AGM Statement

Falkland Islands Holdings PLC
13 September 2006


Falkland Islands Holdings plc
('FIH', 'the Company' or 'the Group')

AGM Statement and Trading update

The following comments were made by Falkland Islands Holdings Chairman, David
Hudd, at the Company's Annual General Meeting, held at 11.15 am today:

'The Group's operations in the Falklands Islands have continued to produce
satisfactory results. Fishing support services made a stronger start to the year
following improved catches of Illex squid in April and May whilst   insurance
broking and property rentals, have continued to make progress. A programme of
refurbishment has been undertaken at the Upland Goose Hotel to enhance its
customer appeal in readiness for the Austral summer. Retailing operations have
performed satisfactorily during the winter period. The Group's DIY business has
suffered from a slowdown in building activity in the Islands and has also been
faced by stronger local competition. However, the shortfalls seen in DIY sales
have been offset by encouraging growth in sales at the West Store supermarket
which continues to expand its product range and at the end of August overall
retail sales were marginally ahead of 2005.

The Portsmouth Harbour Ferry Company is performing well and after adjusting for
the boost provided to last year by the maritime festivals, passenger numbers are
in line with our expectations and prior year levels. In the absence of the
festivals, revenues from leisure cruising has declined and these loss making
activities are being discontinued to release capacity which will allow the
extension and improvement of ferry services.

The exploration activities of Falkland Oil and Gas ('FOGL') and Falkland Gold
and Minerals ('FGML'), in which the Group has a 16.3% and 14.4% shareholding
respectively, have continued to make good progress.

FOGL has completed its second 2D seismic programme and has now recorded 22,450
km of seismic, mapping over 100 prospects and leads.  A programme of Controlled
Source Electro-Magnetic surveys and infill 2D seismic is now planned to grade
and reduce the risk profile of the prospect inventory, in preparation for the
selection of drilling locations. Concurrently, discussions with potential third
party participants and exploration partners are being progressed.  FOGL's
objective is to commence drilling in 2008 and a number of potential rig options
are being evaluated.

FGML is now well into its second year of exploration on the Islands. Its work
programme which involves ground magnetic, sampling and trenching and drilling
has continued through the winter and is likely to continue well into 2007. The
programme will be funded from FGML's existing cash resources.

Your Board is confident that the level of underlying profitability will be
maintained in the current year.'


                                                               13 September 2006

Enquiries:

Falkland Islands Holdings
David Hudd, Chairman                                          Tel: [phone]
John Foster Managing Director                                 Tel: [phone]

College Hill                                                  Tel: [phone]
Nick Elwes

www.fihplc.com


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