Publication of Circular and Notice of EGM

FRM DIVERSIFIED ALPHA LIMITED

(the "Company")

2 November 2011

PUBLICATION OF CIRCULAR AND NOTICE OF EXTRAORDINARY GENERAL MEETING

Following the announcement made by the Company on 1 September 2011, and following discussions with the Company's Manager, advisers and major shareholders, the Directors of the Company have decided to recommend to Shareholders that the Company be placed into liquidation. The Company has today published and posted a Circular to its Shareholders including recommended Proposals for the voluntary winding-up of the Company. The Proposals are subject to Shareholder approval. The Circular also contains Notice of Extraordinary General Meeting of the Company to be held at Royal Chambers, PO Box 173, St Julian's Avenue, St Peter Port, Guernsey GY1 4HG at 11.00a.m. on 5 December 2011.

At the Extraordinary General Meeting a special resolution will be put to Shareholders to approve the following Proposals:

(a) that the Company make an application to the UKLA for the cancellation of the listing of its Shares on the Official List and an application to the LSE for the cancellation of the admission to trading of its Shares on the LSE's Main Market for listed securities;

(b) to appoint the Joint Liquidators and to place the Company into voluntary winding-up;

(c) that the remuneration of the Joint Liquidators be determined by reference to the time properly given by them and their staff in attending matters prior to and during the winding-up, subject always to any prior agreement or quotation made between the Company and the Joint Liquidators; and

(d) to resolve that the Company's books and records be held to the order of the Joint Liquidators.

In contemplation of a potential liquidation, the Company has appointed John Renouf as a Director for the purposes of providing the Company with a serving director to comply with the Companies (Guernsey) Law, 2008, as amended. Mr Renouf, who will not draw a fee during his time of service as Director of the Company, is also an employee and director of the Manager. Conditional upon the special resolution being passed, David Warr, Geoffrey Marson and Nigel de la Rue will resign as Directors of the Company. Provided that the Joint Liquidators are appointed before 31 December 2011, the Company will not be required to have an annual audit. The Joint Liquidators will require the Company's auditors to perform some agreed-upon procedures at the date of liquidation, but these will not be as onerous as a full audit. This will maximise the cost-effectiveness of the Proposals, more details of which are set out in the Circular.

Expected Timetable

Unless otherwise defined, capitalised terms used in this announcement will have the same meaning given to such terms in the Circular.

Enquiries:

Financial Risk Management Limited

Lara Lavery 020 7968 6182

J.P. Morgan Cazenove

William Simmonds 020 7588 2828