Market Update

Tau Capital Plc

("the Company" or "TAU")

Market Update

Following the resolutions passed at the Annual General Meeting on 24th July 2012, the Company is pleased to provide the following update: agreement has been reached with Compass Asset Management Limited ("CAM") to terminate the existing Management Agreement. CAM will relinquish all responsibilities for managing the portfolio of assets on 5 October 2012 and will be paid investment management fees in accordance with their existing contract up to 31 December 2012. CAM has also waived their right to exclusively manage the portfolio with immediate effect. The Directors of TAU wish to record their thanks to CAM for the service that they have provided to the Company since its launch.

Discussions are at an advanced stage with the appointment of 2 new advisors. Sturgeon Capital Limited ("Sturgeon") of 4 Bourlet Close London W1W 7BJ, England to act as the Investment Manager for the Company's public equity portfolio and the convertible bond investment with immediate effect. Sturgeon is a specialist manager of Central Asian investments and it has extensive experience of the stocks currently held by TAU. Capital Gate Securities Limited of, 22 Zhamakayev Street, B Almaty Kazakhstan to advise on the two private equity investments with immediate effect. Capital Gate is a licensed securities advisor, with its principal office in Kazakhstan with extensive experience with private equity investments in the country.

The Board of the Company has agreed that an initial return of capital will be made to shareholders. As part of an overall strategy, a return of capital to shareholders will be made as and when sufficient reserves are available and in such manner as the Board deem appropriate.

Further information about the appointment of the 2 new advisors and return of capital will be announced in due course.

Enquiries: Numis Securities Ltd Tel: +44 (0) 20 7260 1000

Nominated Advisor: Nick Westlake / Hugh Jonathan

Corporate Broker Alex Ham

IOMA Cynthia Edwards +44 (0) 1624 681381