| TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES | 
| 1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached: | British American Tobacco p.l.c. | 
| 2 Reason for the notification (please tick the appropriate box or boxes): | ||
| An acquisition or disposal of voting rights | x | |
| An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached |  | |
| An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments |  | |
| An event changing the breakdown of voting rights |  | |
| Other (please specify): | 
 |  | 
| 3. Full name of person(s) subject to the notification obligation: | The Capital Group Companies, Inc. | 
| 4. Full name of shareholder(s) (if different from 3.): | See Section 9 | 
| 5. Date of the transaction and date on which the threshold is crossed or reached: | 2 March 2016 | 
| 6. Date on which issuer notified: | 3 March 2016 | 
| 7. Threshold(s) that is/are crossed or reached: | Above 5% - aggregate of voting rights from shares | 
| 8. Notified details: | |||||||
| A: Voting rights attached to shares | |||||||
| Class/type of 
 | Situation previous | Resulting situation after the triggering transaction | |||||
| Number | Number | Number | Number of voting | % of voting rights | |||
| Direct | Direct | Indirect | Direct | Indirect | |||
| Ordinary Shares (ISIN: GB0002875804) | 92,422,985 | 92,422,985 |  |  | 94,036,893 |  | 5.0443% | 
| ADRs (ISIN: US1104481072) | 127,524 | 255,048 |  |  | 284,218 |  | 0.0152% | 
| B: Qualifying Financial Instruments | ||||
| Resulting situation after the triggering transaction | ||||
| Type of financial | Expiration | Exercise/ | Number of voting 
 | % of voting | 
| N/A |  |  |  |  | 
| C: Financial Instruments with similar economic effect to Qualifying Financial Instruments | ||||||
| Resulting situation after the triggering transaction | ||||||
| Type of financial | Exercise | Expiration | Exercise/ | Number of voting | % of voting rights 
 | |
| N/A |  |  |  |  | Nominal | Delta 
 | 
|  |  | |||||
| Total (A+B+C) | |
| Number of voting rights | Percentage of voting rights | 
| 94,321,111 | 5.0595% | 
| 9. Chain of controlled undertakings through which the voting rights and/or the | ||||||||||||||||||||||||||||||||||||||||
| 
 
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| Proxy Voting: | |
| 10. Name of the proxy holder: | N/A | 
| 11. Number of voting rights proxy holder will cease to hold: | N/A | 
| 12. Date on which proxy holder will cease to hold voting rights: | N/A | 
| 13. Additional information: | N/A | 
| 14. Contact name: | Bridget Creegan Assistant Secretary | 
| 15. Contact telephone number: | 020 7845 1927 |