Portfolio Update

23 May 2019

Hadrian's Wall Secured Investments Limited

Portfolio Update

Further to the announcement made by Hadrian's Wall Secured Investments Limited (the "Company") on 24 December 2018, the board of the Company (the "Board") is providing this update with respect to Biomass Premium Fuels Limited ("BPFL") and Biomass Optimum Fuels Limited ("BOFL") (BPFL and BOFL together being referred to as "Biomass") which acquired the assets of Arensis Energy Ltd, Entrade Energy Ltd and Arensis Energy One Ltd out of administration on 21 December 2018. The Company financed these acquisitions and provided additional capital to Biomass for working capital and capex.

BPFL has entered into a Heads of Terms agreement to establish a joint venture with a substantial UK company with extensive experience in the sector (the "JV") for the operation and management of BPFL. The parties have agreed to target completion of the JV by the end of July 2019. The parties are also discussing possible arrangements in connection with BOFL. The Company's investment amounts in BPFL and BOFL are £10.7 million and £6.7 million respectively and the Company anticipates providing additional funding to BPFL and BOFL prior to completion of the JV of up to £0.9 million and £0.5 million respectively.

The Board, on advice from Hadrian's Wall Capital Limited, the Company's investment adviser (the "Investment Adviser"), considers that the successful completion of the JV should mitigate the risk of loss to the Company and that individual case loan loss reserves are not required in respect of either of these investments at this time. Nevertheless, on advice from the Investment Adviser, and considering the uncertainty associated with the completion of satisfactory JV arrangements, the Company has increased its general loss provisions in connection with BPFL from £310,000 to £1.4 million, and BOFL from £199,000 to £1.8 million. The aggregate increase in the general loss provision of £2.7 million is equivalent to 1.9% of the last published net asset value per ordinary share. Assuming the JV arrangements are completed in a satisfactory manner, the Investment Adviser does not anticipate any impact on the Company's ability to continue to meet the dividend target on the Ordinary Shares, and further would expect to be able to reduce the general loss provisions in respect of BPFL and BOFL. If the JV arrangements are not completed in a satisfactory manner, the outcome in relation to the Company's investments in BPFL and BOFL would be uncertain and the Company would be exposed to the risk of a material loss.

Further details are expected to be provided in due course.

The information contained within this announcement constitutes inside information. The person responsible for arranging for the release of this announcement on behalf of the Company is Matt Falla of Praxis Fund Services Limited.

Contact Details

Hadrian's Wall Capital Limited (Investment Adviser)Ron Miao / Mike SchozerTelephone 020 3026 8620

Winterflood Investment Trusts (Corporate Broker)Joe Winkley / Neil MorganTelephone 020 3100 0000

Forward-looking statements

This press release may contain forward-looking statements with respect to the Company's future financial performance and position. Such statements are based on current expectations, estimates and projections of the Company and information currently available to the Company. The Company cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance and position to differ materially from these statements. The Company accepts no obligation to update the statements contained in this press release, unless required by law.