Trading update

CITY OF LONDON GROUP PLC

("COLG" or the "Company")

28 January, 2016

Trading update

The Board of COLG announces an update regarding its investments.

As was stated in the interim results announcement Trade Finance Partners Limited (TFPL) was seeking to replace its borrowing facility with Macquarie. This process is continuing. Subsequent to the interim announcement Macquarie has restricted the scope of business which it is willing to consider funding which has constrained TFPL's ability to make advances. In addition a limited number of advances has been identified as requiring provisions or write offs including an advance to a customer which TFPL is in the process of placing into administration. It is too soon to quantify the financial impact accurately but the Board of COLG believes that there is likely to be a significant impairment to the value of its investment in TFPL.

Credit Asset Management Limited, COLG's other major investment, in which it has an 85% shareholding, continues to make good progress.

For further information:

City of London Group plc +44 (0)20 7634 9803

John Kent (Chief Executive Officer)

Howard Goodbourn (Chief Financial Officer)

Peel Hunt LLP +44 (0)20 7418 8900

James Britton

Guy Wiehahn

Notes to Editors

City of London Group plc is listed on AIM (TIDM: CIN) and is an investment company focused on providing finance to the SME sector, including professional services firms. It does this through investments in companies providing trade finance, lease finance and loan finance.

www.cityoflondongroup.com