Transaction in Own Shares

British Smaller Companies VCT2 plc ("the Company")

Purchase of Own Securities and Total Voting Rights

The Company announces that on 24 March 2016 it purchased 74,364 ordinary shares of 10 pence each at a price of 56.86 pence per share. These shares will be held in treasury.

If these shares had been purchased prior to the quarter ended 31 December 2015 and on the assumption that there were no other alterations, the unaudited net asset value per ordinary share of the Company at that date would have been unaltered at 62.9 pence per ordinary share.

The Company's issued share capital now consists of 92,871,920 ordinary shares of 10 pence each with voting rights. In addition, the Company now holds 2,202,367 ordinary shares of 10 pence each in treasury.

The above figure may be used by shareholders 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 Company under the FCA's Disclosure and Transparency Rules.

24 March 2016

For further information, please contact:

David Hall YFM Private Equity Limited Tel: 0113 244 1000

Gillian Martin Nplus1 Singer Advisory LLP Tel: 0207 496 3000