Hill : Issue of Equity

17 March 2014

LP Hill Plc

("LP Hill" or the "Company")

LP Hill (AIM: LPH), the AIM listed uranium, thorium, base and precious metals and gemstones exploration and development company operating in Madagascar, announces that the Hereford Group Limited ("Hereford") has elected to convert its unsecured loan notes due 14 March 2014 (the "Notes") in full, into 4,615,385 new ordinary shares of 0.1 pence each in the capital of the Company (the "Ordinary Shares"), at a revised conversion price of 6.5 pence per Ordinary Share. Hereford has also been issued a further 354,879 new Ordinary Shares at the same price, in satisfaction in full of the accrued interest due on the Notes. The Company's closing middle market share price on 14 March 2014, being the last business day prior to the date of this announcement, was 7.25 pence.

The original terms of the Notes provided for a conversion price of 10 pence per Ordinary Share which the Company has agreed to vary to 6.5 pence per Ordinary Share (the "Variation"). The board believes that such Variation is in the best interests of shareholders and the Company in light of the Company's limited cash resources and the prevailing market share price.

Hereford is an existing substantial shareholder in the Company and therefore a related party for the purposes of the Variation, which is deemed to be a related party transaction in accordance with the AIM Rules for Companies. Accordingly, the directors of the Company consider, having consulted with Strand Hanson Limited, the Company's nominated adviser, that the Variation is fair and reasonable insofar as the Company's shareholders are concerned.

Application will be made to the London Stock Exchange for the, in aggregate, 4,970,264 new Ordinary Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and that dealings will commence at 8.00 a.m. on 21 March 2014.

Following the issue of the abovementioned new Ordinary Shares, the Company's issued share capital will consist of 35,108,070 Ordinary Shares with voting rights.The Company does not hold any Ordinary Shares in treasury and accordingly there are no voting rights in respect of any treasury shares.

The above figure of 35,108,070 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, LP Hill under the Financial Conduct Authority's Disclosure and Transparency Rules.

Following the abovementioned allotment of new Ordinary Shares, Hereford is now interested in 9,115,290 Ordinary Shares, representing approximately 25.96 per cent. of the Company's enlarged issued share capital.

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