Dear Shareholder

This is just a brief update to confirm that work towards a Section 110 proposal has been on-going. Documents are being prepared and discussions are taking place to ensure that the major shareholders in the Far East will be supportive. Once proposals are in an advanced stage they will be sent to all shareholders and an appropriate vote will have to take place to reflect shareholders views. I hope to be able to report more on this in the coming weeks.

David Buchler
Chairman
London Asia Capital plc