Caspian announces £460,000 Placing

Caspian Holdings Plc

7 February 2012

Caspian Holdings Plc

("Caspian" or the "Company")

Caspian Announces £460,000 Placing

Caspian Holdings announces that it has completed a placing of 153,333,333 ordinary shares of 0.1p per share ("Ordinary Shares") at 0.3p per Ordinary Share to raise approximately £460,000 (the "Placing"). The net proceeds from the Placing will be used to finance the tungsten tailings production facility, mine extension exploration and current working capital of the Company.

Application will be made for the new Ordinary Shares to be admitted to trading on AIM which is expected to occur on 21 February 2012.

Related Party Transaction

As part of the Placing, Mr Michael Garland (a non-executive director of the Company) has subscribed for 33,333,333 Ordinary Shares amounting to £100,000 which falls to be treated as a related party transaction under AIM Rule 13. The independent directors, being Mr Michael Masterman and Mr Byron Pirola, having consulted with Grant Thornton Corporate Finance (the Company's nominated adviser), confirm that they are satisfied that the terms of Mr Garland's participation in the Placing are fair and reasonable insofar as the shareholders of the Company are concerned.

Following the issue of the new Ordinary Shares, Mr Michael Garland will be interested in 44,133,333 Ordinary Shares, representing an interest of 4.57 per cent of the Company's total voting rights.

Following the Placing, the Company will have 964,779,889 Ordinary Shares in issue.

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