TSI.L Regulatory News (TSI)

COBURG GROUP PLC

("Coburg" or the "Company")

16 MAY 2014

PLACING

The Directors of Coburg (AIM:CGG) are pleased to announce that the Company has raised £204,750 by way of a Placing of 315,000 new Ordinary Shares of 10p each ("Ordinary Shares") in the capital of the Company at 65p per share (the "Placing").

The proceeds of the Placing will be used to fund the Company's investment in listed and unlisted companies and projects in the natural resources sector.

Three of Coburg's directors are participating in the Placing ("Director Placing") along with Bruce Rowan, who is one of the Company's substantial shareholders. Details of their commitments per the Placing and their holdings in the Company before and after the Placing are set out in the table below:

*Included in the above number of shares were shares owned by Tudeley Holdings Limited (29,000 shares) and Investeco Overseas Holdings Limited (40,000 shares), both companies controlled by K Legg.

The Placing is conditional on the 315,000 new Ordinary Shares being admitted to trading on AIM. Application will be made to the London Stock Exchange for the 315,000 new Ordinary Shares, which will rank pari passu with the Company's existing issued Ordinary Shares, to be admitted to trading and dealings are expected to commence at 8:00 a.m. (BST) on 23 May 2014.

The Director Placing constitutes a related party transaction under Rule 13 of the AIM Rules for Companies. The Directors of Coburg consider, (with the exception of K P Legg, C J Ells and J Maynard), having consulted with the Company's Nominated Adviser, that the terms of the Director Placing are fair and reasonable insofar as the Company's shareholders are concerned.

Bruce Rowan is a substantial shareholder in the Company and has been issued with 92,500 shares pursuant to the Placing. Bruce Rowan's participation in the Placing constitutes a related party transaction under Rule 13 of the AIM Rules for Companies. The Directors of Coburg consider, having consulted with the Company's Nominated Adviser, that Bruce Rowan's participation in the Placing is fair and reasonable in so far as its shareholders are concerned.

Following the issue of the 315,000 new Ordinary Shares the Company's total issued share capital will comprise 727,909 Ordinary Shares of 10p each. No Ordinary Shares are held in treasury.

The above figure of 727,909 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FSA's Disclosure and Transparency Rules.

ENQUIRIES