Share Buy Back Proposal

TAU CAPITAL PLC

(the "Company" or "Tau")

Share Buy Back proposal

Following the passing of the appropriate resolution at the Annual General Meeting held on 28 June 2011 the Board is authorised to purchase in the market up to 10 per cent of the Company's issued share capital.

The Board recognises the need to address the discount between the market price of the Company's shares and NAV and therefore intends to exercise its authority to buy back up to 10 per cent of the shares in issue with immediate effect. Any such purchase will only be made on a basis which would enhance the NAV per share.

In addition the Board intends to seek approval at the next annual general meeting to renew the share buy back authority and proposes to implement an ongoing buy back of at least 8 per cent of the issued capital on an annual basis subject to the discount to NAV being 10 per cent or greater.

--ENDS--

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