Circ re Proposed Disposal of Investment Property

29 November 2011

                   London Finance & Investment Group P.L.C.                    

                           ("LFIG" or the "Company")                           

                Posting of Class 1 Circular in connection with                 

                   Proposed Disposal of Investment Property                    

Further to the announcement made on 4 November 2011, the Company is pleased to
announce that it has posted a Class 1 Circular to Shareholders (the "Circular")
on Monday 28th November 2011 seeking Shareholder approval for the disposal of
the Company's property in Rutland Gate, Knightsbridge, London (the `Property')
for a cash consideration of £2.625 million (the "Disposal"). A notice of
General Meeting is set out at the end of the Circular convening a General
Meeting of the Company to be held at 30 City Road, London EC1Y 2AG at 3.30 p.m.
on 21 December 2011.

The Circular is available from the offices of the Company and from its website,
www.city-group.com.

The Circular includes the following additional disclosure in relation to the
financial effects of the Disposal and also clearly sets out the Investment
Policy.

Subject to Shareholder approval, the expected cash proceeds of the Disposal,
net of transaction costs and tax will be £2,397,000, representing 34.9 per
cent. of the Company's market capitalisation as at 25 November 2011, the last
practicable date prior to the publication of this Document. The cash proceeds
of the Disposal will be held on the Company's balance sheet as cash and cash
equivalents pending reinvestment in line with the Company's investment policy,
as set out below. The effect on earnings will be that the Company will no
longer receive annual rental income from the Property of £53,000 per annum;
this will be offset to the extent that a return can be made on new investments
and the Net Cash Proceeds pending investment.

Investment Policy

The Company's investment policy is to invest in a range of "strategic"
investments, a "general portfolio" consisting primarily of highly liquid stock
market investments, both in equity instruments and bonds, and, at the Board's
discretion, `other investments', typically property and other physical assets.
This investment policy is designed to achieve the Company's objectives of
capital growth in real terms over the medium term, while maintaining a
progressive dividend policy.

Both "strategic" and "general portfolio" investments can be in any industry
sector. "Strategic" investments are significant minority positions in UK small
cap companies which can be either quoted or unquoted; to diversify risk, the
policy is to maintain a number of such investments. Most such investments will
be in shares of companies that are publicly traded but investments can also be
made in publicly traded and untraded debt or equity instruments of companies
that are strategic investments. The "general portfolio" aims to further
diversify risk through a spread of investments and a target of between 20 and
30 holdings in some of the largest European quoted companies.

The intention is for between 30 per cent. and 70 per cent. of the overall
investment portfolio with a maximum limit of 80 per cent. to be in "strategic"
investments at the point of investment, with the balance of the portfolio, net
of "other investments", to be in the "general portfolio". "Other investments"
will be limited to 20 per cent. of the overall value of the investment
portfolio, measured at the point of investment. No one "strategic investment"
or "other investment" will represent more than 30 per cent. and 20 per cent.
respectively of the value of all investments at the time of making such
investment and no one "general portfolio" investment will represent more than
10 per cent. of the value of the "general portfolio" at the time of such
investment.

Within these parameters, changes in strategic and other investments are decided
on by the Board and changes to the general portfolio are decided on by the
Board or, between Board meetings, by an Investment Committee of the Board. The
investment guidelines within which the Investment Committee operates allow the
Investment Committee discretion within the parameters set by the Investment
Policy. The investment mix and level of borrowings are reviewed at each board
meeting.

The Company's gearing is limited at or below 70 per cent. of the total value of
investments.

Enquiries:

London Finance & Investment Group P.L.C.

Lloyd Marshall

Tel: [phone]

Beaumont Cornish Limited, Sponsor

Roland Cornish

Tel: [phone]