Strategic Review and Subscription

14 October 2011

Woodburne Square AG plc (AIM: WSG)

STRATEGIC REVIEW AND SUBSCRIPTION

The Board of Woodburne Square AG ('Woodburne' or the 'Company'), the silver and precious metals focused investment company, announces that it has undertaken a major review of the strategic position and business model of the Company. The conclusion of this review is that the Company's current business model is unsuited to present market conditions, and that Woodburne should seek to re-structure itself as a broader resource focused investment vehicle.

A circular to shareholders seeking approval for its new investing policy will be issued shortly.

Background

Following the November 2010 re-positioning of Woodburne as a focused precious metals investment company, your Board has sought to identify a portfolio of suitable precious metal investment opportunities in Canada and Australia, to provide UK investors with a direct stake in high quality companies.

Whilst this investment strategy has proved successful in terms of Woodburne's share price, which has more than doubled since the November 2010 re-launch of the Company, the Board believes that for the Company to grow further, and to build on this successful platform, Woodburne will require substantial additional funds.

Having considered the growing uncertainty in the global stock markets, and the resulting difficulty of raising capital on terms acceptable to the Board, it is the view of the Board that there is little prospect of the current sub-optimal size and nature of Woodburne's asset base being successfully addressed in the near future.

Faced with these continuing difficulties, and mindful of the need to retain shareholder value in the Company's existing portfolio, the Board has undertaken a strategic review of the sustainability of Woodburne's current investment model. This review has concluded that to provide a long-term, sustainable platform to drive shareholder value, the Company should build its cash resources, via the phased sell-down of its existing portfolio, and thereafter to seek one or more large-scale natural resource investment or acquisition opportunities.

As part of this revised business model, and to initiate the establishment of the Company's cash resources, Woodburne is pleased to announce that it has raised £150,000 before expenses, by way of subscription by new investors, for 4,615,384 new ordinary shares of 0.4p each in the share capital of the Company (the 'Subscription Shares') at a price of 3.25 pence per share (the 'Subscription Price'). The Subscription Price represents a premium of 4% to the closing share price of the Company on 13 October 2011.

Mr Tom Winnifrith who initiated the review has informed the Company of his intention to resign as Woodburne's Chief Investment Officer with immediate effect. In accepting his resignation, the Board of Woodburne would like to put on record its thanks to Mr Winnifrith for his invaluable contribution to the Company.

Commenting on today's announcement, Martin Kiersnowski, Chairman of Woodburne Square, said:

"Since the formation of Woodburne Square in 2010, your Board, with the invaluable assistance of its Chief Investment Officer, Tom Winnifrith, has sought to deliver real shareholder value through the creation of a growing portfolio of undervalued, high quality precious metal investment positions. It is clear that our analysis of the market was sound, despite recent commodity market corrections, and the Company's share price has remained resilient in very difficult market conditions for smallcap companies in London. However, it was always the intention of your Board that Woodburne would build itself rapidly into a large-scale investment vehicle, with significant positions in all of the world's major natural resource market places. But in the current funding climate your Board has therefore decided to pursue an alternative strategy, one which we are confident will enable us to deliver meaningful shareholder value in the near future".

Enquiries:

Woodburne Square AG plc

Martin Kiersnowski +44 (0) 207 562 3350

Libertas Capital Corporate Finance Limited

Sandy Jamieson +44 (0) 20 569 9650