Impairment of Investment

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR")

Tau Capital plc

("Tau" or the "Company")

Impairment of Investment

Tau Capital plc ("the Company") announces that the Company has received a highly indicative offer for the Company's holding in Stopharm LLP ("Stopharm") which, if finalised, would result in a substantial impairment in the carrying value of this investment. There can be no certainty that any discussions will lead to a transaction, or the terms on which any transaction might be agreed, or its timing. However, the Board believes that there will likely be an impairment in the carrying value of the Stopharm investment irrespective of whether a sale of this investment occurs.

The Company is required to finalise and publish its annual audited accounts for the year ended 31 December 2017 by the deadline of 29 June 2018 as required by AIM Rule 19. However, due to the difficulty in valuing the last remaining asset held by the Company, its 40.35% equity investment in Stopharm, a Kazakh company engaged in wholesale pharmaceutical distribution, the Company may not be able to publish its annual audited accounts by the deadline of 29 June 2018. If the Company is unable to publish its annual audited accounts by 29 June 2018 then trading in the Company's shares will be suspended from 7:30am on 2 July 2018.

The most recently reported carrying value for the Stopharm investment was US$6 million, as reported on 29 September 2017 in the Company's interim results for the six months ended 30 June 2017. A sale of the Stopharm investment would require shareholder approval and once the Board has obtained clarification, a further update will be issued.

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