Asset Disposal

Ludgate Environmental Fund Limited(the "Company")

The Company announces that it has today entered into an agreement for the sale of the entire issued capital of Ignis Biomass Ltd to Equitix for a consideration of £4 million of which £2.4 million is payable on completion and £1.6 million deferred pending the achievement of certain performance conditions. Additional payments may also be made up to 31 December 2016 against agreed contractual operating targets.

For further information contact:

Ludgate Environmental Fund Limited +44 (0) 1534 609034 John Shakeshaft, Chairman

Ludgate Investments Limited +44 (0) 20 3478 1000Gijs Voskamp

Panmure Gordon (Nomad and Broker) +44 (0) 20 7886 2713Paul Fincham