NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR
    INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A
    VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.

    THIS ANNOUNCEMENT IS NOT AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER
    UNDER RULE 2.7 OF THE CITY CODE ON TAKEOVERS AND MERGERS (THE "CODE") AND THERE
    CAN BE NO CERTAINTY THAT ANY SUCH OFFER WILL ULTIMATELY BE MADE.

    THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.

    30 May 2017

                            The Prospect Japan Fund Limited                        

                                       ("TPJF")                                    

                            Statement re Rule 2.6 Extension                        

    On 10 January 2017, TPJF announced that it was in preliminary discussions with
    Prospect Co., Ltd. ("Prospect") in respect of a possible offer by Prospect for
    the entire issued and to be issued share capital of TPJF (the "Possible Offer
    ").

    In accordance with Rule 2.4(c) of the City Code on Takeovers and Mergers (the "
    Code") and further to the announcement made by TPJF on 2 May 2017 regarding an
    extension under Rule 2.6(c) of the Code, Prospect was required, pursuant to
    Rule 2.6(a) of the Code, by 5:00 p.m. on 30 May 2017 (the "relevant deadline"),
    to either (i) announce a firm intention to make an offer for TPJF in accordance
    with Rule 2.7 of the Code or (ii) announce that it does not intend to make an
    offer for TPJF.

    In accordance with Rule 2.6(c) of the Code, at the request of the independent
    directors of TPJF, the Panel on Takeovers & Mergers (the "Panel") has consented
    to an extension of the relevant deadline, until 5:00 p.m. on 31 May 2017, to
    enable the parties to conclude their ongoing discussions. By this time Prospect
    must either announce a firm intention to make an offer for TPJF or announce
    that it does not intend to make an offer for TPJF, in which case the
    announcement will be treated as a statement to which Rule 2.8 of the Code
    applies. This new deadline can be extended with the consent of the Panel in
    accordance with Rule 2.6(c) of the Code.

    In accordance with Rule 26.1 of the Code, a copy of this announcement will be
    available on TPJF's website (www.prospectjapanfund.com).

    Further announcements will be made as and when appropriate.

    Enquiries:

    The Prospect Japan Fund Limited                        Tel: 01481 745918          
    John Hawkins                                                                      
                                                                                      
    Stockdale Securities Limited                           Tel: 020 7601 6100         
    (Financial Adviser to TPJF)                                                       
    Daniel Harris                                                                     
    David Coaten                                                                      
                                                                                      
    Prospect Co., Ltd.                                     Tel: +1 808 383 3833       
    Curtis Freeze                                                                     
                                                                                      
    Strand Hanson Limited                                  Tel: 020 7409 3494         
    (Joint Financial Adviser to Prospect)                                             
    Stuart Faulkner                                                                   
                                                                                      
    Matthew Chandler                                                                  
    James Dance                                                                       
                                                                                      
    Mizuho Bank, Ltd. (Corporate Advisory department)      Tel: +81 (0) 3 3284 1655   
    (Joint Financial Adviser to Prospect)                                             
    Ryo Kamisaku                                                                      
    Eiichi Igarashi                                                                   
                                                                                      

    Stockdale Securities Limited, which is authorised and regulated in the United
    Kingdom by the Financial Conduct Authority, is acting exclusively as financial
    adviser to TPJF and no-one else in connection with the Possible Offer and will
    not be responsible to anyone other than TPJF for providing the protections
    afforded to clients of TPJF or for providing advice in relation to the Possible
    Offer or any other matter referred to herein.

    Strand Hanson Limited, which is authorised and regulated in the United Kingdom
    by the Financial Conduct Authority, is acting exclusively as joint financial
    adviser to Prospect and no-one else in connection with the Possible Offer and
    will not be responsible to anyone other than Prospect for providing the
    protections afforded to clients of Prospect or for providing advice in relation
    to the Possible Offer or any other matter referred to herein.

    Mizuho Bank, Ltd. (Corporate Advisory department), an investment banking arm of
    Mizuho Financial Group, which is regulated by the Japanese Financial Services
    Agency, is acting exclusively as joint financial adviser to Prospect and no-one
    else in connection with the Possible Offer and will not be responsible to
    anyone other than Prospect for providing the protections afforded to clients of
    Prospect or for providing advice in relation to the Possible Offer or any other
    matter referred to herein.

    Disclosure requirements of the Code:

    Under Rule 8.3(a) of the Code, any person who is interested in 1% or more of
    any class of relevant securities of the offeree company or of any securities
    exchange offeror (being any offeror other than an offeror in respect of which
    it has been announced that its offer is, or is likely to be, solely in cash)
    must make an Opening Position Disclosure following the commencement of the
    offer period and, if later, following the announcement in which any securities
    exchange offeror is first identified. An Opening Position Disclosure must
    contain details of the person's interests and short positions in, and rights to
    subscribe for, any relevant securities of each of (i) the offeree company and
    (ii) any securities exchange offeror(s). An Opening Position Disclosure by a
    person to whom Rule 8.3(a) applies must be made by no later than 3.30 p.m.
    (London time) on the 10th business day following the commencement of the offer
    period and, if appropriate, by no later than 3.30 p.m. (London time) on the
    10th business day following the announcement in which any securities exchange
    offeror is first identified. Relevant persons who deal in the relevant
    securities of the offeree company or of a securities exchange offeror prior to
    the deadline for making an Opening Position Disclosure must instead make a
    Dealing Disclosure.

    Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1%
    or more of any class of relevant securities of the offeree company or of any
    securities exchange offeror must make a Dealing Disclosure if the person deals
    in any relevant securities of the offeree company or of any securities exchange
    offeror. A Dealing Disclosure must contain details of the dealing concerned and
    of the person's interests and short positions in, and rights to subscribe for,
    any relevant securities of each of (i) the offeree company and (ii) any
    securities exchange offeror(s), save to the extent that these details have
    previously been disclosed under Rule 8. A Dealing Disclosure by a person to
    whom Rule 8.3(b) applies must be made by no later than 3.30 p.m. (London time)
    on the business day following the date of the relevant dealing.

    If two or more persons act together pursuant to an agreement or understanding,
    whether formal or informal, to acquire or control an interest in relevant
    securities of the offeree company or a securities exchange offeror, they will
    be deemed to be a single person for the purpose of Rule 8.3.

    Opening Position Disclosures must also be made by the offeree company and by
    any offeror and Dealing Disclosures must also be made by the offeree company,
    by any offeror and by any persons acting in concert with any of them (see Rules
    8.1, 8.2 and 8.4).

    Details of the offeree and offeror companies in respect of whose relevant
    securities Opening Position Disclosures and Dealing Disclosures must be made
    can be found in the Disclosure Table on the Takeover Panel's website at
    www.thetakeoverpanel.org.uk, including details of the number of relevant
    securities in issue, when the offer period commenced and when any offeror was
    first identified. You should contact the Panel's Market Surveillance Unit on
    +44 (0)20 7638 0129 if you are in any doubt as to whether you are required to
    make an Opening Position Disclosure or a Dealing Disclosure.

    Notice to overseas investors

    This announcement does not constitute an offer to purchase any securities, or
    an offer to sell or the solicitation of an offer to buy any securities, nor
    shall there be any offer to purchase or sell securities in any jurisdiction in
    which such offer, solicitation or sale would be unlawful. The release,
    distribution or publication of this announcement in jurisdictions other than
    the UK may be restricted by law and therefore any persons who are subject to
    the laws of any jurisdiction other than the UK should inform themselves about
    and observe any applicable requirements.

    Website disclosure

    A copy of this announcement will be made available (subject to certain
    restrictions relating to persons resident in restricted jurisdictions) on
    TPJF's website at www.prospectjapanfund.com by no later than 12 noon (London
    time) on 31 May 2017. The content of the website referred to in this
    announcement is not incorporated into and does not form part of this
    announcement.