Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST PLC

All information is at 30 November 2010 and unaudited.

Performance at month end is calculated on a capital only basis
                            One      Three      One     Three     Five
                          Month     Months     Year     Years    Years
Net asset value            2.1%      25.2%    50.3%     28.4%    72.7%
Share price                5.7%      29.8%    59.5%     37.7%    74.2%
HGSC ex Inv Trust + AIM*  -0.3%      11.9%    20.6%     -7.5%     2.1%

Sources: BlackRock and Datastream

*With effect from 1 September 2007 the Hoare Govett Smaller Companies plus AIM
(ex Investment Companies) Index replaced the FTSE SmallCap Index (ex Investment
Companies) as the Company's benchmark. For the five year period the above index
has been blended to reflect this.

At month end
Net asset value Capital only (debt at par value):     536.43p
Net asset value Capital only (debt at fair value):    532.19p
Net asset value incl. Income (debt at par value):     541.45p**
Net asset value incl. Income (debt at fair value):    537.21p**
Share price:                                          453.00p
Discount to Capital only NAV (debt at par value):       15.5%
Discount to Capital only NAV (debt at fair value):      14.9%
Net yield:                                               1.3%
Total assets:                                         £282.3m^
Gearing incl. Income:                                    8.9%
Ordinary shares in issue:                          47,879,792^^

**includes net revenue of 5.02p
^includes current year revenue
^^excludes 2,113,731 shares held in treasury

Ten Largest Sector
Weightings                                % of total assets
Industrial Metals & Mining                10.5
Oil & Gas Producers                       10.1
Software & Computer Services               9.2
Electronic & Electrical Equipment          8.8
Financial Services                         8.2
Support Services                           7.5
Industrial Engineering                     6.3
Media                                      5.6
Pharmaceuticals & Biotechnology            4.9
Technology Hardware & Equipment            4.2
                                          ----
Total                                     75.3
                                          ====

Ten Largest Equity Investments(in alphabetical order)
Company
Abcam Group
Aveva Group
City Of London Investment Group
Cove Energy
Domino Printing Sciences
Fidessa group
Hutchison China Meditech
IQE
ITE Group
Spirax-Sarco Engineering

Commenting on the markets, Mike Prentis, representing the Investment Manager
noted:

November was a relatively flat month for the Company, but good to the benchmark
index relative. The Company's NAV per share rose by 2.1% on a capital only
basis, whilst the benchmark index fell by 0.3%. The FTSE 100 Index fell by
2.5%.

The main positive contributors to our outperformance in the month, relative to
the Company's benchmark, were all in the resources space: Western Coal, Bahamas
Petroleum and Cove Energy. Western Coal announced that it was in discussions
with Walter Energy, a US listed coal producer, to be acquired. Its shares rose
by more than 40% after the announcement. Bahamas Petroleum shares also rose
strongly, as coverage of this small oil exploration company increased. It has
extensive acreage in the Bahamas, just north of oilfields in Cuban waters. Run
by Alan Burns, the founder of Hardman Resources which was sold to Tullow Oil,
we see this as potentially a very exciting company. Cove Energy announced its
third major gas discovery offshore Mozambique the Lagosta well which
encountered 550 net feet of gas pay. The operator is Anardarko, who indicated
that they believe the discoveries exceed the resource size threshold necessary
to support a liquefied natural gas development.

The largest negative contributor to relative outperformance was our holding in
Fidessa, but this was only -0.25% and there was no significant news on the
company during the month.

Outperformance during November was derived from both stock selection and sector
allocation. Our overweight position in mining stocks contributed well to
outperformance due to sector allocation.

Activity during the month was limited. Following the approach for Western Coal,
we sold about 40% of our holding in order to avoid it becoming too large a
position.

Latest information is available by typing www.blackrock.co.uk/its on the
internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV
terminal).

16 December 2010