Trading Statement

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, INTO ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. THIS ANNOUNCEMENT IS NOT INTENDED TO, AND DOES NOT, CONSTITUTE OR FORM ANY PART OF AN OFFER TO SELL OR AN INVITATION TO PURCHASE OR SUBSCRIBE FOR ANY SECURITIES OR THE SOLICITATION OF AN OFFER TO BUY OR SUBSCRIBE FOR ANY SECURITIES AND NOR SHALL THERE BE ANY SALE, ISSUANCE OR TRANSFER OF THE SECURITIES REFERRED TO IN THIS ANNOUNCEMENT IN ANY JURISDICTION WHERE TO DO SO WOULD BE IN CONTRAVENTION OF APPLICABLE LAW.

18 July 2011

Raven Russia Limited ("Raven Russia" or the "Company")

Trading Update

Introduction

Following the Company's announcement on 31 May 2011, Raven Russia expects to publish a prospectus this week in connection with the proposed admission of its Preference Shares to the Official List of the UK Listing Authority as a Standard Listing and to trading on the London Stock Exchange's Main Market for listed securities.

The prospectus will contain the Trading Update set out below.

Trading Update

The markets in which Raven Russia operates are continuing to see high levels of tenant demand. In Moscow the vacancy rate for Grade A warehousing is below 3 per cent. and this is causing rents to rise.

These improving market conditions are reflected in the half year valuations of the property portfolio undertaken by Jones Lang LaSalle. They show an increase in the gross value of the investment portfolio from $943 million at 31 December 2010 to $1,078 million at 30 June 2011, including capital expenditure of $30 million, a valuation uplift of $104 million (11 per cent.) since the year end. Investment property under construction (including additional phases of existing properties and land bank) is carried at $125.8 million (31 December 2010: $107 million) after capital expenditure of $12.9 million.

In all markets the Raven Russia group is seeing rents rise and yields tighten, driven by tenant demand and increased investor interest. Prime yields in Moscow are now around 11 per cent. and prime rents have increased to $120 per square metre. Yields remain high compared to emerging market peers. According to JLL, prime yields for warehouse properties in China are around 8.5 per cent.. In Eastern Europe they are at similar levels. The values above at 30 June 2011 imply a yield of 11.9 per cent. on the Group's completed portfolio when fully let. With interest rates remaining low across the globe, the prospect of a US Dollar denominated rent on a Grade A warehouse property, let on a five year lease at a double digit yield, must become increasingly attractive to investors. In addition, the Russian Government's intention to invest $1 trillion in infrastructure in the medium term should act as an additional catalyst to investment in regional Russian cities.

The investment property portfolio is now 84 per cent. let with a further 2 per cent. under pre let agreement ("PLA") or letter of intent ("LOI"). In the first six months of 2011 the Group has leased 188,000 square metres and annualised net operating income is now $112.5 million, rising to $114 million on conversion of PLAs and LOIs. Fully let, the portfolio has an estimated rental value of $128 million per annum.

In Moscow, at the Klimovsk project, the group has taken advantage of favourable market conditions to start the construction of 53,000 square metres of new Grade A warehousing for delivery in the first quarter of 2012. Work is progressing well and detailed negotiations with prospective tenants are expected in the last quarter of this year. The project should contribute an additional $6.4m to net operating income once fully let.

Tenant demand is expected to remain strong in the second half of 2011, driven by increasing consumer demand in Russia. The group continues to look at new investment opportunities but the returns from building additional phases on existing projects look more attractive at this time.

Further Details

A further announcement will be made on publication of the prospectus.

Enquiries

Raven Russia Limited Tel: + 44 (0) 1481 712955

Anton Bilton

Glyn Hirsch

Kinmont  Tel:+44 (0) 207 087 9100

Jonathan Gray

John O' Malley

Cardew Group Tel: + 44 (0) 207 930 0777

Tim Robertson

Alexandra Stoneham

Singer Capital Markets Limited (NOMAD) Tel: +44 (0) 203 205 7500

Corporate Finance- James Maxwell

Sales - Alan Geeves / James Waterlow

Matrix Corporate Capital LLP Tel: +44 (0) 203 206 7000

Corporate Finance - Malcolm Le May / Roger Clarke

Sales- Carl Gough

This announcement contains forward-looking statements that involve risk and uncertainties. The Group's actual results could differ materially from those estimated or anticipated in the forward-looking statements as a result of many factors. Information contained in this announcement relating to the Company should not be relied upon as a guide to future performance.

About Raven Russia

Raven Russia was founded in 2005 to invest in class A warehouse complexes in Russia and lease to Russian and International tenants. Its Ordinary Shares and Warrants are listed on the Main Market of the London Stock Exchange with a market capitalisation of approximately £360 million and the group operates out of offices in Guernsey, Moscow and Cyprus.

To date, completed a portfolio of circa 1 million square metres of Grade "A" warehouses in Moscow, St Petersburg, Rostov-on-Don and Novosibirsk. For further information visit the Company's website: www.ravenrussia.com