Subscription and Board Changes

9 September 2014

LP Hill Plc

("LP Hill" or the "Company")

Subscription to raise £405,000 gross and Board Changes

LP Hill (AIM: LPH), the AIM listed uranium, thorium, base and precious metals and gemstones exploration and development company operating in Madagascar, is pleased to announce that it has raised £405,000 before expenses, via a subscription for new ordinary shares by an existing substantial shareholder, and certain board changes.

Details of the Subscription

Kijani Resources Limited ("Kijani Resources"), an existing substantial shareholder in the Company, has subscribed for 1,000,000 new ordinary shares of 0.1 pence each in the capital of LP Hill (the "Subscription Shares") at a price of 40.5 pence per Subscription Share (the "Issue Price"), to raise approximately £405,000 before expenses (the "Subscription"). The Issue Price represents a discount of approximately 10 per cent. to the closing mid-market price of 45 pence per ordinary share on 8 September 2014 (being the latest practicable business day prior to the date of this announcement). The Subscription Shares will represent approximately 2.54 per cent. of the Company's enlarged issued share capital and the Subscription is conditional on admission of the Subscription Shares to trading on AIM ("Admission").

The net proceeds raised from the Subscription will be used to repay the group's existing indebtedness and for general working capital purposes. The Company anticipates raising additional equity and/or debt finance in due course in order to ensure that the group maintains an appropriate capital structure and is able to fund its ongoing working capital requirements and potential future development opportunities.

Application will be made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM. It is expected that Admission will become effective and that dealings in the Subscription Shares will commence at 8.00 a.m. on 15 September 2014.

Following the issue of the abovementioned Subscription Shares, the Company's issued share capital will consist of 39,441,403 ordinary shares with voting rights. The Company does not hold any ordinary shares in treasury and accordingly there are no voting rights in respect of any treasury shares. The Subscription Shares will be fully paid and will rank pari passu in all respects with the Company's existing ordinary shares.

The above figure of 39,441,403 ordinary shares may be used by shareholders in the Company 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, LP Hill under the Financial Conduct Authority's Disclosure and Transparency Rules.

Following Admission, Kijani Resources will be interested, in aggregate, in 8,180,000 ordinary shares, representing approximately 20.74 per cent. of the Company's enlarged issued share capital.

By virtue of Kijani Resources currently being a substantial shareholder in the Company, the Subscription constitutes a related party transaction for the purposes of Rule 13 of the AIM Rules for Companies.

Accordingly, the directors of LP Hill consider, having consulted with Strand Hanson Limited (the Company's Nominated Adviser), that the terms of the Subscription are fair and reasonable insofar as the Company's shareholders are concerned.

Board Changes

LP Hill is also pleased to announce the appointment of William Redford as a Non-Executive Director of the Company with immediate effect. Mr Redford joins the board as a representative of Kijani Resources.

Mr Redford is currently Managing Director of Mareeba Group Limited, a socially responsible investment organisation focused on renewable investment opportunities and sustainable technology and was formerly a licenced Gibraltar EIF Director. Mr Redford has more than ten years' experience trading vegetable oil, firstly for Frahuil S.A. and latterly for Phillip Brothers, the commodity trading division of Salomon Brothers, where he was head of the vegetable oil trading desk and had responsibility for arranging international shipments of over one million tonnes of oil annually and negotiated contracts with crushing plants and refineries. Mr Redford also worked for six years as an interdealer broker in the European Government Bond Market.

In addition, the Company announces that Roy Spencer has assumed the role of Non-Executive Director and Bernard Olivier has assumed the role of Executive Chairman, both with immediate effect.

Bernard Olivier, Executive Chairman, commented:

"We are delighted that William has joined the LP Hill Board. His valuable international business and investment experience will assist us in identifying and evaluating potential opportunities to expand the Company's asset portfolio in line with our stated strategy.

"The sizeable investment, via the Subscription, and support from Kijani Resources is also welcomed and we look forward to working with William, as their Board representative, going forwards as we endeavour to deliver long-term shareholder value."

For further information, please contact:

Additional information on Mr William Redford

The following additional information is provided in accordance with paragraph (g) of Schedule Two of the AIM Rules for Companies:

William Francis Redford (aged 56)

* - Mr Redford was, until 19 August 2013, a director of Advalorem Value Asset Fund Limited ("Advalorem"), a private company incorporated in Gibraltar. Chantrey Vellacott DFK LLP were appointed as administrators to Advalorem by the Supreme Court of Gibraltar on 27 January 2014.

As noted above, Mr Redford is a representative of Kijani Resources which following Admission will be interested in 8,180,000 ordinary shares, representing approximately 20.74 per cent. of the Company's enlarged issued share capital.

There is no other information that is required to be disclosed pursuant to paragraph (g) of Schedule Two to the AIM Rules for Companies.

-Ends-