25 September 2025

British Smaller Companies VCT plc and British Smaller Companies VCT2 plc (together the "Companies")

Publication of a Prospectus

The Companies are pleased to announce that they have today launched a new share offer in the 2025/26 tax year to raise, in aggregate, up to £60 million, with an over-allotment facility of up to a further £25 million, in aggregate, by way of prospectus offers of new ordinary shares for subscription (the "Offers").

The Offers open on 25 September 2025. Applications will be processed from 2 October 2025 and the deadline for the receipt of applications and cleared funds is 27 March 2026, or earlier if the Offers become fully subscribed.

The Companies have issued a prospectus relating to the Offers (the "Prospectus"). The proceeds will be allocated between the Companies in accordance with the terms set out in the Prospectus.

Pursuant to the Offers, YFM Private Equity Limited, the Companies' Manager, will receive a fee of 3.0 per cent of the total amount remitted to the Companies under the Offers, including any adviser charges to be facilitated by the Companies ("Application Amounts") or 3.5 per cent of the Application Amounts for applications received from applicants who have not invested their money through a financial intermediary/adviser and have invested directly into the Companies. These arrangements constitute related party transactions falling within UK Listing Rule 8.2.1R. The board of each Company believes that these arrangements are fair and reasonable as far as the shareholders of their respective Company are concerned and have been so advised by Howard Kennedy Corporate Services LLP, as sponsor to each Company.

The Prospectus is available from the Companies' website:

www.bscfunds.com

and will shortly be available for inspection at the National Storage Mechanism, which is located at:

https://data.fca.org.uk/#/nsm/nationalstoragemechanism

Applicants will be able to apply online at www.bscfunds.com and copies of the application form and related notes will be posted/emailed to shareholders of the Companies based on their shareholder preferences.

For further information, please contact:

Marcus Karia           YFM Equity Partners                                                                             Tel:  0113 244 1000

Alex Collins              Panmure Liberum                                                                                  Tel:  0207 886 2767