Issue of Equity - Replacement

Blavod Extreme Spirits PLC
17 December 2007

The previous release, RNS number 0385K issued at 1007 today, stated that
Lawrence Banks, non-executive director of the Company, has subscribed £50,050
for 18,200,000 Placing Shares. This statement was incorrect as the subscription
of £50,050 represents 1,820,000 Placing Shares. The announcement should have
read:

Blavod Extreme Spirits PLC ('Blavod' or the 'Company')

Issue of Equity

17 December 2007

Placing of 13,057,900 new Ordinary Shares at 2.75p per share to raise
approximately £0.36m.

Blavod, the AIM listed owner of the Blavod Black Vodka brand, and wine and
spirits distributor, today announces it has raised approximately £0.36m by way
of a placing of new shares.

Summary of the Placing:

• Placing of 13,057,900 Placing Shares at a price of 2.75p per share to raise
approximately £0.36m.

• Proceeds of the Placing will be used to strengthen the Company's balance sheet
and fund the working capital requirements anticipated as a result of the sales
growth of Blavod Black Vodka and the rest of the portfolio of wine and spirit
brands.

The Placing is being made on a non pre-emptive basis as the time and costs
associated with a pre-emptive offer resulting from the introduction of the EU
Prospectus Rules (which came into force in July 2005) are considered by the
Directors to be excessive. The making of a pre-emptive offer would require the
production of a prospectus which would have to comply with the Prospectus Rules
and be pre-vetted and approved by the FSA. The Company obtained shareholder
consent to the issue of shares constituting up to 20 per cent of the Company's
existing issued share capital on a non pre-emptive basis at the recent General
Meeting.

Details of the Placing

The Company is raising approximately £360,000 through the issue of the Placing
Shares at the Placing Price. The Placing Price of 2.75p represents a premium of
5 per cent. to the closing middle market price of 2.625p on 14 December 2007,
being the last practicable dealing day prior to the date of this announcement.
The Placing Shares will represent approximately 15.13 per cent. of the Company's
issued share capital immediately following Admission.

Related party transaction

The Placing Shares have been placed at the Placing Price with various
institutional investors, and to Directors and key employees in the Company. In
particular Richard Ambler, Managing Director, has subscribed £16,500 for 600,000
Placing Shares, Colin Campbell, non executive Chairman has subscribed £30,000
for 1,090,900 Placing Shares, and Lawrence Banks, non executive director, has
subscribed £50,050 for 1,820,000 Placing Shares.

The issue of Placing Shares to Richard Ambler, Colin Campbell and Lawrence Banks
is classified as a transaction with a related party for the purposes of the AIM
Rules. In accordance, therefore, with the AIM Rules, Willie Phillips (the
independent director), having consulted with the Company's nominated adviser,
Brewin Dolphin, considers that the terms of the transaction (namely the
subscriptions by Messrs Ambler, Campbell and Banks, pursuant to the Placing at
the Placing Price) are fair and reasonable insofar as its Shareholders are
concerned.

Admission and dealings in the Placing Shares are expected to commence on AIM on
20 December 2007.
For further information, please contact:



Blavod Extreme Spirits plc
Richard Ambler (Managing Director) 0207 352 2096

Brewin Dolphin (Nominated Adviser)
Neil Baldwin/Alison Barrow 0845 270 8600





                      This information is provided by RNS
            The company news service from the London Stock Exchange