Manager's update regarding fourth quarter 2014

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

  March 10, 2015

Investment Manager's Update to Shareholders regarding

Fourth Quarter 2014 Activities of Terra Capital plc. ("TCA" or the "Fund")

The opinions expressed in this update represent the views of Terra Partners Asset Management Limited ("Terra") 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. Please 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 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, and is not intended as an offer or solicitation with respect to the purchase or sale of any security or investment vehicle. All offers or solicitations are on the public market of the AIM Section of the London Stock Exchange and occur solely by reference to the information contained in 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 the resolutions passed at the EGM of January 26, 2015, both documents which 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.

TCA's 4th Quarter Return & Portfolio

The Fund ended 2014 with a net NAV gain of 5.93% from its Dec. 31, 2013 NAV and it increased its equity exposure from 73.24% at September 30, 2014 to 81.02% at December 31, 2014 (including its commitment to Terra Argentine Fund). The Fund's NAV was negatively affected in the fourth quarter when it declined from $1.0018 per share as of September 30, 2014 to $0.9789 at December 31, 2014 resulting in a 2.28% loss.

Europe

The Fund's exposure to Europe increased from 19.14% to 23.24%, making Europe its largest regional allocation, as the Fund added 5 new positions in the region, increased 2 other existing positions, and trimmed 2 holdings. Investments were initiated in Slovenia, Bulgaria, Russia and one other undisclosed market, with additions to current holdings in Ukraine and one other undisclosed market. Sales took place in Switzerland and Greece.

Certain positions and markets are not publically disclosed during the period the Fund continues its purchases in those stocks due to their low liquidity. The names of the stocks and further information will be disclosed when the Fund obtains its optimal position.

Asia

The Fund's holdings in Asia declined from 20.24% to 17.94% on sales in Australia, Georgia and Korea. The Fund initiated one new position, KCell, in Kazakhstan.

Middle East

The Fund's exposure to the Middle East rose to 15.92% on one new position in Qatar (Al Meera) and additions to its position in Lebanon (Solidere). There were no sales in this region during the quarter.

Africa

TCA's African allocation expanded from 7.04% to 9.08% as the Fund increased its positions in Tunisia following the victory of the secularists in the parliamentary elections and the Fund initiated positions in South Africa, which will not be disclosed at this time due to continued purchases and low liquidity in the names. The Fund continued to sell off shares in Housing Finance (Kenya).

Americas

The allocation to the Americas increased from 12.57% to 14.84% on the addition of Panama's Copa Airlines to the Fund. Terra Argentine Fund made its 3rd capital call in December, drawing down a further 15% of the commitment, bringing the total amount of called up capital to 40%.

Further Fund Details

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

Portfolio of Terra Capital PLC as of Dec. 31, 2014

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

Terra Capital plc. Howard Golden or Filip Montfort +356-2371-7000