Issue of unsecured loan notes and equity

5 February 2015

AFH FINANCIAL GROUP PLC

("AFH" or the "Company")

Issue of £2.14 million of unsecured loan notes and subscription for equity to raise £207,000 to accelerate growth of AFH

The Board of AFH, a leading financial planning led investment management firm, is pleased to announce that, further to the announcement of 16 December 2014, the Company has, as of today, issued a total of £2.14 million of unsecured loan notes (the "Notes") to investors following further applications from investors being received in January 2015 and receipt of cleared funds. As a result, the Company has also issued warrants to these noteholders to subscribe for, in aggregate, 428,400 new ordinary shares in the Company exercisable at a price of £2.00 per new ordinary share.

In addition, the Company has today issued and allotted 137,997 new ordinary shares at a price of 150p per share (the "New Ordinary Shares") to eight advisers of the Company, none of whom are currently existing shareholders. Application has been made to the London Stock Exchange for admission of the New Ordinary Shares to trading on AIM ("Admission"). It is anticipated that Admission will become effective and that dealings in the New Ordinary Shares will commence on 6 February 2015. The issue of the New Ordinary Shares has been carried out within the Company's existing share authorities.

The proceeds from the issue of the Notes and the New Ordinary Shares will be used by AFH for general corporate purposes, in particular in pursuit of its stated strategy of continuing to grow its business through strategic acquisitions outside of its traditional core geographical locations.

Following the issue of the New Ordinary Shares, the issued share capital of the Company will comprise of 19,461,254 ordinary shares of 10 pence, each with one voting right. The Company does not hold any ordinary shares in treasury. Therefore the total number of ordinary shares and voting rights in the Company is 19,461,254.

The above figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Further details of the terms of the Notes are set out in the information memorandum published by the Company on 1 December 2014, a copy of which is available on the Company's website (www.afhfinancialgroup.com), and in the announcement released by the Company on 16 December 2014.

Enquiries:

AFH Financial Group PLC 01527 577 775

Alan Hudson, Chief Executive Officer

Paul Wright, Chief Financial Officer

www.afhfinancialgroup.com

Allenby Capital Limited 020 3328 5656

(Nominated Adviser and Broker)

Nick Naylor

Chris Crawford

Nick Athanas

Yellow Jersey PR Limited 07768 537 739

Dominic Barretto

Kelsey Traynor