Bridge Financing and Convertible Loan Stock Update

European Wealth Group Limited

("EWG" or the "Group")

Bridge Financing and

Convertible Loan Stock Update

European Wealth Group Ltd announces that, further to the announcement of 25 May 2017, it has secured a bridge financing facility for £5.25m (the "Facility"), which will be used to (i) redeem the £4.2m of quoted convertible loan stock with ticker EWGL.L (the "CLS") and all accrued interest thereon, and (ii) repay the £0.3m loan (including interest) to Clydesdale Bank (the "Clydesdale Loan"). The Facility is being provided by KPI (Nominees) Limited ("KPI").

The Facility is for a period of up to 90 days, with interest being charged every 30 days. The first 30 days attracts interest of 1% of the Facility, the next 30 days attracts interest of 1.25% of the Facility, and the final 30 days attracts interest of 1.5% of the Facility. In addition, EWG is paying an arrangement fee of 1.5% of the Facility and an exit fee of 1.5% of the Facility.

The Facility is secured on the assets of EWG, European Wealth Management Group Limited and the three main operating subsidiaries, European Financial Planning Ltd, European Investment Management Ltd and European Wealth Trading Ltd.

KPI is a wholly owned subsidiary of Kingswood Property Finance Limited Partnership ("Kingswood"), which is a private investment partnership wholly owned and controlled by Gary Wilder and Jonathan Massing. Formed in 2004, Kingswood has undertaken a range of long-term investments and financial transactions including: participating in real estate investments; private equity investments incorporating equity and loan capital to the SME sector; subscribing for equity warrants and options; dealing in financial assets; trading in listed equities, fixed income and currencies. Kingswood is managed by its General Partner, Kingswood Investment Partners Limited, which is authorised and regulated by the Financial Conduct Authority.

The Facility is intended to be a pre-cursor to a subscription and open offer for £9.3 million between EWG, KPI, and another investor (the "Subscription and Open Offer"), as outlined in the announcement of 25 May 2017. Negotiations are at a very advanced stage, albeit that a binding agreement has not yet been signed pending the finalisation of the remaining points of detail for the efficient roll-out and implementation of this proposed transformational equity refinancing of the Group. A further announcement detailing the agreed terms will be released in the near future.

The Facility must be repaid out of the proceeds of the Subscription and Open Offer and, in the event that the Subscription and Open Offer does not complete, a redemption fee of £1,050,000 (being 20% of the amount of the Facility) would be payable by EWG to KPI.

Following the redemption of the CLS, and further to the announcement of 25 May 2017, the Company confirms that cancellation of the CLS from trading on AIM will take place on 12 June 2017.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

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About European Wealth Group Limited

European Wealth Group Limited (AIM: EWG, EWGL) is the holding company for the integrated wealth management business, European Wealth Management Group Limited. Having commenced trading in 2010, European Wealth has two operating divisions, European Investment Management Limited ("EIM") and European Financial Planning Limited ("EFP"). Both are regulated by the Financial Conduct Authority. EIM has opted for Restricted Adviser status and EFP for Independent Adviser status. Today the Group's head office is in London with an expanding network of offices both in the UK and continental Europe. Core services offered by the Group are financial planning, corporate pension advisory and investment management in both equity and fixed interest instruments. For further information on European Wealth's wealth management and financial planning services, please go to www.europeanwealth.com