Rule 26

The information on this page is being disclosed for the purposes of AIM Rule 26.

Last updated on 30 January 2013

Company Description and Investment Proposition

The Company’s Investing Policy is to acquire interests in early stage oil and gas businesses and related service companies and assets based in Europe, the Middle East and Central Asia.

The proposed investments to be made by the Company may be either quoted or unquoted; made by direct acquisition or through farm-ins; may be in companies, partnerships, joint ventures; or direct interests in oil and gas projects. It is not intended to invest or trade in physical commodities except where such physical commodities form part of a producing asset. The Company’s equity interest in a proposed investment may range from a minority position to 100 per cent. ownership.

A particular consideration will be to identify investments which are, in the opinion of the Directors, under-performing, undeveloped and/or undervalued, and where the Directors believe that their expertise and experience, in conjunction with that of the investee company management, can be deployed to facilitate growth or unlock inherent value. The Directors will conduct initial due diligence appraisals of potential projects and, where they believe further investigation is warranted, intend to appoint appropriately qualified persons to assist. Investments in early stage and exploration assets are expected to be mainly in the form of equity and related instruments, with debt potentially being raised later to fund the development of such assets. Where the Company builds a portfolio of related assets it is possible that there may be cross holdings between such assets.

It is likely that a substantial portion of the Company’s financial resources will be invested in a small number of propositions or in just one investment which, depending on the circumstances, may be deemed to be a reverse takeover under the AIM Rules. Any transaction constituting a reverse takeover under the AIM Rules will also require Shareholder approval. The Directors have not, however, excluded the possibility of building a broad portfolio of assets.

The Company intends to be an involved and active investor particularly with respect to funding and corporate governance but also in closely monitoring the progress of business activities. Accordingly, where necessary, the Company may seek participation in the management or board of directors of an entity in which the Company invests with a view to improving the performance and use of its assets with the aim of achieving an upward re-rating of the value of those assets.

Given the time frame the Directors believe is required to fully maximise the value of an exploration project or early stage development assets, it is expected that the investment will be held for the medium to long term, although short term disposal of assets cannot be ruled out in exceptional circumstances.

The Company intends to deliver shareholder returns principally through capital growth rather than capital distribution via dividends, although it may become appropriate to distribute funds to Shareholders once the investment portfolio matures and production revenues are established. In the first few years the Company will seek to ensure that its investments move the value chain from exploration to development and production and to turn around underperforming, undeveloped and/or undervalued assets. If successful, the increase in value should be reflected by an increase in the Company’s share price.

Given the nature of the Company’s Investing Policy, the Company does not intend to make regular periodic disclosures or calculations of net asset value.

The Directors have many years experience in investing in early stage businesses between them. When suitable opportunities have been identified, the Directors may appoint qualified consultants to provide advice to the Directors or use their own expertise to carry out feasibility studies on the potential investments.

Board of Directors

Information on Niche Group’s Board of Directors can be found here.

Table of Committees

Details of Niche Group’s Table of Committees can be found here.

Country of Incorporation

United Kingdom

Registration Number

04006413

Main Country of Operation

United Kingdom

Articles of Association

Details of the Articles of Association.

Shares

Niche Group’s shares are only traded on AIM, a market operated by London Stock Exchange plc and has not applied or agreed to have any of its securities admitted or traded to any other exchange or platform.

Financial Reports

Recent financial reports can be found here.

Notifications

All notifications made in the past 12 months can be found here.

Company Advisers

Details of the company’s key advisers can be found here.

Number of Securities in Issue

Details of the number of securities in issue, the number of treasury shares, the percentage of shares not in public hands, the identity and percentage holding of significant shareholders can all be viewed here.

There are no restrictions on the transfer of Niche Group’s AIM securities.

Admission Document

Niche Group’s Admission Document can be viewed here.