20 June, 2013

Dear Shareholder

Following the information that I posted on our website on 11 June 2013 I should now like to provide shareholders with an update. I have convened a Board Meeting for next week at which I will recommend to the Directors that a General Meeting of the Company's Shareholders be convened for no later than the end of July.

I will be proposing that all the current Directors stand for election, whether or not required by the Articles, so that shareholders can decide the composition of the Board going forward. My intention is to ask shareholders to support the election of Sir Jeremy Hanley, Fenton Higgins, Peter Hewitt, Stanley Simmonds and myself and to oppose the election of Toby Parker and Francesco Gardin. When I write to Shareholders formally convening the General Meeting I will set out in detail why I feel I must oppose the continuation of Toby Parker and Francesco Gardin as Directors of the Company.

The events of the last two weeks have brought to a head the need for shareholders to decide the direction they wish the Company to take and who they wish to lead it. Since my appointment in 2011 I have tried my best to respect the interests of all shareholders and stakeholders. The previous Board, which included Toby Parker and Professor Gardin, always appeared to seek to divide shareholders into two groups and to fight the Company's largest shareholder, Richpoint Limited, through the press. This clearly did not work and any attempt to revive it appears equally doomed to failure.

My approach has been different and, as a Director and Chairman, I have spent considerable time over the last two years, visiting the Far East on many occasions, trying to rebuild the broken relationship between Richpoint and our Chinese joint venture partner on the one hand and LAC and its other shareholders on the other. No LAC shareholder is going to see any return unless there is a consensual agreement that respects the rights and obligations of all parties. Sir Jeremy Hanley and I feel we now have a way forward for shareholders which would allow for the funds and assets of the company to be appropriately distributed to shareholders.

This approach is essential to the ultimate success of any endeavour to provide shareholders with a way forward to realise value from their investment. In the period leading up to the General Meeting I will continue to do all I can to enhance the prospects of shareholder value being returned but we will make no major decisions of principle until shareholders have made their decisions on the composition of the Board.

I am really grateful to the many shareholders who have indicated their support to me in the last week or so and I will continue to work for all shareholders' best interests at all times.

David Buchler
London Asia Capital plc