Issue of Equity

Falkland Islands Holdings plc

("FIH" or "the Company")

Issue of Equity

FIH announces that on 09 October 2012 it issued 6,000 new ordinary shares of 10p each in the capital of the Company ("Ordinary Shares") to an ex-employee following the exercise of options granted under the 2009 Executive Share Option Scheme.

Following the exercise of these options, the Company has a total number of 12,431,623 shares in issue. This figure may be used by shareholders in the Company 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 share capital of the Company under the Disclosure and Transparency Rules.

The total number of options outstanding following this exercise is 858,847.

Enquiries:

Falkland Islands Holdings plc

David Hudd, Chairman Tel: 07771 893 267

John Foster, Managing Director Tel: 01279 461 630

WH Ireland Ltd. - NOMAD and Broker to FIH

Adrian Hadden / Nick Field Tel: 0207 220 1666

FTI Consulting

Billy Clegg / Edward Westropp / Georgina Bonham Tel: 020 7831 3113