Conditional issue of equity

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATIONS (EU) NO. 596/2014 ("MAR"). IN ADDITION, MARKET SOUNDINGS WERE TAKEN IN RESPECT OF THE MATTERS CONTAINED IN THIS ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN PERSONS BECAME AWARE OF SUCH INSIDE INFORMATION. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION.

19 March 2019

Photonstar LED Group PLC

("Photonstar" or the "Company")

Conditional issue of equity

The Company is pleased to announce that it has conditionally raised £200,000 (before expenses) via the placing of 1,666,666,666 new ordinary shares of 0.01p each ("Ordinary Shares") with new and existing shareholders (the "Placing Shares") at a price of 0.012p per Placing Share (the "Placing"), subject to the passing of Resolutions 1, 2 and 4 at the Company's General Meeting on 5th April 2019. Moreover, the Company is also pleased to announce that existing shareholder Antos Glogowski is maintaining his shareholding of the Company at 14.22%.

The Company shall issue placees with two warrants for each Placing Share (the "Placing Warrants"). The Placing Warrants shall have an exercise price of 0.02p and a life of 12 months. Any outstanding Placing Warrants shall convert into Ordinary Shares at re-admission of the Company's shares to trading following the expected completion of a Reverse Takeover.

The net proceeds of the Placing will provide the Company with further funds to enable the board of directors (the "Board") to carry out a reverse takeover of a suitable target.

Application will be made for the Placing Shares, which will rank pari passu with the Company's existing Ordinary Shares, to be admitted to trading on AIM ("Admission"). Admission is expected to occur at 8:00 a.m. on 6th April 2019.

 For further information:

PhotonStar LED Group Plc (www.photonstarled.com) +44 (0)20 3198 2554

Martin Lampshire, non-executive Director

Allenby Capital Limited (nominated adviser) +44 (0)20 3328 5656

John Depasquale / Nick Naylor

Peterhouse Capital Limited (sole broker) +44 (0)20 7469 0930

Lucy Williams / Duncan Vasey

END