Dear Shareholder

At a board meeting on Monday 10th June there was an attempt made by Toby Parker and Francesco Gardin to remove Sir Jeremy Hanley and myself from the Board of Directors. That board meeting became necessary following service of a written notice last week from Toby Parker and Francesco Gardin purporting to terminate, on behalf of the Company, the DB Consultants Limited Consultancy contract on the alleged grounds of Sir Jeremy Hanley's alleged incapacity for an aggregate period of 120 days in a 52 week consecutive period. Sir Jeremy denies in the most strenuous terms that he has been incapacitated as described and made this position clear at the board meeting yesterday and the notice of purported termination was sent without discussion or the authority of the Board.

As a result of their attempt to gain control of the Board in this fashion, both Toby Parker and Francesco Gardin have been suspended from their positions, three new Directors have been appointed and the attempt to remove Sir Jeremy and myself has been defeated. The three new directors appointed are Mr Fenton Higgins FCA, Mr Peter Hewitt JP, FCSI, FRSA and Mr Stanley Simmonds. Full CV's will be published shortly on the website.

It is my firm view that it is up to Shareholders to decide who they wish to be Directors of their company and accordingly the Board shall be convening a Shareholders' General Meeting in the near future where all Directors will be required to stand for election to the Board and Shareholders will make their decision. Before the meeting, and after further investigations, I will write to Shareholders with a full account of these events and my recommendations on the composition of the Board. In addition, and after a further review that I have just initiated, I hope that we will be able to publish the Company Accounts for 2012 and provide an update on progress.

David Buchler
Chairman
London Asia Capital plc