Approval of Management Reorganisation

06th October 2010

Further to the RNS announcement made on 2 August 2010, the Company is pleased to announce that the Jersey Financial Services Commission has given its consent to the proposed management reorganisation. As a result of the reorganisation Ludgate Fund Management (Environmental) (Jersey) Limited will cease to be the Company's investment manager. Instead, the Company's board will make investment decisions, based on advice received from Ludgate Investments Limited, the Company's current investment adviser.

The revised investment advisory agreement, which is on terms substantially the same as the former investment management agreement and was conditional on JFSC approval, came into effect on 27th September 2010.

The Board of the Company wish to update investors on the way in which the Fund's assets have been held since its launch.

When the Company was established BNP Paribas Securities Services Custody Bank Limited ("BNP") was appointed as custodian. However, the Board of the Company determined that a more cost effective safe custody arrangement could be effected by keeping cash balances in a diverse range of deposit accounts, shares certificates or equivalent evidence of title in investee companies with State Street (Jersey) Limited, the Company's administrator and listed securities with Walker Crips plc, the Company's stockbroker. Accordingly, the administrator and Walker Crips plc have been responsible for the safekeeping of the Company's investments since admission and will continue to do so until further notice.

The schedule below sets out the split of responsibility for the safekeeping of the Company's assets in percentage terms as at 30th June 2010:

%

Banks (cash) 36.42

Administrator 50.95

Walker Crips 12.63

The Jersey Financial Services Commission have consented to the termination of the formal appointment of the custodian. Whilst the decision of the Board of the Company not to entrust the Company's assets with BNP was contrary to the statements made in the Company's admission document, the Board of the Company believe that the existing custody arrangements in place have been and will continue to be adequate in accordance with section 1.7 of the Jersey Listed Fund Guide.