Portfolio Update

2 October 2019

Hadrian's Wall Secured Investments Limited

Portfolio Update

Further to the announcement made by Hadrian's Wall Secured Investments Limited (the "Company") on 23 May 2019, 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") which separately 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 for working capital and capex.

BOFL has entered into a strategic partnership with the SDL Group to operate the manufacturing facilities of BOFL. The agreement is for an initial three years with prospective extensions. SDL was founded in 2007 and is an established manufacturer and distributor of biomass fuel products and related renewable energy services across the UK. The agreement with BOFL increases SDL's UK manufacturing capacity. The Company's investment in BOFL is currently £6.6 million.

BPFL, in respect of which the Company's investment is £10.7 million, is now engaged in ongoing discussions and due diligence to enter into a joint venture or partnership. These discussions have not progressed at the pace previously anticipated, however, discussions are continuing, and Hadrian's Wall Capital Limited, the Company's investment adviser, (the "Investment Adviser") remains optimistic that progress will continue to be made with a favourable outcome in the near term.

The Board, on advice from the Investment Adviser, considers that the successful completion of the agreement between BOFL and SDL reduces the risk of material loss to the Company in respect of BOFL. If comparable arrangements for BPFL are not completed in a satisfactory manner, the outcome in relation to the Company's investment in BPFL would be uncertain and the Company could be exposed to the risk of a material loss.

The Investment Adviser remains of the view that individual case loss reserves continue not to be required in respect of either of these investments at this time. Nevertheless, the Company is maintaining its general loss provisions in connection with BPFL at £1.4 million, and BOFL at £1.8 million. The Investment Adviser does not anticipate any impact on the Company's ability to continue to meet the dividend target on the Ordinary Shares at this time.

The Investment Adviser and Board continue to monitor the situation and expect to provide periodic updates.

Contact Details

Hadrian's Wall Capital Limited (Investment Adviser)

Ron Miao / Mike Schozer

Telephone 020 3026 8620

Winterflood Investment Trusts (Corporate Broker)

Joe Winkley / Neil Morgan

Telephone 020 3100 0000

LEI: 213800ABN7VKMVNOLG14

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.