Strategic Investments and Loan Note Conversion

31 July 2014

Insetco plc

("Insetco" or the "Company")

Strategic Investment, Loan Note Conversion and Issue of Equity

The board of Insetco is pleased to announce that it has acquired 10 per cent. of a Canadian financial services business, 1299040 Ontario Inc, for consideration of £60,000.

1299040 Ontario Inc has recently been formed with the intention to place and structure life settlement backed bonds aimed at the North American market. It has attracted a number of investors and owns a number of life settlement policies. It is the opinion of the board that the relationship with 1299040 Ontario Inc will provide the Company with opportunities to participate in the structuring of financial products.

Loan Note Conversion

The Company advise that it has received a request to convert a further £26,200 of convertible loans into 104,800,000 shares.

Following this conversion, the Company will have a total of £127,500 of convertible loans outstanding.

Issue of Equity

Application has been made for admission of 104,800,000 new ordinary shares in the Company to the London Stock Exchange which is expected to occur on or around 6 August 2014. The new ordinary shares will rank pari passu with the existing ordinary shares.

Total Voting Rights

Following the issue of equity described above, the so enlarged issued share capital of the Company will comprise 718,783,096 ordinary shares of £0.00001 each. Each ordinary share carries the right to one vote at general meetings of the Company. The Company does not have any ordinary shares in treasury.

This 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.