TLI.L Regulatory News (TLI)

Alternative Asset Opportunities PCC Limited (the "Company")

19 August 2013

The Board of Alternative Asset Opportunities PCC Limited (the "Company") announces that the net asset value of the US Traded Life Interests Fund at 31 July 2013 was 56.8 pence per share. This represents an increase of 1.2 pence per share from the NAV at 30 June 2013. During the month LE adjustments on 4 policies reduced NAV by 0.3 pence per share and a profit equivalent to 2.1 pence per share was recognised from the maturity of one policy on one life with a face value of US$5,000,000.

Exchange rate movements had no material impact during the month. The Company's borrowings as at 31 July 2013 stood at US$6,439,000. Net cash, taking into account cash balances and capital debtors (being the above maturity proceeds and one of the two policy maturities announced in June not yet received but both since received in August), amounted to US$1,429,000.

As previously announced, the Board has for some time been concerned at the low level of maturities compared to the life expectancy (LE) projections from our panel of assessors. Earlier this year it therefore requested the Investment Manager to resume the programme of obtaining LE updates, covering a significant portion of the portfolio. Given the difficulties in assessing LEs, the Board is also considering the appropriateness of the 12% discount rate (IRR) utilised in its valuation in the light of the higher IRR requirements of policy buyers seen on many transactions during the last 2-3 years. This work is ongoing and is expected to be completed by early September. The Board will advise Shareholders of the outcome, which will be reflected in the audited financial results for the year ended 30 June 2013.

Enquiries: