Cancellation of Share Premium Account

Blavod Extreme Spirits PLC ("The Company")

CANCELLATION OF SHARE PREMIUM ACCOUNT

30 March 2009

The Company announces that the High Court of Justice has consented to
the cancellation of the share premium account ("SPA"), which was
approved by shareholders at the last annual general meeting in July
2008.

Cancellation of the £18.489 million in the SPA has significantly
reduced the accumulated loss on the profit and loss account in both
the consolidated balance sheet and parent company balance sheet which
stood at £18.583 million and £19.964 million respectively at the last
year end, 31 March 2008.

The Company's business continues on previous trends and an
announcement of results for the year ending 31 March 2009 will be
made in the last days of May.

For further information, please contact:

Blavod Extreme Spirits plc

Richard Ambler (Managing Director) 0207 352 2096

Brewin Dolphin (Nominated Adviser)

Neil Baldwin/Alison Barrow 0845 270 8600

ENDS

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