Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST plc

All information is at 30 June 2011 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              0.2%       3.2%       58.9%      51.9%     74.6%     
Share price                  1.1%      -1.0%       62.7%      56.9%     75.8%     
HGSC ex Inv Trust + AIM*    -1.8%       0.6%       29.4%      19.8%      6.5%      

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):           623.61p           
Net asset value Capital only (debt at fair value):          619.39p           
Net asset value incl. Income (debt at par value):           628.34p**         
Net asset value incl. Income (debt at fair value):          624.12p**         
Share price:                                                528.75p           
Discount to Capital only NAV (debt at par value):           15.2%             
Discount to Capital only NAV (debt at fair value):          14.6%             
Net yield:                                                  1.3%              
Total assets:                                               £329.6m^          
Gearing including income:                                   9.3%              
Ordinary shares in issue:                                   47,879,792^^      

**includes net revenue of 4.73p.
^includes current year revenue.
^^excludes 2,113,731 shares held in treasury.
 
Ten Largest Sector                                                         
Weightings                                                % of Total Assets
                                                                           
Software & Computer Services                                            9.8
Support Services                                                        8.7
Financial Services                                                      8.6
Electronic & Electrical Equipment                                       8.5
Industrial Metals & Mining                                              8.3
Oil & Gas Producers                                                     6.5
Industrial Engineering                                                  5.6
Media                                                                   5.6
Travel & Leisure                                                        5.2
Pharmaceuticals & Biotechnology                                         5.0
                                                                       ----
Total                                                                  71.8
                                                                       ====
Ten Largest Equity Investments (in alphabetical order)

Company

Abcam Group
Aveva Group
Bellway
City of London Investment Group
Fidessa group
Hargreaves Services
Hutchison China Meditech
Oxford Instruments
Senior
Victrex

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

During June, the Company's NAV per share rose by 0.2% on a capital only basis,
well ahead of the benchmark index which fell by 1.8%. The FTSE 100 Index fell
by 0.7%.

Oxford Instruments and Sierra Rutile contributed more than 0.25% to relative 
performance during the month. Oxford Instruments announced strong full year 
results with revenue growth, all organic, of 24%, and pre tax profits up 120%. 
It produces instruments and systems which facilitate the analysis of materials 
at the atomic level. Markets are industrial and research and are worldwide. 
The company also announced two important strategic acquisitions negotiated 
with vendors keen to sell to Oxford Instruments because of its culture, skill 
base and management. Sierra Rutile produces mineral sands, and in particular 
high value rutile, from its operations in Sierra Leone. The company has a 
long production record but in recent years has not managed its activities 
and production well. This is now changing with access to spares, plant 
upgrades and improved training. Production should increase over the next 
12 months at a time when selling prices have risen sharply. With an additional 
dredge, which needs to be built, the company should be strongly profitable 
and cash generative in 2012/2013.

A few small holdings disappointed during the month, but the largest of these
detracted from performance by 13 basis points. We sold a number of holdings
where our conviction levels were not sufficiently high and trimmed a few
holdings where we felt valuations were looking rather full. There were no
significant new investments during the month.

20 July 2011

ENDS

Latest information is available by typing www.blackrock.co.uk/brsc on the
internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV
terminal). Neither the contents of the Manager's website nor the contents of
any website accessible from hyperlinks on the Manager's website (or any other
website) is incorporated into, or forms part of, this announcement.