LEF - Strategic Review Announcement

Ludgate Environmental Fund Limited ("Company")

Strategic review

The board of the Company is pleased to announce that the strategic review announced on 15 July 2011 has now been concluded. This follows consultation with shareholders and the Company's advisers, Matrix Corporate Capital LLP, and a detailed consideration by the Board of the Company's investment remit, historic performance, investment portfolio and future prospects.

As a result of the strategic review the Board recommends maintaining the Company's investment remit, as set out when the Company was launched in 2007 and communicated consistently since then. However, the Board is mindful of the limited liquidity available through the market, the fact that certain shareholders would appreciate short term liquidity and of the significant discount at which the Company's shares trade.

Having previously announced that up to £4 million would be made available to repurchase shares in the market the Board has concluded that it would be more appropriate to allocate this amount, along with a further £2.75 million, to a special dividend payment. Accordingly, the Company is now declaring a special dividend of 12 pence per share. The dividend will be paid on or about 31 October 2011 to those shareholders on the register at close of business on 21 October 2011, with an ex-dividend date of 19 October 2011.

It remains the Board's intention to employ the Company's share repurchase powers where shares can be purchased on terms which are beneficial to the Company, taking into account the availability from time to time of surplus cash to fund such purchases. Shares will only be purchased at a price which is accretive to net asset value per share and the timing of any such purchases will be entirely within the Board's discretion and subject to applicable regulatory considerations.

Shareholders will be invited to endorse the outcome of the strategic review by voting on the Company's investment policy at the forthcoming Annual General Meeting scheduled for 7 November 2011. Notice of the meeting is expected to be despatched to shareholders with the Company's Annual Report for the year ended 30 June 2011 on or about 21 October 2011.

For further information contact:

Ludgate Environmental Fund:

Chairman, John Shakeshaft +44 (0)1534 609 233

Ludgate Investments Limited:

Bill Weil +44 (0)20 7621 5770

NOMAD - PricewaterhouseCoopers LLP:

Melville Trimble +44 (0)20 7213 8898

Broker - Matrix Corporate Capital LLP:

Paul Fincham +44 (0)20 3206 7175