Issue of Equity

CAPITAL GEARING TRUST plc

Issue of Ordinary Shares

The Board, in accordance with its stated intention to operate an informal
discount/premium control mechanism to satisfy major market supply and demand
imbalances, are pleased to announce the issue of 13,000 ordinary shares at a
price per share of £30.05 on 18 March 2011.

The shares were allotted for cash at a premium of 14.3% to the unaudited net
asset value as at 16 March 2011 and in accordance with the authority given to
the Directors at the 2010 Annual General Meeting to allot shares on a non
pre-emptive basis.

Following the issue, there are 2,847,906 ordinary shares in issue.

Enquiries:

Keith Hawkins, TMF Corporate Secretarial Services Limited

Email: [e-mail]

Date: 18 March 2011