Publication of Supplementary Prospectus

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR SOUTH AFRICA OR ANY JURISDICTION IN WHICH THE SAME COULD BE UNLAWFUL. THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE IN ANY JURISDICTION, INCLUDING IN THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR SOUTH AFRICA.

BARONSMEAD VCT 3 PLC

Publication of Supplementary Prospectus

Baronsmead VCT 3 plc (the "Company") has today published a supplementary prospectus approved by the UK Listing Authority. The publication of the supplementary prospectus is a regulatory requirement under the Prospectus Rules following the publication of the Company's annual report and financial statements for the year ended 31 December 2015.

The supplementary prospectus is supplemental to, and should be read in conjunction with, the prospectus published by the Company on 25 January 2016 in relation to the issue of up to 80 million new ordinary shares in connection with the recommended proposals for the merger with Baronsmead VCT 4 plc and an Offer for Subscription to raise up to £10 million.

The supplementary prospectus will shortly be available for inspection at www.morningstar.co.uk/uk/NSM. The supplementary prospectus are also available in electronic form on the Company's website at www.baronsmeadvct3.co.uk.

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