Result of AGM, placing of shares

31 August 2010

Merchant House Group Plc ("Merchant House" or the "Company")

Result of AGM, appointment of Chief Executive and placing of new Ordinary Shares

Merchant House announces that at the Annual General Meeting of the Company (the "AGM") held earlier today all of the resolutions set out in the notice of that meeting were duly passed.

The Company also announces that James Holmes steps down as Chief Executive and becomes Chairman from today. Christopher Day has been appointed a Director and Chief Executive whilst Martin Eberhardt retires today as non-executive Chairman in order to take on an expanded Group finance function.

Prior to joining Merchant, Christopher Day, was Founder and Chief Executive of PCE Investors Limited which had controlled fund assets of £2 billion. Prior to that, he was Managing Director of Dresdner Bank's Far East asset management business running 190 staff in seven countries investing some US$2 billion. For further details in relation to Mr. Day required by the AIM Rules, see the appendix to this announcement below.

Chairman James Holmes said, "We are very fortunate to secure Christopher given his strong track record. I welcome him to the team and look forward to taking the Group forward with him."

The Company has today issued and allotted 444,578,898 new Ordinary Shares ("First Tranche Shares") pursuant to proposals described in a circular to shareholders dated 3 August 2010 and subject of certain resolutions passed at the AGM (the "Circular" or the "Proposals", as appropriate). Application has already been made to have these shares admitted to trading on AIM. Admission is expected to take place, and dealings are expected to commence, on 2 September 2010. A further 404,497,619 new Ordinary Shares will be issued and allotted pursuant to the Proposals once FSA approval has been received for the issue of same ("Second Tranche Shares"). The date for admission to AIM of the Second Tranche Shares will be announced in due course.

The Company further announces that it has agreed to issue 30 million new Ordinary Shares of 0.01p each at a price of 0.05p per share ("New Ordinary Shares") pursuant to a placing raising £15,000 for the Company. Application has been made to the London Stock Exchange for the New Ordinary Shares together with a further 108,870,967 new Ordinary Shares (issued pursuant to the Proposals) to be admitted to trading on AIM . Admission is expected to take place, and dealings are expected to commence, on 7 September 2010.

Following the placing referred to above and the issue of First Tranche Shares, the issued share capital comprises 826,961,485 Ordinary Shares. There are no shares in treasury and there is no other class of share in issue which has voting rights. Consequently the Company's total number of voting rights is 826,961,485 and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the FSA's Disclosure and Transparency Rules.

Enquiries:

Merchant House Group Plc

James Holmes

Tel: 020 7332 2200

Shore Capital and Corporate Limited

Pascal Keane

Tel: 020 7408 4090

Appendix

Christopher Day has held the following directorships in companies or partnerships in the past five years:

There are no further details in relation to the above appointment which require disclosure under paragraph (g) (iii) to (viii) of Schedule 2 to the AIM Rules.