Manager's update regarding first quarter 2015

Terra Partners Asset Management Limited

Suite 8/5A Portomaso Tower

Portomaso Avenue

St Julian's STJ 4011 Malta

Telephone +356 2371 7000

Regulated by the Malta Financial Services Authority, Reg. No. C 56353

July 10, 2015

Terra Partners Asset Management Ltd. ("TPAM") presents its First Quarter 2015 Update to Shareholders regarding the activities of Terra Capital plc. ("TCA" or the "Fund") an AIM quoted investment trust investing globally in value opportunities, primarily in frontier markets.

The opinions expressed in this update represent the views of TPAM, the Fund's Investment Manager, at the time of its preparation. All reasonable precautions have been taken to ensure the accuracy of the information utilized and relied upon in preparing this update and which are provided herein, and Terra believes this information to be reliable; however no representation or warranty about the accuracy of the information contained in this report is made or is to be implied. The information reported herein does not represent all of the information Terra had available, or which it relied upon, when making its initial and continuing investment decisions and therefore this update will necessarily be incomplete and/or condensed. Terra reserves the right to amend this report and its opinions at any time. Note that investments in Emerging and Frontier markets usually suffer from liquidity problems, and are often affected by governmental interference in the free market, local politics and vagaries in commodity and currency prices; therefore, their prices can be very volatile. This means that it can be difficult to acquire and subsequently sell the shares noted in this, and prior, updates. This report is for information purposes only. It is not intended as an offer or solicitation regarding the purchase or sale of any security or investment vehicle. All solicitations or offers are on the public market of the AIM Section of the London Stock Exchange and occur solely by reference to the document titled "Tender Offer to Purchase Ordinary Shares at the Tender Price and Restructuring and Amendment to the Directors' Incentive Plan and Change of name to Terra Capital PLC and Notice of Extraordinary General Meeting" (the "Circular") as amended by resolutions passed at the January 26, 2015 EGM. Both documents are accessible on the Fund's website www.terracapitalplc.com in the "Investor Center" tab under the Documents and Announcements section of the file "AIM Rule 26". This website contains important information which may supplement, modify or differ from the information contained herein and no prospective investment decision should be considered before careful reading of the documentation found on the Fund's website. All current and prospective investors should be aware that PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

To supplement this update, we advise shareholders and others that TCA previously announced that the estimated unaudited net asset value ('NAV') per share on 30 April 2015 was US$0.981, an increase in NAV of 4.50% over the prior month.

The Fund undertakes its activities in line with its strategy to provide high absolute returns by investing in under-evaluated companies which its Investment Manager, Terra Partners Asset Management Limited, believes present significant deep value opportunities. Due to market inefficiencies, the Fund and its Investment Manager believe that frontier markets provide many such prospects.

TCA's 1st Quarter Return & Portfolio:

The Fund's NAV was 0.9394 at March 31 2015 compared to 0.9789 as of December 31 2014, resulting in a net NAV return of -4.04% for the quarter. The Fund paid out its 2014 declared dividend of 0.0372 € per share in February, representing a 4.28% dividend on TAC's December 31 2014 price of .87 per share. This resulted in a total return for the Fund's NAV of -0.24% for the first quarter.

The Fund's equity exposure increased from 81.01% at December 31 (including its commitment to Terra Argentine Fund) to 92.08% at March 31.

Europe:

The Fund's European exposure increased from 23.24% to 25.18%, making Europe the largest regional allocation. The Fund increased four current positions, trimmed one and liquidated another. Investments were increased in Italy, Serbia and Bulgaria. The Fund's holding in Switzerland was reduced and the lone holding in Greece was liquidated.

Asia:

The Fund's holdings in Asia increased from 17.93% to 19.59% on additional investments in China and Kazakhstan.

Middle East:

The Fund's exposure to the Middle East rose from 15.92% to 16.98% on further investment in Lebanon and a new position in Oman. There were no sales in this area during the quarter.

Africa:

The allocation to Africa increased from 9.08% to 11.81% on additional investments made in Tunisia and South Africa. The Fund subscribed to two rights offerings during the quarter and initiated one new position in Africa. The Fund continued to sell shares of Housing Finance (Kenya).

Americas:

Exposure to the Americas increased from 14.84% to 18.52% on both strong performance and additional investments in Panama and Peru.

Fund Details:

The following table details the Fund's holdings, changes from the prior quarter, and the local currency performance of each company's shares over the quarter.

Respectfully Submitted by: 

Terra Partners Asset Management Limited

Suite 8/5A, Portomaso Tower, Portomaso Avenue,

St. Julian's STJ 4011 Malta

Regulated by the Malta Financial Services Authority, Reg. No. C 56353

Contact: Galileo Fund Services Limited (Administrator)

Ian Dungate or Suzanne Jones

+44 1624 692600

Panmure Gordon (Nominated adviser and corporate broker)

Paul Fincham or Jonathan Becher

+44 20 7886 2500