15 May, 2012

Dear Shareholder

I am very aware that I have not been in communication with you recently, but whilst progress has been made, there is little tangible evidence of the effort that has been made by all parties concerned. The overheads of LAC have been seriously reduced both for 2011 as well as on an ongoing basis, principally as a result of the success achieved in one of the litigation matters in the Far East.

More importantly, over the course of the last 12 months, I have personally made a number of trips to the Far East and met with representatives of Richpoint as well as Mr Yilong Chen, the chairman of Zhongying, our largest investment and located in mainland China. These discussions have been slow but steady, and I would like to believe that further developments over the summer will finally provide shareholders with the opportunity for a realisation.

The audited accounts will be will be published on the company web site and will be filed at Companies House before the end of June. I will keep shareholders updated as matters progress.

Yours sincerely

David Buchler

David Buchler
London Asia Capital plc
Tel: 0207 647 9900