Capital Allocation Update

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 which forms part of domestic law in the United Kingdom pursuant to The European Union Withdrawal Act 2018, as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019.

The Schiehallion Fund Limited

LEI: 213800NQOLJA1JCWXQ56

Capital Allocation Update

The Board notes that, since the Conversion of the C Shares in September, the discount to net asset value ('NAV') at which the Company's Ordinary Shares trade has widened.

The Board and the Investment Manager are focussed on maximising returns for Shareholders over the long term and, in this context, their priority is to ensure that the Company has sufficient capital to deliver on its objectives, including supporting existing investments and satisfying the Company's ongoing working capital requirements.

That said, the Board and the Investment Manager believe that the Ordinary Shares represent an attractive investment opportunity at a deep discount to NAV. As such, the Company intends to allocate up to US$20m towards share repurchases given the limited available capital at this current time. The Board will keep this capital allocation and associated share buyback policy under review.

The person responsible for arranging for the release of this announcement on behalf of the Company is Mr Alex Blake of Baillie Gifford & Co Limited.

Enquiries

Winterflood Securities Limited 020 3100 0000

Neil Morgan

Baillie Gifford & Co 0131 275 2000

Alex Blake