Caspian Holdings plc

24 April 2007

Credit Facility Agreement

 
Caspian Holdings Plc (“Caspian” or the “Company”) announces that it has concluded an unsecured credit facility agreement to raise up to £1,000,000 at a rate of 4% over LIBOR from investors and major shareholders.

 

The credit facility will be drawn down in two tranches:

 

(i)       the first tranche of £700,000 will be drawn down on 24 April 2007; and

 

(ii)       the second tranche, available at the sole discretion of Caspian and for any sum up to the outstanding balance of the credit facility limit after the first drawdown, will be drawn down within 6 months of the date of the first drawdown. This second tranche is at this date uncommitted.

 

Participating investors have been granted 25 options over ordinary shares in the Company for every £1.00 invested in the facility as a commitment fee. The options have an exercise price of 4 pence and expire on 31 December 2010.

 

The loan is a short term facility to fund working capital and new project acquisition activities.  It is intended that the facility is replaced with more permanent finance in the future following either the extension of the Zengeldy licence area and/or new project acquisition.  The loan will be repaid in full on the earlier of an equity raising or at maturity on 11 April 2009.  Major shareholders including Chairman Michael Masterman have shown their support for the Company in participating in the loan facility.