rab/abu dabbab., page-7

re: rab/future financing of projects? A more detailed UK version of the rab annmnt.

RAB Capital plc
03 May 2005



3rd May 2005

RAB Capital plc

RAB Special Situations - Reorganisation


On 29 April RAB Special Situations Company plc ("RAB SSC"), a newly formed
investment company established to provide exposure to the investment approach
pursued by the existing RAB Special Situations strategy, announced its intention
to seek admission to trading on AIM, the Alternative Investment Market of the
London Stock Exchange. RAB SSC will be managed by RAB Capital plc.

As part of the launch of RAB SSC, the legal structure of the existing RAB
Special Situations strategy, a Delaware-based limited partnership, is being
reorganised. A New Master Fund has been incorporated into which all investments
of the existing RAB Special Situations strategy will be transferred. Most of
these transfers will occur by way of a market trade today. The New Master Fund
will continue to pursue exactly the same approach as the existing RAB Special
Situations strategy, but with additional capital from the prospective launch of
the RAB SSC.


Enquiries:

Ben Woodford/Sara Landgrebe
Bell Pottinger
020 7861 3923


Notes for editors - RAB Special Situations Company

*RAB SSC intends to raise approximately £100 million, before expenses,
through a placing of shares and warrants. The Placing price will be 100p per
share. Dealing is expected to commence on 20 May 2005. Collins Stewart is
acting as Nominated adviser and broker to RAB SSC.

*RAB SSC will be a closed-end investment company, traded on AIM, which
will provide an exposure to the highly successful RAB Special Situations
strategy. The investment objective is to achieve maximum total returns
primarily through the capital appreciation of its investments.

*RAB SSC will be managed by Philip Richards, Chief Executive of RAB
Capital plc and the fund manager of the RAB Special Situations strategy.
This strategy has grown by 49% during 2004 and over 2500% since 1 January
2003 built on a proven ability to identify growth opportunities.

*A New Master Fund has been incorporated into which the investments of the
existing RAB Special Situations Fund will be transferred. This New Master
Fund will continue to pursue the same strategy and approach as the existing
RAB Special Situations fund and RAB SSC will initially invest up to 100% of
its assets in the New Master Fund to provide exposure to the unrecognised
potential value of the warrants and private equity investments it holds.

*RAB SSC will provide to investors, via the AIM listing, better liquidity
through a secondary market.

*RAB SSC will also provide additional liquidity to the RAB Special
Situations strategy, allowing participation in more opportunities and the
acquisition of significant stakes in projects.

*RAB Special Situations pursues an opportunistic strategy, which allows
investment in a wide range of securities and other instruments, with no
specific asset or geographic exposure. Since January 2003 the focus has been
on the natural resources sector. Philip Richards believes potential returns
from natural resources-related investments will continue to be influenced by
strong levels of demand for natural resources combined with the effect of a
decline in exploration activities over the last decade.

*As the investment objective is to achieve returns primarily through the
capital appreciation of its investments, an investment in the Company will
only be suitable for investors willing to assume the risks involved.

*The minimum investment per subscriber will be £25,000, which is
equivalent to the $50,000 minimum investment level of the existing RAB
Special Situations Fund. Following admission to trading on AIM, the Company
will monitor changes in the share register and contact new shareholders to
emphasise the risks involved in holding shares in the Company.


Notes for Editors - RAB Capital plc

RAB Capital is a London based multi-strategy investment management company
focusing on absolute returns. The Company was founded in 1999, and floated on
AIM in March 2004. As at 31st December 2004 had $1.75 billion of assets under
management. RAB Capital currently manages eight hedge fund strategies and two
fund of funds: Europe, Special Situations, High Yield, UK, North American,
Japan, Energy; Emerging Europe and Fairseat (internal) and Strancally (external)
funds of funds. RAB Capital also provides advisory and distribution services
within the hedge fund industry.

RAB Capital's philosophy is to find highly talented investment managers and
provide them with an environment where they can successfully dedicate themselves
to running focused investment strategies. Core strategies focus on capital
preservation and consistent absolute returns. RAB Capital has 67 employees, 29
of whom are investment professionals.