Completion of Acquisition

Palace Capital plc

Completion of Acquisition

5 October 2011

The Board of Palace Capital plc (AIM: PCA) is pleased to announce that, further to the passing of all resolutions proposed at the General Meeting on 3 October 2011, all of the conditions for completion of the Acquisition Agreement have been met and the Acquisition of Hockenhull Estates Limited has now completed.

All definitions in this announcement have the same meaning as those set out in the Admission Document unless stated otherwise.

Enquiries:

Palace Capital Plc

Neil Sinclair, Managing Director

Tel: +44 (0) 7785 226666

Fairfax I.S. PLC

Katy Birkin/Ewan Leggat

Tel: +44 (0) 20 7598 5368

Lehmann Communications plc

Ronel Lehmann

Tel: +44 (0) 20 7266 3020