8 September, 2009

Dear Shareholder

In my last update on 12th June I anticipated that we would circulate accounts during August with a view to holding our AGM during September. However, the task of discovering and analysing the historical financial information for the many group companies has presented challenges which have taken longer to deal with than we would have hoped. It is now our plan to circulate the accounts for 2007 in early November, possibly holding the AGM on 27th November, at which time we will detail certain matters which we believe should be drawn to the attention of shareholders. We then plan to hold further AGMs on or around 31st January and 31st March 2010 to approve the 2008 and 2009 accounts respectively.

We still lack some financial information, but our best estimate is that the net worth of London Asia Capital plc today approaches £20 million. Clearly, this is not the amount that could be realised today in cash and may rise or fall with markets in the future, though values in Asia have been advancing quite well recently. The group currently holds cash and quoted investments to the value of approximately £8 million. Further to this the group also holds a number of unquoted investments which your directors believe may have long term value, in particular a £9 million investment in Zhongying Changjiang based in Wuhan.

Following the cancellation of approximately 98 million shares (the current issued share total is 229,508,582) relating to the four share swap companies, explained in my letter of 7th May, this equates to about 3.5p per share in cash and quoted investments and in excess of 8 p of net assets per share. In addition we are actively seeking the return of further funds owned but not currently held by the group.

Following a review of the commercial arrangements the directors of London Asia Capital plc and the directors China IPO plc have agreed in principle to terminate the contract signed earlier in the year. The 10 million options granted to China IPO at 5p per share remain in place. These changes will have no effect on the structure or operation of the Board of London Asia Capital plc.

In summary, your Board is delighted at that progress we have made so far and continue to make on behalf of shareholders and look forward to providing further information at the forthcoming AGM.

Your sincerely

Keith Negal

Chief Executive