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30 June 2026

Palace Capital PLC

 ("Palace Capital" or the "Company")

Launch of Buyback Programme

The Board of Directors (the "Board") of Palace Capital announces that it is commencing a share buyback programme of up to 3,633,880 ordinary shares of 10 pence each in the capital of the Company ("Ordinary Shares") (the "Buyback Programme"), being the remaining amount of authority as granted by shareholders at the Company's annual general meeting on 9 July 2025 (the "Share Buyback Authority").

The Company has instructed Cavendish to conduct the Buyback Programme on its behalf on a broker-managed basis, with trading decisions taken independently of the Company.

The Buyback Programme will be conducted in accordance with the terms of the Company's Share Buyback Authority to make market purchases of its own Ordinary Shares granted to it by shareholders on 9 July 2025, including that the price paid per Ordinary Share will not be less than the nominal value of the Company, and the maximum price paid per Ordinary Share will be no more than the higher of either 105 per cent. of the average middle market closing price of an Ordinary Share for the five business days preceding the date of any buyback; and an amount equal to the higher of the price of the last independent trade of an Ordinary Share and the highest current independent bid for an Ordinary Share. The Authority will expire on 9 October 2026 or, if earlier, at the conclusion of the Company's next annual general meeting.

The Company intends to hold all Ordinary Shares so purchased in treasury during the course of the Buyback Programme, and following completion of the Buyback Programme will seek to cancel the Ordinary Shares.

Due to the limited liquidity in the issued Ordinary Shares, a buyback of Ordinary Shares pursuant to the Authority on any given trading day may represent a significant proportion of the daily trading volume in the Ordinary Shares and could exceed 25 per cent. of the average daily trading volume and, accordingly, the Company will not benefit from the exemption contained in Article 5(1) of Regulation (EU) No. 596/2014 as adopted into UK law by the European Union (Withdrawal) Act 2018.

Concert Party

The Concert Party holds, in aggregate, 5,833,606 Shares representing an aggregate interest of 29.88% of the Company's issued share capital. Independent shareholders should be aware that following completion of the Buyback Programme, the members of the Concert Party will be interested in a maximum of 5,833,606 Ordinary Shares, representing approximately 36.71% of the Company's total voting rights, assuming full utilisation of the Share Buyback Authority and the Concert Party neither participates in the Buyback Programme nor sells any Ordinary Shares.

The details of the effect of an exhaustive Buyback Programme on the aggregate interests of the Concert Party are set out in paragraph 3.3(a) of Part 3 (Additional Information) of the Circular sent to shareholders.

Following the Buyback Programme, the members of the Concert Party would be interested in Ordinary Shares carrying 30% or more of the voting rights of the Company but will not hold Ordinary Shares carrying more than 50% of the voting rights of the Company. For so long as they continue to be acting in concert, any increase in their aggregate interests in shares will be subject to the provisions of Rule 9.

The Company will make further announcements in due course following any share purchases under the Buyback Programme.

Enquiries:

Palace Capital plc
Christian Kappelhoff-Wulff, Non-Executive Chairman
[email protected]

Broker

Cavendish

Matt Lewis, Head of Corporate Broking
Tel: +44 (0)20 7397 1920
[email protected]

Important Notices

Cavendish Capital Markets Limited ("Cavendish") is authorised and regulated in the United Kingdom by the Financial Conduct Authority. Cavendish is acting exclusively for the Company and for no one else in connection with the Buyback Programme and will not be responsible to anyone other than the Company for providing the protections afforded to clients of Cavendish, nor for providing advice in relation to this announcement or any other matters referred to herein. Neither Cavendish nor any of its affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Cavendish in connection with the Buyback Programme, this announcement, any statement contained herein or otherwise.