ScotGems PLC

LEI Number:                 549300GQHCPU9P1NYM13

1 July 2022

Company update

On 9 March 2022, the Board of ScotGems PLC (the "Company") announced that it had received notice to terminate the Alternative Investment Fund Management Agreement dated 2 June 2017 from First Sentier Investors (UK) Funds Limited, the Company's AIFM.

On 12 May 2022, the Board announced that it had considered carefully the future of the Company including reviewing a number of proposals made to the Board and consulting with the Company’s largest shareholders. The Board indicated that throughout this process the Board had taken into account the size of the Company, the discount at which the Company's shares trade relative to net asset value and the limited liquidity in the Company's shares. The Board further indicated that it wanted to ensure that all shareholders had an opportunity to consider the future of the Company, that the Board intended to continue consulting with shareholders and that it was considering all options for the future of the Company, including a straightforward winding up.

Following consultation with the Company’s major shareholders and its advisers, the Board has determined that it would be in the best interests of the Company and shareholders as a whole to put forward formal proposals to shareholders for a members' voluntary liquidation of the Company. Such proposals, if approved, would provide all shareholders with a full cash exit less costs.

In advance of the liquidation, the Board intends to instruct its investment manager to realise the Company's investment portfolio in an orderly manner. The exact timing of such liquidation will depend on market conditions. Subject to progress with the liquidation of the Company's portfolio, the Board will then convene a general meeting at which a special resolution to approve the members' voluntary liquidation of the Company will be proposed. A further announcement will be released on publication of the required circular convening such meeting, which is expected to be held in the near future.

Enquiries:

Juniper Partners Limited (Secretary)              0131 378 0500

Douglas Armstrong

Dickson Minto (Sponsor)                                 020 7649 6823

Important Information

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014, as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented ("UK MAR") and is disclosed in accordance with the Company's obligations under UK MAR. Upon the publication of this announcement, this inside information will be considered to be in the public domain.