Issue of Equity

CAPITAL GEARING TRUST plc

Promotion to the FTSE All-Share Index and Issue of Ordinary Shares


The Board are pleased to report that the Company has been promoted to the FTSE
All-Share Index with effect from Friday 17 June 2011.

In accordance with its stated intention to operate an informal discount/premium
control mechanism to satisfy major market supply and demand imbalances, the
Board can also report that to satisfy further market demand the Company issued
25,000 ordinary shares of 25p each (the `Shares') at a price per share of £31.37
on 20 June 2011.

The Shares were allotted for cash at a premium of 14.99% to the unaudited net
asset value as at 17 June 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.

In accordance with Disclosure and Transparency Rule 5.6.1A, the Company would
also like to notify the market that, following the issue of the Shares, the
Company's issued share capital consists of 2,919,906 ordinary shares of 25p
each with voting rights. The Company holds no shares in Treasury.

Therefore, the total number of voting rights in the Company following the issue
of the Shares is 2,919,906.

The above figure may be used by shareholders as the denominator for the
calculations by which they will determine if they are required to notify their
interest in, or a change to their interest in, Capital Gearing Trust plc under
the FSA's Disclosure and Transparency Rules.

Enquiries:

Keith Hawkins, TMF Corporate Secretarial Services Limited
Email: [e-mail]

Date: 20 June 2011