Interim Management Statement

British & American Investment Trust PLC

Interim Management Statement - 3 months to 30 September 2012

To the members of British & American Investment Trust PLC

This interim management statement has been produced solely to provide
additional information to shareholders as a body to meet the relevant
requirements of the UK Listing Authority's Disclosure and Transparency Rules.
It should not be relied upon by any other party or for any other purpose.

This interim management statement relates to the period from 1 July 2012 to 30
September 2012, and contains information that covers this period, and up to the
date of publication of this interim management statement, unless otherwise
specified.

Investment objective

To invest predominantly in investment trusts and other leading UK-quoted
companies to achieve a balance of income and growth.

Benchmark

FTSE All-Share Index and FTSE 100 Index.

Material developments

On 24 August 2012 the company reported its Half Year results to 30 June 2012.
An interim ordinary dividend of 2.7p is to be paid on 8 November 2012 to
shareholders on the register at 12 October 2012. A dividend of 1.75p per share
is to be paid to preference shareholders on 8 November 2012.

On 25 October 2012 a letter to shareholders was published regarding the
company's investment in Geron Corporation and the open letter sent by Biotime
Inc to Geron Corporation shareholders seeking to acquire Geron's stem cell
assets.

Twenty largest equity holdings at 30 September 2012 (group basis)

                                                                  %            
                                                                               
Geron Corporation                                                 16.98        
                                                                               
Rit Capital Partners plc                                          14.01        
                                                                               
Prudential                                                        12.16        
                                                                               
Dunedin Income Growth                                             10.51        
                                                                               
British Assets Trust                                              8.34         
                                                                               
St James's Place International                                    6.92         
                                                                               
Scottish & American Investment Company                            4.08         
                                                                               
Invesco Income Growth Trust                                       3.18         
                                                                               
Alliance Trust                                                    3.00         
                                                                               
Royal & Sun Alliance Insurance Group 7.375% Cu. Irred.preference  2.25         
shares £1                                                                      
                                                                               
Rothschilds Continuation Finance - 9% Perp. Sub. Gtd. Loan Notes  2.06         
                                                                               
F&C Asset Management - 6.75% FRN Sub. Bonds 2026                  1.99         
                                                                               
Shires Income                                                     1.94         
                                                                               
Merchants Trust                                                   1.71         
                                                                               
Earthport                                                         1.14         
                                                                               
Barclays Bank - 9% PIB Capital Bonds                              0.99         
                                                                               
St James's Place                                                  0.85         
                                                                               
Jupiter Income Trust                                              0.83         
                                                                               
ADVFN                                                             0.75         
                                                                               
Emblaze Systems                                                   0.73         
                                                                               
Total                                                             94.42        

Sector allocation as at 30 September 2012 (group basis)

                                         %                         
                                                                   
Investment Trusts                        45.55                     
                                                                   
Biomedical - USA                         15.86                     
                                                                   
Life Assurance                           12.15                     
                                                                   
Unit Trusts                              7.24                      
                                                                   
Software and computer services           1.75                      
                                                                   
Other Financial                          0.70                      
                                                                   
Leisure and hotels                       0.44                      
                                                                   
Telecommunications                       0.42                      
                                                                   
Property                                 0.24                      
                                                                   
Bank retail                              0.16                      
                                                                   
Biotechnology                            0.12                      
                                                                   
Media                                    0.08                      
                                                                   
Pharmaceuticals                          0.07                      
                                                                   
Financial services                       0.07                      
                                                                   
Support services                         0.03                      
                                                                   
Overseas                                 0.01                      
                                                                   
Derivatives - traded options             6.31                      
                                                                   
Fixed Interest Stocks excluding          3.79                      
Preference                                                         
                                                                   
Preference                               2.58                      
                                                                   
Property Units                           1.26                      
                                                                   
Permanent Interest Bearing               1.08                      
                                                                   
Fixed Interest Stocks (unquoted)         0.09                      
                                                                   
Total                                    100.00                    

Key facts

Performance

                        As at       As at       As at       As at       As at
                           30          30          30          30          30
                    September   September   September   September   September
                         2012        2012        2011        2009        2007
                              Year end to      1 year     3 years     5 years
                                     date                                    
                                                                             
Total assets           24,545                                                
(000)                                                                        
                                                                             
Short term               £nil                                                
borrowings                                                                   
                                                                             
Actual gearing          nil %                                                
                                                                             
                         70.1                                                
NAV (p)                                                                      
                                                                             
                     2,998.86                                                
FTSE All-Share                                                               
                                                                             
                         72.0        7.5%        4.3%      -20.0%      -35.1%
Share price (p)                                                              
                                                                             
                         2.7%                   -5.3%       -6.3%      -11.8%
Premium/                                                                     
(discount)                                                                   
                                                                             
                       10.28%                  10.43%       7.33%       5.59%
Dividend yield                                                               
                                                                             
                        1.95%                                                
Total expense                                                                
ratio                                                                        
(year ended 31/12                                                            
/11)                                                                         
                                                                             
                                               1 year     3 years     5 years
                                                                             
Value of £100                                   116.0       105.4        99.9
invested                                                                     
(dividends                                                                   
reinvested)                                                                  
                                                                             
FTSE ALL-Share                                  113.0       113.8        91.4

Total Return; Net Income Reinvested, GBP

Source: Walker Crips Stockbrokers Limited and Fundamental Data Limited.

The Board is not aware of any significant events or transactions which have
occurred between 30 September 2012 and the date of publication of this interim
management statement which would have a material impact on the financial
position of the Company. For latest performance information, please refer to
the Company's website, www.baitgroup.co.uk.

For British & American Investment Trust PLC

5 November 2012