Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST plc

All information is at 28 February 2011 and unaudited.

Performance at month end is calculated on a capital only basis

                             One     Three        One      Three       Five      
                           Month    Months       Year      Years      Years     
Net asset value             1.0%     14.4%      63.6%      50.5%      70.9%     
Share price                 2.0%     19.6%      84.5%      59.4%      73.7%     
HGSC ex Inv Trust + AIM*    0.8%     11.1%      28.8%       8.7%       2.1%      

Sources: BlackRock and DataStream

*With effect from 1 September 2007 the Hoare Govett Smaller Companies plus AIM
(ex Investment Companies) Index replaced the FTSE SmallCap Index (ex Investment
Companies) as the Company's benchmark. For the five year period the above index
has been blended to reflect this.

At month end                                                                  
                                                                              
Net asset value Capital only (debt at par value):           613.93p           
Net asset value Capital only (debt at fair value):          609.70p           
Net asset value incl. Income (debt at par value):           620.29p**         
Net asset value incl. Income (debt at fair value):          616.06p**         
Share price:                                                542.00p           
Discount to Capital only NAV (debt at par value):           11.7%             
Discount to Capital only NAV (debt at fair value):          11.1%             
Net yield:                                                  1.1%              
Total assets:                                               £325.7m^          
Gearing incl. Income:                                       9.4%              
Ordinary shares in issue:                                   47,879,792^^      

**includes net revenue of 6.36p.
^includes current year revenue.
^^excludes 2,113,731 shares held in treasury.

Ten Largest Sector                                                         
Weightings                                % of Total Assets
                                                                           
Industrial Metals & Mining                      10.2                       
Software & Computer Services                    10.2                       
Support Services                                 9.1                        
Financial Services                               7.9                        
Oil & Gas Producers                              7.9                        
Electronic & Electrical Equipment                7.8                        
Media                                            5.9                        
Industrial Engineering                           5.6                        
Pharmaceuticals & Biotechnology                  5.0                        
Chemicals                                        3.9                        
                                                ----                      
Total                                           73.5                       
                                                ====                       

Ten Largest Equity Investments (in alphabetical order)

Company

Abcam Group
Aveva Group
City of London Investment Group
Domino Printing Sciences
Fidessa group
Hargreaves Services
Hutchison China Meditech
IQE
ITE Group
Renishaw

Commenting on the markets, Mike Prentis, representing the Investment Manager
noted:

During February the Company's NAV per share rose by 1.0% on a capital only
basis, whilst the benchmark index increased by 0.8%. The FTSE 100 Index rose by
2.2%.

We are concerned by the instability in North Africa and the Middle East, and
the hike in oil prices. Our hope is that the oil price will not increase
further and that the recent increase will not prove long lived, in which case
the threat to the global economy should not be too significant. Data from the
US seems to be gradually improving, and although growth in parts of Asia is
slowing we don't expect a significant slowdown. Our stance is therefore
watchful but still cautiously positive.

Other than the political instability in North Africa and the Middle East,
February was an uneventful month for the Company. The only significant positive
contributor to our outperformance in the month, relative to the Company's
benchmark, was our holding in African Aura Mining, which contributed 0.29% to
relative outperformance. This is a relatively small holding but performing very
well due to consistently good newsflow. The company has several assets which it
is progressing towards feasibility. These are the Putu Iron ore project in
Liberia, which it is a joint venture with Severstal, and the Nkout iron ore
project in Cameroon. Each of these projects appears to have resources in excess
of 1 billion tonnes of high grade ore, with significant potential for
increases. The Company also owns the New Liberty Gold project in Liberia, a
1.5million high grade gold resource. The gold assets are soon to be demerged
into a separate listed vehicle which will be run by Brian Reading who was CEO
of European Goldfields as it firmed up its substantial gold resources. Relative
to other assets in West Africa, these projects look undervalued.

There was no significant detractor from relative performance during the month,
in that no one holding contributed more than -0.25% to relative performance.

Sector allocation was negative during the month. This was mainly due to the
underperformance of software companies where we are significantly overweight.
Within the software sector we had good share price performances from Kofax and
Fidessa during February, both on the back of good results. Share price
performances from holdings in Alterian and Blinkx were relatively poor during
the month, but there was no significant newsflow from either company.

Activity during the month was fairly limited.


18 March 2011

ENDS

Latest information is available by typing www.blackrock.co.uk/its on the
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terminal). Neither the contents of the Manager's website nor the contents of
any website accessible from hyperlinks on the Manager's website (or any other
website) is incorporated into, or forms part of, this announcement.