NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES OF AMERICA, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SOMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS, ANY STATE OF THE UNITED STATES OF AMERICA OR THE DISTRICT OF COLUMBIA) (THE "UNITED STATES") OR TO ANY U.S. PERSON (AS DEFINED BELOW) OR TO ANY OTHER PERSON WHERE OR TO WHOM IT IS UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE THIS DOCUMENT.

(SEE "OFFER AND DISTRIBUTION RESTRICTIONS" BELOW)

LLOYDS BANKING GROUP PLC ANNOUNCES TENDER ACCEPTANCE AMOUNTS AND RESULTS FOLLOWING THE GENERAL EXPIRATION DEADLINE OF TENDER OFFERS IN RELATION TO ITS THREE SERIES OF STERLING PREFERENCE SHARES

22 November 2021

On 10 November 2021, Lloyds Banking Group plc (the "Offeror") launched an invitation to the holders of its outstanding preference shares detailed below (the "Preference Shares") to tender any and all such Preference Shares for purchase by the Offeror for cash (each such invitation an "Offer" and, together, the "Offers"). The Offers were made on the terms and subject to the conditions set out in the tender offer memorandum dated 10 November 2021 (the "Tender Offer Memorandum") and are subject to the offer and distribution restrictions set out below.

Capitalised terms not otherwise defined in this announcement have the same meaning as assigned to them in the Tender Offer Memorandum.

The Offeror today announces its acceptance of validly submitted Tender Instructions received by the Receiving Agent prior to 1.00 p.m. (London time) on 19 November 2021 (the "General Expiration Deadline").

Shareholders should note that the Offers remain open to Retail Holders, as further detailed in the section entitled "LBGSA Tender Deadline and Retail-Only Expiration Deadline" below.

ACCEPTANCE OF VALID TENDER INSTRUCTIONS RECEIVED PRIOR TO THE GENERAL EXPIRATION DEADLINE

The Offeror hereby announces that it accepts for purchase all Preference Shares validly tendered pursuant to the Offers prior to the General Expiration Deadline, as set out in the table below:

¹ Prior to the General Expiration Deadline.

² For further detail on the Purchase Price and accrued and unpaid dividends payable, please refer to the Tender Offer Memorandum.
³ After settlement on the General Settlement Date.
⁴ Redeemable, at the option of the Offeror, on 15 September 2024 or any dividend payment date falling on each fifth anniversary of such date thereafter, at their liquidation preference amount.

The Settlement Date for Institutional Holders and for Retail Holders whose respective validly submitted Tender Instructions were received by the Receiving Agent prior to the General Expiration Deadline is expected to be 30 November 2021.

Unless otherwise determined by the Offeror in its sole and absolute discretion, any Tender Instructions received by the Receiving Agent from Institutional Holders after the General Expiration Deadline have not been and will not be accepted. For technical reasons, however, any such Tender Instructions will only be released from escrow by the Receiving Agent at 1.00 p.m. (London time) on 9 December 2021 (the "Retail-Only Expiration Deadline").

LBGSA TENDER DEADLINE AND RETAIL-ONLY EXPIRATION DEADLINE

Provided that Retail Holders have not previously submitted Tender Instructions in respect of their Preference Shares prior to the General Expiration Deadline, the Offers have not expired for Retail Holders (including participants who hold 6.475% Preference Shares through the LBGSA Nominee).

The expiration deadline for participants who hold 6.475% Preference Shares through the LBGSA Nominee is 1.00 p.m. (London time) on 6 December 2021 (the "LBGSA Tender Deadline").

The expiration deadline for other Retail Holders of the Preference Shares is the Retail-Only Expiration Deadline.

The Settlement Date for Retail Holders whose respective validly submitted Tender Instructions are received by the Receiving Agent after the General Expiration Deadline and prior to the Retail-Only Expiration Deadline is expected to be 15 December 2021.

Shareholders are advised to check with any bank, securities broker or other intermediary through which they hold Preference Shares whether such intermediary would require to receive instructions from a Shareholder in order for that Shareholder to be able to participate in, or (in the limited circumstances in which revocation is permitted) revoke their instruction to participate in, the Offers before the deadlines specified above. The deadlines set by any such intermediary and CREST for the submission of Tender Instructions will be earlier than the relevant deadlines specified above. Shareholders are also advised to ensure that, where any documents are posted to the Receiving Agent, they allow sufficient time to ensure receipt of such documents by the Receiving Agent by the relevant deadline. All documentation sent to or from a Shareholder is sent at such Shareholder's own risk.

A "Retail Holder" is a holder of Preference Shares (a) who holds less than £100,000 in aggregate liquidation preference of the Preference Shares of the relevant Series, (b) whose ordinary activities do not involve that person buying, selling, subscribing for or underwriting instruments such as the Preference Shares for the purpose of a business carried on by that person, and (c) who it is reasonable to expect will not carry on the activities described in (b) above for the purposes of a business carried on by that person.

An "Institutional Holder" is any Shareholder that is not a Retail Holder.

TOTAL CONSIDERATION

The total consideration payable to each Shareholder in respect of Preference Shares validly submitted for tender and accepted for purchase by the Offeror will be an amount in cash equal to (i) the Purchase Price for the relevant Preference Shares multiplied by the aggregate liquidation preference of Preference Shares validly tendered and delivered by such Shareholder and accepted by the Offeror for purchase (rounded to the nearest £0.01, with £0.005 being rounded upwards) and (ii) in the case of Preference Shares accepted for purchase from Retail Holders whose respective validly submitted Tender Instructions are received by the Receiving Agent after the General Expiration Deadline and prior to the Retail-Only Expiration Deadline only, the Incremental Accrued Dividend Payment in respect of such Preference Shares.

INDICATIVE TIMETABLE

The following table sets out the expected dates and times of the key events relating to the Offers following the date of this announcement. This is an indicative timetable and is subject to change. Accordingly, the actual timetable may differ from the timetable below.

FURTHER INFORMATION

This announcement contains inside information in relation to the Preference Shares and is disclosed in accordance with the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR"). For the purposes of UK MAR and Article 2 of the binding technical standards published by the Financial Conduct Authority in relation to UK MAR as regards Commission Implementing Regulation (EU) 2016/1055, this announcement is made by Douglas Radcliffe, Group Investor Relations Director.

For further information please contact:

Group Corporate Treasury:

Liz Padley
Head of Capital Structuring, Holding Company and Resolution
Telephone: +44 (0)20 7158 1737
Email: [email protected]

Investor Relations:

Douglas Radcliffe

Group Investor Relations Director

Telephone: +44 (0)20 7356 1571

Email: [email protected]

Corporate Affairs:

Matthew Smith
Head of Media Relations
Tel: +44 (0) 20 7356 3522
Email: [email protected]

Requests for information in relation to the Offers should be directed to:

* Lines are open from 8.30 a.m. to 5.30 p.m. (UK time) Monday to Friday (excluding English and Welsh public holidays). Calls to the helpline from outside the UK will be charged at the applicable international rate. Please note that calls may be recorded and randomly monitored for security and training purposes. Please note that Equiniti Limited and Equiniti Financial Services Limited cannot provide advice on the merits of the Offers or give financial, tax, investment or legal advice.

** Open from 8.30 a.m. to 5.30 p.m. (UK time) Monday to Friday. Please note that Lucid Issuer Services Limited cannot provide advice on the merits of the Offers or give financial, tax, investment or legal advice

The Offeror launched, contemporaneously with the launch of the Offers, a liability management exercise in respect of two series of U.S. dollar preference shares issued by the Offeror and represented by American Depositary Shares. This announcement does not relate to the U.S. dollar preference shares liability management exercise.

DISCLAIMER

This announcement must be read in conjunction with the announcement relating to the Offers published by the Offeror via RNS on 10 November 2021 and the Tender Offer Memorandum. This announcement, the announcement relating to the Offers published via RNS on 10 November 2021 and the Tender Offer Memorandum contain important information which should be read carefully before any decision is made with respect to the Offers. If any Shareholder is in any doubt as to the action it should take or is unsure of the impact of the Offers, it is recommended to seek its own financial and legal advice, including as to any tax consequences, from its stockbroker, bank manager, solicitor, accountant or other independent financial or legal adviser. Any individual or company whose Preference Shares are held on its behalf by a custodian, broker, dealer, commercial bank, trust company or other nominee or intermediary must contact such entity if it wishes to tender Preference Shares in the relevant Offer. None of the Offeror, the Dealer Managers, the Receiving Agent or the Information Agent (or any of their respective directors, officers, employees, agents or affiliates) is providing Shareholders with any legal, business, tax or other advice in the Tender Offer Memorandum or this announcement. Shareholders should consult with their own advisers as needed to assist them in making an investment decision and to advise them whether they are legally permitted to tender their Preference Shares for cash.

OFFER AND DISTRIBUTION RESTRICTIONS

Neither this announcement nor the Tender Offer Memorandum constitutes an offer or an invitation to participate in the Offers in the United States or in any other jurisdiction in which, or to any person to or from whom, it is unlawful to make such offer or invitation or for there to be such participation under applicable laws. The distribution of this announcement and the Tender Offer Memorandum in certain jurisdictions may be restricted by law. Persons into whose possession this announcement and/or the Tender Offer Memorandum comes are required by each of the Offeror, the Dealer Managers, the Receiving Agent and the Information Agent to inform themselves about and to observe any such restrictions.

United States

The Offers are not being made and will not be made, directly or indirectly, in or into, or by use of the mails of, or by any means or instrumentality of interstate or foreign commerce of, or of any facilities of a national securities exchange of, the United States or to any U.S. Person (as defined in Regulation S of the United States Securities Act of 1933, as amended (each, a "U.S. Person")). This includes, but is not limited to, facsimile transmission, electronic mail, telex, telephone, the internet and other forms of electronic communication. Accordingly, copies of the Tender Offer Memorandum and any other documents or materials relating to the Offers are not being, and must not be, directly or indirectly, mailed or otherwise transmitted, distributed or forwarded (including, without limitation, by custodians, nominees or trustees) in or into the United States or to a U.S. Person and the Preference Shares cannot be tendered in the Offers by any such use, means, instrumentality or facility or from or within or by persons located or resident in the United States or by any U.S. Person. Any purported tender of Preference Shares in the Offers resulting directly or indirectly from a violation of these restrictions will be invalid and any purported tender of Preference Shares made by a person located in the United States, a U.S. Person, by any person acting for the account or benefit of a U.S. Person, or by any agent, fiduciary or other intermediary acting on a non-discretionary basis for a principal giving instructions from within the United States will be invalid and will not be accepted.

Each holder of Preference Shares participating in an Offer will represent that it is not a U.S. Person, is not located in the United States and is not participating in such Offer from the United States, or it is acting on a non-discretionary basis for a principal located outside the United States that is not giving an order to participate in such Offer from the United States and who is not a U.S. Person. For the purposes of this and the above paragraph, "United States" means the United States of America, its territories and possessions (including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the Northern Mariana Islands), any state of the United States of America and the District of Columbia.

United Kingdom

The communication of this announcement and the Tender Offer Memorandum by the Offeror and any other documents or materials relating to the Offers is not being made, and such documents and/or materials have not been approved, by an authorised person for the purposes of section 21 of the Financial Services and Markets Act 2000 (the "FSMA"). Accordingly, such documents and/or materials are not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of such documents and/or materials is exempt from the restriction on financial promotions under section 21 of the FSMA on the basis that it is only directed at and may be communicated to (1) those persons who are existing members or creditors of the Offeror or other persons within Article 43(2) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, and (2) to any other persons to whom these documents and/or materials may lawfully be communicated.

France

This announcement, the Tender Offer Memorandum and any other documents or offering materials relating to the Offers may not be distributed (directly or indirectly) in the Republic of France except to qualified investors (investisseurs qualifiés) as defined in Article 2(e) of the EU Prospectus Regulation. Neither this announcement, the Tender Offer Memorandum nor any other documents or offering materials relating to the Offers have been and will not be submitted for clearance to nor approved by the Autorité des marchés financiers.

Belgium

None of this announcement, the Tender Offer Memorandum nor any other documents or materials relating to the Offers have been submitted to or will be submitted for approval or recognition to the Financial Services and Markets Authority ("Autorité des services et marches financiers / Autoriteit financiële diensten en markten") and, accordingly, the Offers may not be made in Belgium by way of a public offering, as defined in Articles 3 and 6 of the Belgian Law of 1 April 2007 on public takeover bids (the "Belgian Takeover Law") as amended or replaced from time to time. Accordingly, the Offers may not be advertised and the Offers will not be extended, and neither the Tender Offer Memorandum nor any other documents or materials relating to the Offers (including any memorandum, information circular, brochure or any similar documents) has been or shall be distributed or made available, directly or indirectly, to any person in Belgium other than (i) to persons which are "qualified investors" in the sense of Article 2 (e) of the EU Prospectus Regulation, acting on their own account; or (ii) in any other circumstances set out in Article 6, §4 of the Belgian Takeover Law . The Tender Offer Memorandum has been issued only for the personal use of the above qualified investors and exclusively for the purpose of the Offers. Accordingly, the information contained in the Tender Offer Memorandum may not be used for any other purpose or disclosed to any other person in Belgium.

Italy

Neither this announcement, the Tender Offer Memorandum nor any other documents or materials relating to the Offers have been or will be submitted to the clearance procedure of the Commissione Nazionale per le Società e la Borsa ("CONSOB") pursuant to Italian laws and regulations.

The Offers are being carried out in the Republic of Italy as exempted offers pursuant to article 101-bis, paragraph 3-bis of the Legislative Decree No. 58 of 24 February 1998, as amended (the "Financial Services Act") and article 35-bis, paragraph 4 of CONSOB Regulation No. 11971 of 14 May 1999, as amended (the "Issuers' Regulation").

A Shareholder located in the Republic of Italy can tender some or all of its Preference Shares through authorised persons (such as investment firms, banks or financial intermediaries permitted to conduct such activities in the Republic of Italy in accordance with the Financial Services Act, CONSOB Regulation No. 20307 of 15 February 2018, as amended from time to time, and Legislative Decree No. 385 of 1 September, 1993, as amended) and in compliance with applicable laws and regulations or with requirements imposed by CONSOB or any other Italian authority.

Each intermediary must comply with the applicable laws and regulations concerning information duties vis-à-vis its clients in connection with the Preference Shares or the Offers.

General

Neither this announcement, the Tender Offer Memorandum, any other documents or materials relating to the Offers nor the electronic transmission thereof constitutes an offer to buy or the solicitation of an offer to sell Preference Shares (and tenders of Preference Shares for purchase pursuant to the Offers will not be accepted from Shareholders) in any circumstances in which such offer or solicitation is unlawful. In those jurisdictions where the securities, blue sky or other laws require an Offer to be made by a licensed broker or dealer and any of the Dealer Managers or any of their affiliates is such a licensed broker or dealer in any such jurisdiction, such Offer shall be deemed to be made by such Dealer Manager or such affiliate, as the case may be, on behalf of the Offeror in such jurisdiction.

In addition to the representations referred to above in respect of the United States, the United Kingdom, France, Belgium and Italy, each Shareholder participating in an Offer will also be deemed to give certain other representations, warranties and undertakings and make certain agreements as set out in "Procedures for Participating in the Offers" in the Tender Offer Memorandum. will be deemed to give certain representations in respect of the other jurisdictions referred to above and generally as described in "Procedures for Participating in the Offers". Any tender of Preference Shares for purchase pursuant to the Offers from a Shareholder that is unable to make these representations will not be accepted.

Each of the Offeror, the Dealer Managers and the Information Agent reserves the right, in its sole and absolute discretion (and without prejudice to the relevant Shareholder's responsibility for the representations made by it), to investigate, in relation to any tender of Preference Shares for purchase pursuant to an Offer, whether any such representation given by a Shareholder is correct and, if such investigation is undertaken and as a result the Offeror determines (for any reason) that such representation is not correct, such tender or submission may be rejected.