Update re Tender Offer and Notice of EGM

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

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

Proposed Purchase of 1 in every 62 Ordinary Shares of 1p each in the Company ("Ordinary Shares")

at 58p per share by way of a tender offer ("the Tender Offer")

Notice of Extraordinary General Meeting ("EGM")

On 31 August 2010, the Board of Raven Russia announced in its interim results for the six months ended 30 June 2010, that the Company intended to offer to purchase 1 in every 58 Ordinary Shares by way of a tender offer at a price of 54p per share. However, since that date the price of the Ordinary Shares has risen and the Board has amended the Tender Offer so that it now intends to offer to purchase 1 in every 62 Ordinary Shares at 58p per share.

The Tender Offer will also present tendering shareholders with an opportunity to sell more than their pro rata entitlement (up to their entire holding of Ordinary Shares) to the extent that other shareholders tender less than their pro rata entitlement. In such case, surplus tenders will be accepted in proportion to the number of additional Ordinary Shares tendered.

If the maximum number of 8,668,010 Ordinary Shares is acquired (assuming no valid exercise of the Company's warrants in the period), this will result in an amount of £5.03 million being paid by the Company to its shareholders. The Ordinary Shares purchased under the Tender Offer will be cancelled.

Raven Russia has today posted a circular to its shareholders and warrantholders containing full details of the Tender Offer and a notice of EGM convened for 11 am on Monday 25 October 2010.

The Tender Offer is open to all holders of Ordinary Shares on the Company's register at 6pm on Friday 22 October 2010, who may participate by tendering all or a proportion of their holding of Ordinary Shares at 58p per share. No Ordinary Shares will be purchased in relation to the Tender Offer unless the relevant resolution to be proposed at the EGM is passed.

Copies of the circular, tender offer forms and form of proxy will be submitted to the National Storage Mechanism and will shortly be available for inspection at www.Hemscott.com/nsm . In addition, the documents will be available on the Raven Russia website (www.ravenrussia.com/investor ) and may also be obtained from the Company Secretary.

Enquiries

Kinmont Limited is advising Raven Russia in relation to the Tender Offer and no one else and will not be responsible to anyone other than Raven Russia for providing the protections afforded to customers of KInmont Limited nor for providing advice in relation to the Tender Offer.

This announcement which has been issued by the Company and is the sole responsibility of the Company, has been approved only for the purposes of Section 21 of the Financial Services and Markets Act 2000 of the United Kingdom by Kinmont Limited, 5 Clifford Street, London W1S 2LG, a firm which is authorised and regulated in the United Kingdom by the Financial Services Authority.