Notification to Shareholders: Adoption of FRS101

4 April 2016

Lombard Risk Management plc

("Lombard Risk" or the "Company")

Notification to Shareholders: Adoption of FRS101

Notification to shareholders on parent company financial statements: Adoption of Financial Reporting Standard 101 ("FRS101") - Reduced Disclosure Framework.

The financial statements of the Company, (the parent company of the Lombard Risk group of companies ("the Group")), for the year ended 31 March 2015 were prepared in accordance with UK Generally Accepted Accounting Practice ("UK GAAP"), and are set out on pages 54 to 59 of the 2015 Annual Report. The Company statements are presented separately from the consolidated Group financial statements which are set out on pages 27 to 53 of the Annual Report, which are prepared under International Financial Reporting Standards as adopted by the European Union ('IFRS').

Following the publication of FRS100, "Application of financial reporting requirements", by the Financial Reporting Council ('FRC'), UK entity accounts for the year ended 31 March 2016 are subject to a new accounting framework, and the Company is required to prepare its parent company financial statements for the most recent financial year (which ended on 31 March 2016) on one of the new bases permitted by the FRC. The Company proposes to adopt FRS 101 which provides for a reduced disclosure framework which will result in disclosures which are expected to be the same as, or follow very closely, the current UK GAAP accounting basis.

The Company's decision to adopt FRS101 does not require shareholder approval. However, the Company is required to notify all shareholders of this election and any shareholder or shareholders holding in aggregate 5% or more of the total allotted shares in the Company may object. Objections must be served in writing and delivered to the Company Secretary at the Company's registered office (7th Floor, 60 Gracechurch Street, London, EC3V 0HR) not later than 21 days from the date of this notice, i.e. prior to 25 April 2016.

This notification will apply on a continuing basis until such time as the Company notifies its shareholders of any change to its chosen accounting framework for the Company's financial statements.

The consolidated financial statements of the Group will continue to be prepared in accordance with IFRS and are unaffected by this new accounting framework.

For further information, please contact:

Lombard Risk Management plc Tel: 020 7593 6700

Alastair Brown, CEO

Nigel Gurney, CFO

Panmure Gordon (UK) Limited Tel: 020 7886 2500

Nominated Adviser and Broker

Adam James

Erik Andersen

James Greenwood

Newgate Tel: 020 7653 9850

Bob Huxford

Robyn McConnachie

Adam Lloyd