Milestone Group PLC : Issue of Equity and Warrants

Milestone, the AIM quoted (AIM: MSG) provider of digital media and technology solutions, announces that it has issued a total of 25,638,735 new ordinary shares in the Company, comprising:

      -       17,781,323 new ordinary shares at a price of 1 penny per share to new and existing shareholders, raising £177,813.23 in cash;
      -       1,457,412 new ordinary shares at a price of 1 penny per share in settlement of £14,574.12 of trade creditors; and
      -       6,400,000 new ordinary shares in the Company at a price of 0.75 pence per share as part of the acquisition of Oil Productions Ltd.

The Company also announces that it has issued 6,932,823 warrants to certain investors in the placing entitling the holders to subscribe for new ordinary shares at an exercise price of 1 penny per share which may be exercised up until 12 November 2014.

Pursuant to the announcement of 15 August 2011, Milestone acquired the entire issue share capital of Oil Productions Limited ("Oil") for a consideration of up to £600,000 to be satisfied in three tranches. The first tranche was satisfied by the issue of shares in August 2011 and the second tranche was partially satisfied by the issue of shares in February 2013. The 6,400,000 new ordinary shares being issued at this time complete the issue of the second tranche consideration, bringing the total consideration for the second tranche to £73,150.

The 25,638,735 new ordinary shares will rank pari passu with the existing ordinary shares of Milestone. Application has been made for the new ordinary shares to be admitted to trading on AIM, which is expected to occur on or around 18 November 2013.

Following the issue equity, Milestone will have in issue 442,816,988 ordinary shares with voting rights.

No application will be made for the warrants to be admitted to trading on AIM.

For further information:

Milestone Group PLC Deborah White, Chief Executive	Tel: [phone]
Cairn Financial Advisers LLP, Nominated Adviser Liam Murray / Avi Robinson	Tel: [phone]
Hybridan LLP, Broker Claire Louise Noyce	Tel: [phone]

---

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: Milestone Group PLC via Thomson Reuters ONE

HUG#1742574