Manx Financial Group PLC Independent Directors have carefully considered the most suitable method of further augmenting the regulatory capital available to its subsidiary company Conister Bank Limited ("Conister"). As a result, and having considered other methods of raising capital, the Independent Directors have resolved, following negotiation, to accept on arms-length and standard commercial terms, two loans of £1.0 million each. Each loan is for five years, with a coupon of 6.0% per annum, is repayable at any time and has no conversion rights. One loan is from Burnbrae Limited ("Burnbrae") and the other is from Culminant Reinsurance Ltd. ("Culminant").