Publication of Fundraising Prospectus

British Smaller Companies VCT2 plc ("the Company")

Publication of Prospectus re: Offer for Subscription

The Company is seeking to raise up to £10 million by way of an Offer for Subscription of up to 14,539,007 Ordinary Shares. A prospectus relating to the proposed Offer for Subscription was issued on 27 October 2011.

A Copy of this document has been submitted to the National Storage Mechanism and is available to the public for viewing online at the following web-site address: http://www.hemscott.com/nsm.do. It can also be viewed on the Fund Manager's website http://www.yfmep.com.

For further information please contact:

David Hall YFM Private Equity Limited Tel: 0113 294 5039

Claes Spang Singer Capital Markets Limited Tel: 0203 205 7500