Reconstruction of El Oro Ltd

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES, AUSTRALIA, CANADA OR THE REPUBLIC OF SOUTH AFRICA

JPMorgan Elect plc

Reconstruction of El Oro Ltd.

The Board of JPMorgan Elect plc ("Elect" or "the Company") is pleased to announce that heads of terms have been agreed with the board of El Oro Ltd. ("ELX") in connection with the proposed reconstruction of ELX announced today. ELX is a Guernsey incorporated investment company with net assets of £50.8 million as at 31 October 2018.

· It is expected that the liquidation of ELX, which will be subject to the approval of ELX's shareholders at a general meeting to be convened in the first quarter of 2019, will be effected through a scheme of reconstruction (similar in form to a reconstruction under section 110 of the Insolvency Act 1986) (the "Scheme"); and

· Pursuant to the Scheme and subject to the approval of Elect's shareholders, each of Elect's share classes would be made available as the rollover options for ELX shareholders, with JPMorgan Elect - Managed Income Shares as the default option. ELX shareholders will also be offered a cash option. Subject to take-up, the anticipated benefits of this proposal to shareholders of Elect include an increase in the future marketability and liquidity of the Company's shares and a reduction of the ongoing charges ratio.

The Company's shares will be issued pursuant to the reconstruction at a premium to NAV (on a cum income basis), not to exceed 1%. The premium to NAV is intended to defray the costs which will be incurred by Elect such that existing Elect shareholders will not suffer any NAV dilution as a consequence of Elect's participation in ELX's reconstruction. To the extent the costs are in excess of the issue premium, JPMorgan Asset Management Limited ("JPMAM") has agreed to make a contribution to meet the additional costs.

Further details on the proposed transaction, including the publication of a shareholder circular convening a general meeting to seek the required shareholder approvals and a prospectus by the Company, is expected to be made available early in 2019 subject to the receipt of all necessary regulatory approvals.

For further information:

Richard Plaskett

JPMorgan Funds Limited, Client Director

020 7742 3422

Faith Pengelly

JPMorgan Funds Limited, Company Secretary

020 7742 4000

Fin Bodman

JPMorgan Funds Limited, Structuring and Origination

020 7742 8651