul Fincham or Jonathan Becher+44 20 3206 7000

Terra Capital plc

Howard Golden or Filip Montfort,

Terra Partners Asset Management Ltd.

+356-2371-7000