Offer Update

6 December 2022

British Smaller Companies VCT plc and British Smaller Companies VCT2 plc (together the "Companies")

Update on Offers

The Companies are pleased to announce that Applications exceeding £15 million have been received in relation to the new share offers in the 2022/23 tax year to raise, in aggregate, up to £50 million, with an over-allotment facility of up to a further £25 million, in aggregate, by way of prospectus offers of new ordinary shares for subscription (the "Offers"), which were launched on 30 November 2022.

Applicants subscribing for the first £15 million of Application Amounts under the Offers will receive additional New Shares equivalent to 0.25 per cent of the amount they subscribe, which will be paid for by YFM Private Equity Limited, the Companies' investment manager.

The Companies have issued a prospectus relating to the Offers (the "Prospectus"). The proceeds will be allocated between the Companies in accordance with the terms set out in the Prospectus.

The Offers opened on 30 November 2022 and will close on 4 April 2023, or earlier if the Offers become fully subscribed.

The Prospectus is available from the Company's website:

www.bscfunds.com

and is available for inspection at the National Storage Mechanism, which is located at:

https://data.fca.org.uk/#/nsm/nationalstoragemechanism

For further information, please contact:

David Hall YFM Private Equity Limited Tel: 0113 244 1000

Alex Collins Panmure Gordon (UK) Limited Tel: 0207 886 2767