Related Party Loan

AIM: KLN

11 July 2012

The Kellan Group PLC

("Kellan", the "Company" or "Group")

Related party loan

Further to the announcement made on 29 June 2012 regarding the suspension of the Company's ordinary shares from trading on AIM, the Company announces that it has received a loan amounting to an aggregate of £310,000 from Paul Bell.

The loan is unsecured and does not accrue interest, arrangement fees or settlement fees. The funds have been used by the Company as interim working capital until the equity fundraising is completed.

Due to the fact that Paul Bell holds 23.8 per cent of the issued share capital of Kellan, and is therefore a substantial shareholder, the receipt of the loan constitutes a related party transaction as defined by the AIM Rules. The Directors, having consulted with Merchant Securities Limited, the Company's nominated adviser, consider that the terms of the loans are fair and reasonable insofar as Shareholders are concerned.

This transaction represents a temporary facility and clear intent from a substantial shareholder of the business while negotiations for the equity fundraising and debt refinancing process referred to in the announcement dated 29 June 2012 are finalised.

A further statement will be made in due course.

ENQUIRIES:

NOTES:

Kellan is a market leading recruitment business operating across a wide range of functional disciplines and industry sectors.

Kellan operates through a portfolio of premium brands within the currently fragmented recruitment sector. Currently, through its three recruitment brands, Berkeley Scott, Quantica and RK, Kellan has the capability and resource to recruit professionals into finance & accounting, information technology, supply chain & procurement, legal, retail, manufacturing, catering, hospitality and leisure.

Kellan currently operates through 16 UK offices, seven businesses and three brands

http://www.kellangroup.co.uk/