Potential placing and proposed new dividend policy

10 December 2014 Crystal Amber Fund Limited (the "Fund" or the "Company") Potential placing and proposed new dividend policy Potential placing The Board is considering a secondary issue of new ordinary shares in theCompany ("Shares") (the "Placing") to facilitate further investmentopportunities, in the light of the Company's recent performance. By way ofbackground, the Company delivered a 68.5 per cent NAV total return in the threeyear period to 4 December 2014 and a 85.1 per cent. increase in the Share priceover the same period. Accordingly, the Board, the investment manager and investment adviser believethat the Fund is appropriately positioned to continue to deliver attractivereturns, through its focus on special situation holdings which are moredependent upon self-help and active engagement than upon macroeconomicrecovery. Preliminary discussions have therefore been initiated with certain ofthe major shareholders regarding the potential to finance further investmentopportunities through a secondary issue of Shares. The Board believes that byincreasing the size of the Fund, it will be able to acquire larger holdingsoffering the potential to increase its influence, invest in larger companieswith increased liquidity and help drive down further the Fund's total expenseratio. In light of positive feedback from these discussions, the Board has instructedthe Fund's advisers to give consideration to the implementation of the Placing.The Board intends that any such secondary issue would be priced at a priceequal to at least the prevailing NAV per share. As at 30 November 2014, the NAVper share was 150.07p, which equated to a market capitalisation ofapproximately £113 million. The Board also intends to continue the discountmanagement policy, through the implementation of the Fund's Share buybackprogramme, for the foreseeable future, subject to the Board's discretion andthe requirements of the AIM Rules. The Fund's advisers intend to discuss the potential for a secondary issue ofShares with other holders of Shares ("Shareholders") and with potential newinvestors and a further announcement in relation to the Placing and theobtaining of the requisite approval of Shareholders will be made in due course. Proposed new dividend policy The Company's dividend policy is to distribute to Shareholders as a dividend aproportion of the income received from the Company's portfolio holdings, withthe level of dividend receipts therefore expected to vary based on thecomposition of the portfolio from time to time. In respect of each of the twofinancial years ended 30 June 2014, the Board declared a dividend of 0.5p perShare. The dividend policy, however, also states that the Company will in certaincircumstances also have the ability to make distribution payments out ofrealised investments if considered to be in Shareholders' interests. At 30 June 2014, the Company had retained earnings of £41.8 million. In view ofthe accumulated realised gains of the Company, the Board has now resolved tomodify the dividend policy such that it now intends to increase the level ofdividends paid to Shareholders with effect from 1 January 2015 for theforeseeable future. Accordingly, subject to the conditions set out below, theBoard intends to recommend a dividend of 2.5p per Share in respect of the sixmonths ending 30 June 2015, which will be payable in or around September 2015and an interim dividend of 2.5p per Share in respect of the six months ending31 December 2015, making a total of 5p per share for the 2015 calendar year,which on the basis of the current NAV would represent a dividend yield ofapproximately 3.3 per cent. At the time of the declaration of any futuredividend, the Board will take account of the accumulated retained earnings aswell as the unrealised gains and losses at the time. Before recommending any dividend, the Board will also consider the capital andcash position of the Company and the impact on such capital and cash by virtueof paying that dividend. Before paying any dividend, the Board must resolve andcertify that the Company will, immediately after payment, satisfy the solvencytest prescribed by Guernsey Company law. The projected dividends set out above are intentions only and do not compriseprofit forecasts. There can be no assurance that these intentions can or willbe met and they should not be seen as an indication of the Company's expectedor actual results or returns. Accordingly investors should not place anyreliance on these intentions in deciding whether to invest in or acquire Sharesnor assume that the Company will make any distributions at all. For further enquiries please contact: Crystal Amber Fund LimitedWilliam Collins (Chairman)Tel: 01481 716 000 Sanlam Securities UK Limited - Nominated AdviserDavid Worlidge/Simon ClementsTel: 020 7628 2200 Numis Securities Limited - BrokerNathan Brown/Hugh JonathanTel: 020 7260 1426 Crystal Amber Advisers (UK) LLP - Investment AdviserRichard BernsteinTel: 020 7478 9080