Update re Proposed Placing and Debt Conversion

Blavod Wines and Spirits PLC("Blavod" or the "Company")

19 October 2012

Update re Proposed Placing and Debt Conversion

Further to today's announcement (RNS Number: 0530P), Blavod (AIM:BES) confirms that the Admission of the 159,999,999 New Ordinary Shares to be issued pursuant to the Placing, and the 58,344,000 New Ordinary Shares to be issued pursuant to the Debt Conversion, is expected to occur at 8.00 a.m. on 22 October 2012.

The crediting of CREST accounts and the dispatch of definitive share certificates, where applicable, is expected to occur on or before 22 October 2012.

Upon Admission, the proceeds available to the Company pursuant to the Placing, net of commission and expenses, will be £1.1 million.

Following Admission the total issued ordinary share capital of the Company will be 306,102,507 Ordinary Shares, each of which has one voting right.

Other than where stated, capitalised terms used in this notice shall have the same meaning as defined in the circular to Shareholders dated 28 September 2012.

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About Blavod

Blavod Wines & Spirits plc is quoted on the AIM market of the London Stock Exchange. It owns drinks brands in a number of sectors of the alcoholic drinks market. These include premium Vodka, premium Gin and Rum and are called Blavod Original Black Vodka, Blackwood's Vintage Gin & Nordic Vodka, Diva Vodka, Jago's Cream liqueur and RedLeg.

The Group markets and sells these brands in the UK as well as a number of international markets including the US and Russia and has recently announced an agreement with Waldemar Behn GmbH for them to produce, market and distribute Blavod black vodka in Germany under a licensing agreement to their domestic and Duty-Free/Travel Retail markets as well as continental and Eastern Europe.

Through a wholly owned subsidiary, Blavod Drinks Ltd, the Company represents a portfolio of premium quality wine, spirit and liqueur brands in the UK.

www.blavoddrinks.com