Caspian announces Placing

Caspian Holdings Plc

26 June 2012

Caspian Holdings Plc

("Caspian" or the "Company")

Caspian Announces Placing

Caspian Holdings (AIM:CSH) announces that it has completed a placing of 135,107,691 ordinary shares of 0.1p per share ("Ordinary Shares") at 0.325p per Ordinary Share to raise approximately £439,100 (the "Placing"). The net proceeds from the Placing will be used to commence construction of the metallurgical plant at the La Parrilla tailings project, to progress the Company's tungsten and gold drilling programmes and for general working capital purposes.

Application will be made for the new Ordinary Shares being issued in connection with the Placing to be admitted to trading on AIM which is expected to occur on 2 July 2012.

Related Party Transaction

The placees include Mr. Michael Masterman (Chairman of the Company), who has subscribed for 15,384,615 Ordinary Shares amounting to £50,000, and Dr. Byron Pirola (a director of the Company), who has subscribed for 30,769,230 Ordinary Shares amounting to £100,000. The participation in the Placing of Mr. Masterman and Dr. Pirola falls to be treated as a related party transaction under AIM Rule 13. The independent director, being Mr Michael Garland, having consulted with Grant Thornton Corporate Finance (the Company's nominated adviser), confirms that he is satisfied that the terms of Mr. Masterman and Dr. Pirola's participation in the Placing are fair and reasonable insofar as the shareholders of the Company are concerned.

Acquisition of Australian Iron Ore

Furthermore, following the announcement of 22 June 2012, 269,300,000 Ordinary Shares 0.30p per Ordinary Share will be issued in connection with the acquisition of Australian Iron Ore ("AIO"). Application will be made for the new Ordinary Shares being issued in connection with AIO to be admitted to trading on AIM which is expected to occur on 4 July 2012.

Following the issue of all new Ordinary Shares, the Company will have 1,373,187,580 Ordinary Shares in issue and:

- Mr. Michael Masterman (and related parties) will be interested in 728,558,625 Ordinary Shares in the Company, representing an interest of 53.06 per cent in the total voting rights; and

- Dr. Byron Pirola (and related parties) will be interested in 112,075,134 Ordinary Shares in the Company, representing an interest of 8.16% per cent in the total voting rights.

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