Manager's Update regarding second 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 17, 2015

Terra Partners Asset Management Ltd. ("TPAM") presents its Second Quarter 2015 Update to shareholders regarding the activities of Terra Capital plc. ("TCA" or the "Fund") an AIM listed Investment Company investing globally in value opportunities, primarily in frontier markets.

The opinions expressed in this document represent the views of Terra Partner Asset Management Limited ("TPAM"), the Investment Manager of Terra Capital plc. ("TCA"), at the time of its preparation. This document has been prepared from publicly available information, internally developed data and other sources believed to be reliable, and all reasonable precautions have been taken to ensure its accuracy; however no representation or warranty about the accuracy of the information contained in, or of any omissions from, this document or any supplementary information made available to any interested party or its advisers is implied, and any liability in respect of such information or omissions is hereby expressly disclaimed. Note that the information herein is not all of the information TPAM had available, or which it relied upon, when making its initial and continuing investment decisions. TPAM reserves the right to amend the information provided herein, and its opinions, at any time, and undertakes no obligation (express or implied) to provide any recipient with any further information or to correct any inaccuracies or omissions which may become apparent. Readers are advised that a fund managed by TPAM, the officers and employees of TPAM, and Directors of TCA currently own positions in TCA.

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 TCA's portfolio. This document is for information purposes only and 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 by reference to TCA's Offering Memorandum and 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 subsequent resolutions, primarily the one passed at the January 26, 2015 EGM. Documents are accessible on TCA's website www.terracapitalplc.com in the "Investor Centre" 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 documentation found on TCA's website. All current and prospective investors should be aware that PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

This document and its content are confidential and should not be distributed, published or reproduced (in whole or in part), and are intended for the use of the recipient only. Any other person or persons who receive a copy of this document should not act upon it and TPAM does not accept any liability or responsibility whatsoever for any actions taken by such persons in reliance on this document.

By accepting this document, you agree to be bound by the foregoing limitations.

TCA's 2nd Quarter 2015 Return & Portfolio

The Fund's NAV rose to 0.9672 at June 30, 2015 from 0.0.9394 as of March 31, 2015, resulting in a net NAV return of 2.96% for the quarter.

The Fund's investment level (equity, fixed income and hedging) decreased from 92.08% at March 31 (including commitment to Terra Argentine Fund) to 87.80% at June 30 due to decreases in its positions in Europe, Middle East and the Americas with only slight additions to the portfolio.

Europe

The Fund's exposure to Europe declined slightly from 25.18% to 24.10%, keeping it the Fund's largest regional allocation. The Fund increased its holdings in three current positions and reduced three positions. Investments were increased in Italy and Bulgaria while its holdings in Switzerland, Germany and Serbia were reduced.

Asia

The Fund's holdings in Asia remained stable at 19.16%. The Fund's holding in China was reduced while its position in Kazakhstan was increased.

Middle East

The Fund's exposure to the Middle East declined from 16.98% to 15.04% on sales in three of the Fund's four Qatari positions, one of which was liquidated entirely. One position in Qatar was increased, while current positions in Qatar, Lebanon and Oman were increased.

Africa

The allocation to Africa remained stable at 11.77%. The Fund's two positions in Kenya were reduced, while the Fund added one new position in Nigeria.

Americas

The portfolio's allocation to the Americas decreased from 18.52% to 16.90%. The Fund sold off a portion of one Argentine position which had increased substantially during the first half of the year, while adding a new position in Jamaica.

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