Brady Exploration plc

Brady Exploration plc, formerly Capcon Holdings plc, has been reclassified as an Investing Company (under Rule 15 of the AIM Rules) and the following Investment Strategy has been approved by shareholders.

Investment Strategy

The Directors intend to invest the net proceeds of the Placing in a company or companies operating in the natural resources sector, with a focus mainly but not exclusively on the mining sector, in accordance with the following Investing Policy:

The proposed investments to be made by the Company may be either quoted or unquoted; made by direct acquisition or through farm-ins; may be in companies, partnerships, joint ventures; or direct interests in mining projects. Target investments will generally be involved in projects in the exploration and/or development stage. The Company's equity interest in a proposed investment may range from a minority position to 100 per cent. ownership.

The Directors will initially focus on projects located in South America but will also consider investments in other geographical regions.

The Directors will identify and assess potential investment targets and, where they believe further investigation is required, intend to appoint appropriately qualified advisers to assist. They believe they have a broad range of sources of potential opportunities.

The Company proposes to carry out a comprehensive and thorough project review process in which all material aspects of any potential investment will be subject to rigorous due diligence. It is likely that the Company's financial resources will be invested in a small number of projects or potentially in just one investment, which may be deemed to be a reverse takeover under the AIM Rules.

Where this is the case, the Directors intend to mitigate risk by undertaking an appropriate due diligence process. Any transaction constituting a reverse takeover under the AIM Rules will require Shareholder approval and the publication by the Company of an admission document meeting the requirements of the AIM Rules. The Directors have not, however, excluded the possibility of building a broader portfolio of investment assets.

The Company intends to deliver Shareholder returns principally through capital growth rather than income distribution via dividends. Given the nature of the Company's Investing Policy, the Company does not intend to make regular periodic disclosures or calculations of net asset value. The Directors consider that, in due course, the Company may require additional funding as investments are made and new investment opportunities arise.

On Completion, the Company will have net cash of approximately £467,000 to implement its Investing Policy. The Company will consider raising additional funds, either in the form of equity or debt, to help implement the proposed Investing Policy, if and when required.