BlackRock Emerging Europe plc                         

      Half Yearly Financial Results Announcement for the Six Months ended 31 July  
                                         2017                                      

    FINANCIAL HIGHLIGHTS
     

                                                          As at            As at               
                                                   31 July 2017  31 January 2017        Change 
    Attributable to ordinary shareholders           (unaudited)        (audited)             % 
                                                                                               
    US dollar                                                                                  
                                                                                               
    Net assets (US$'000)                                165,552          154,951           6.8 
                                                                                               
    Net asset value per ordinary share (US$ cents)      460.94c          431.28c           6.9 
                                                                                               
    - with income reinvested                                                               8.6 
                                                                                               
    MSCI Emerging Europe 10-40 Index (net return)1       434.23           404.84           7.3 
                                                                                               
    Ordinary share price (mid-market)2                  427.33c          378.06c          13.0 
                                                                                               
    - with income reinvested                                                              15.0 
                                                                                               
                                                       --------         --------      -------- 
                                                                                               
    Sterling                                                                                   
                                                                                               
    Net assets (£'000)2                                 125,570          123,163           2.0 
                                                                                               
    Net asset value per ordinary share2                 349.62p          342.80p           2.0 
                                                                                               
    - with income reinvested                                                               3.7 
                                                                                               
    MSCI Emerging Europe 10-40 Index (net return)1       329.37           321.79           2.4 
                                                                                               
    Ordinary share price (mid-market)2                  324.13p          300.50p           7.9 
                                                                                               
    - with income reinvested                                                               9.8 
                                                                                               
                                                       --------         --------      -------- 
                                                                                               
    Discount to net asset value                            7.3%            12.3%             - 
                                                                                               
                                                       --------         --------      -------- 
                                                                                               
    Gross market exposure3                                99.2%           103.1%             - 
                                                                                               
                                                        =======          =======       ======= 

    Sources: BlackRock and Datastream.

    1    Net return indices calculate the reinvestment of dividends net of
    withholding taxes using the tax rates applicable to institutional investors who
    are not resident in the local market.
    2    Based on a £:US$ exchange rate of 1.3184 (31 January 2017: 1.2581).
    3    Long positions plus short positions as a percentage of net assets.

                                                    For the six   For the six               
                                                         months        months               
                                                          ended         ended               
                                                   31 July 2017  31 July 2016        Change 
                                                    (unaudited)   (unaudited)             % 
                                                                                            
    Revenue                                                                                 
                                                                                            
    Net revenue after taxation (US$'000)                  4,854         2,341         107.3 
                                                                                            
    Revenue return per ordinary share                    13.51c         6.47c         108.8 
                                                                                            
                                                       ========      ========      ======== 

    Source: BlackRock.

    CHAIRMAN'S STATEMENT
    for the six months ended 31 July 2017

    MARKET OVERVIEW
    The Company has made good progress in the period under review. Greece in
    particular performed very strongly on the back of a successful resolution to
    discussions on its third bailout and its return as a borrower to the
    international bond markets. Turkey also performed well, as the referendum on
    constitutional change removed some of the political uncertainty, allowing
    investors to focus on the improving economic and earnings outlook. Despite an
    improving economy, returns in Russia lagged those of the wider region,
    principally due to the likelihood of a continuation of US sanctions, which some
    had hoped might be reduced under the new US administration. Elsewhere in the
    region Hungary, Poland and the Czech Republic also performed strongly on the
    back of expectations of an improving global growth outlook.

    PERFORMANCE
    The Company's net asset value ("NAV") returned 8.6% and the share price 15.0%
    in US dollar terms (3.7% and 9.8% respectively in sterling terms). The MSCI
    Emerging Europe 10-40 Index returned 7.3% and 2.4% in US dollar and sterling
    terms. Since the appointment of BlackRock as investment manager on 1 May 2009
    the Company's NAV has increased by 92.7% in US dollar terms and 116.5% in
    sterling terms, compared with the benchmark returns of 48.9% and 67.4%
    respectively (all percentages with income reinvested).

    Details of the factors which have contributed to performance are set out in the
    Investment Manager's Report.

    Since the period end and up until the close of business on 26 September 2017
    the Company's NAV has increased by 5.5% in US dollar terms and increased by
    3.6% in sterling terms compared with an increase in the benchmark of 4.5% in US
    dollar terms and an increase of 2.7% in sterling terms (all percentages with
    income reinvested).

    EARNINGS
    In the six months to 31 July 2017, revenue earnings per share were 13.51 cents
    (31 July 2016:6.47 cents) reflecting, inter alia, the portfolio's increased
    exposure to higher yielding Russian companies. It is expected that the Company
    will pay a dividend based on the net revenue generated by the portfolio in
    respect of the year ended 31 January 2018.

    PERIODIC OPPORTUNITIES FOR RETURN OF CAPTIAL
    Shareholders should note that it was agreed in June 2013 that, prior to 21 June
    2018, the Board would formulate and submit proposals (which may constitute a
    tender offer and/or other method of distribution) to provide shareholders with
    an opportunity to realise the value of their investment in the Company at NAV
    less applicable costs.

    As we approach June 2018 your Board has been considering several different
    options for the future of the Company. Clearly we will be seeking the support
    of shareholders for any proposals that we make and an announcement will be made
    once the Board has completed its deliberations.

    DISCOUNT TO NAV
    The Board operates a discount control policy to manage the discount within a
    10% target. Our ability to do this is driven by several factors including fund
    performance, the periodic opportunity to realise value at close to NAV, an
    interim performance based tender offer and intermittent share buybacks, where
    shares are seen as overhanging the market. I am pleased to report that the
    combination of these factors has seen our discount narrow substantially during
    the period, not least driven by the Company's performance. We have demonstrated
    consistent outperformance of both our benchmark index and the Morningstar peer
    group over one year, three years and since BlackRock started managing the
    portfolio in 2009*. Our discount as at close of business on 26 September 2017
    was 5.5% which compares favourably with the averages achieved in our sector.

    SHARE BUYBACKS
    During the period under review, the Company repurchased 11,800 ordinary shares
    at an average price of 311.13p and at an average discount to NAV of 10.6% and a
    total cost of £37,000 including stamp duty and commission. No further shares
    have been repurchased since the period end up to close of business on 26
    September 2017.

    OUTLOOK
    Whilst many commentators are concerned that the major developed markets are now
    at - or approaching - their all-time peaks, Emerging European equity markets
    stand out as a rare value opportunity. Indeed, even after the strong gains of
    the last eighteen months, the index is still 40% below its pre-crisis peak and
    the portfolio managers refer to a 'lost decade' of performance. We believe that
    Emerging Europe will continue to benefit from economic recovery and that the
    attractive valuations provide compelling opportunities for investors in our
    region. Your Board therefore view the outlook for the region with considerable
    confidence.

    Neil England
    28 September 2017

    *periods to 31 August 2017.

    INTERIM MANAGEMENT REPORT AND RESPONSIBILITY STATEMENT

    The Chairman's statement and the Investment Manager's Report give details of
    important events which have occurred during the period and their impact on the
    financial statements.

    PRINCIPAL RISKS AND UNCERTAINTIES
    The principal risks faced by the Company can be divided into various areas as
    follows:

      * Counterparty risk;
       
      * Investment performance risk;
       
      * Legal & compliance risk;
       
      * Operational risk;
       
      * Market risk (including political risk);
       
      * Financial risk; and
       
      * Marketing risk.
       
    The Board reported on the principal risks and uncertainties faced by the
    Company in the Annual Report and Financial Statements for the year ended 31
    January 2017. A detailed explanation can be found on pages 9 to 11 and in note
    18 on pages 56 to 66 of the Annual Report and Financial Statements which are
    available on the website maintained by BlackRock, at www.blackrock.co.uk/beep.

    In the view of the Board, there have not been any changes to the fundamental
    nature of these risks since the previous report and these principal risks and
    uncertainties are equally applicable to the remaining six months of the
    financial year as they were to the six months under review.

    GOING CONCERN
    The Board will submit proposals at a General Meeting immediately following the
    Company's Annual General Meeting in June 2018 whereby shareholders will have
    the opportunity to realise the value of their investment in the Company at NAV
    less applicable costs. As at the date of this report, the voting intentions of
    the majority of shareholders are not known and will be further influenced by
    events leading up to the proposals being presented.

    Given that the outcome of the proposals to be put to shareholders is uncertain,
    the Directors are satisfied that the Company has adequate resources to continue
    in operational existence for the foreseeable future and is financially sound.
    For this reason they continue to adopt the going concern basis in preparing the
    financial statements. The Company has a portfolio of investments which are
    considered to be readily realisable and is able to meet all of its liabilities
    from its assets and income generated from these assets. Ongoing charges
    (excluding finance costs and taxation) for the year ended 31 January 2017 were
    approximately 1.2% of net assets.

    RELATED PARTY DISCLOSURE AND TRANSACTIONS WITH THE INVESTMENT MANAGER
    BlackRock Fund Managers Limited (BFM) was appointed as the Company's AIFM with
    effect from 2 July 2014. BFM has (with the Company's consent) delegated certain
    portfolio and risk management services, and other ancillary services, to
    BlackRock Investment Management (UK) Limited (BIM (UK)). Both BFM and BIM (UK)
    are regarded as related parties under the Listing Rules. Details of the
    management fees payable are set out in note 4 and note 12.

    The related party transactions with the Directors are set out in note 11.

    DIRECTORS' RESPONSIBILITY STATEMENT
    The Disclosure and Transparency Rules ("DTR") of the UK Listing Authority
    require the Directors to confirm their responsibilities in relation to the
    preparation and publication of the Interim Management Report and Financial
    Statements.

    The Directors confirm to the best of their knowledge that:

      * the condensed set of financial statements contained within the half yearly
        financial report has been prepared in accordance with the Financial
        Reporting Council's Standard, FRS 104 'Interim Financial Reporting'; and
       
      * the Interim Management Report together with the Chairman's Statement and
        Investment Manager's Report, include a fair review of the information
        required by 4.2.7R and 4.2.8R of the FCA's Disclosure and Transparency
        Rules.
       
    The half yearly financial report has not been audited or reviewed by the
    Company's Auditor.

    The half yearly financial report was approved by the Board on 28 September 2017
    and the above responsibility statement was signed on its behalf by the
    Chairman.

    Neil England
    For and on behalf of the Board
    28 September 2017

    INVESTMENT MANAGER'S REPORT

    MARKET REVIEW
    In the six months to 31 July 2017, the MSCI Emerging Europe 10-40 Index gained
    7.3% in US dollar terms and 2.4% in sterling terms (all percentages with income
    reinvested).

    Greece and Turkey were the main drivers of performance, while Russia was the
    largest detractor in the region over the period.

    Greece experienced a strong rally of +41.9% in US dollar terms over the 6
    months as progress was made on the second review of the country's third
    bailout. Greece agreed a deal with its creditors and enacted the necessary
    reforms enabling it to receive the next €8.5bn tranche of its bailout.
    Moreover, the successful conclusion allowed Greece to return to the bond
    markets for the first time since 2014. The 5 year Euro bonds were priced to
    yield 4.625%, below the initial guidance of 4.875% on the back of high demand.
    Moody's upgraded Greece's credit rating to Caa2 with a positive outlook and S&P
    raised Greece's sovereign credit-rating outlook to positive from stable.

    Turkey returned +36.1% in US dollar terms over the period. The constitutional
    referendum in April alleviated investor concerns regarding political
    uncertainty. The 'Yes' vote won the referendum with 51.4% of the vote to change
    Turkey from a parliamentary democracy into a presidential republic, cementing
    Erdogan's leadership position. With political clarity restored, the markets
    focused on the improving economy and significant growth in earnings, lifting
    the market higher.

    In the Central and Eastern European region, Hungary (+22.9%), Poland (+29.5%)
    and the Czech Republic (+21.7%) (all in US dollar terms) also joined in the
    rally in the period, reacting positively to rising global reflation
    expectations. These economies performed well with accelerating wage growth,
    unemployment at multi-decade lows, and a pickup in investment spending. The mix
    of rising consumer confidence coupled with higher inflation should allow the
    regional banks to recover from the damaging effects of years of low interest
    rates.

    Russia was the regional laggard, falling by 9.9% in US dollar terms over the
    period. The market's initial excitement that the incoming Trump administration
    might lift sanctions against Russia was met with disappointment, culminating in
    the US Congress passing a bill to impose incremental sanctions and to codify
    the existing sanctions, thus ensuring that President Trump wouldn't be able to
    remove sanctions without the approval of Congress. Despite this disappointment,
    the Russian economy continued to recover with expanded industrial production
    numbers, solid wage growth and credit impulse (change in net new credit issued
    as % of GDP over last four quarters) turning positive. The period also
    witnessed inflation falling rapidly and reaching the Central Bank of Russia's
    target of 4% faster than expected, allowing the bank to reduce interest rates
    and bring down the cost of borrowing.

    PERFORMANCE REVIEW
    The Company delivered +8.6% in US dollar terms (3.7% in sterling terms) for the
    six month period ending 31 July 2017, which outperformed the MSCI Emerging
    Europe 10-40 Index by +1.3% in US dollar terms (1.3% in sterling terms) over
    the same time period.

    Once again, our off-benchmark stocks provided the largest contribution to
    performance. In Russia, our off-benchmark position in Mail.Ru (+51.6% in US
    dollar terms), Russia's leading social network, contributed positively. Mail.Ru
    reported strong results as investors gained confidence in management's ability
    to put adjacent businesses (Youla, Delivery Club) onto the social networking
    platform. Also off-benchmark in Russia, Globaltrans (+33.2% in US dollar
    terms), the leading private freight rail transportation company, continued to
    benefit from rising transportation tariffs in Russia.

    In Turkey, Turk Hava Yollari performed strongly on the back of improving
    passenger numbers and higher margins, driving positive EPS revisions. We also
    made profits in our overweight in Turkish oil refiner, Tupras, supported by
    improving refining margins.

    In Greece, our overweight positions in banks, National Bank of Greece and Alpha
    Bank, benefited from the successful completion of the Second Review and the
    fall in Greek bond yields. Greek gaming company, OPAP (Greek Organisation of
    Football Prognostics), also performed well and we took profits as the company
    reached our target price.

    The main detractors from performance were in Poland and Russia. In Poland, an
    underweight in the refining sector, hurt relative returns. In addition, our
    off-benchmark positioning in Griffin Real Estate detracted as the stock
    continued to underperform post its IPO, though we maintain conviction in the
    company given attractive valuations. In Russia, the sanctions news hurt our
    holdings in Rosneft Oil Company and Novatek.

    OUTLOOK
    Emerging Europe is just beginning to leave behind a lost decade of performance.
    The strong gains of 2016 and the first six months of 2017 still leave the index
    more than 40% below its pre-crisis peak. Compared to the US S&P which is more
    than 55% above its pre-crisis peak, we believe that Emerging Europe continues
    to provide a fertile ground to deliver further returns. Emerging Europe
    valuations are still below historical trends, investor positioning remains
    light and the region has the potential to benefit from several positive
    developments. The equities trade on less than half the multiple of its
    developed peers, despite having higher dividend yields, growing earnings and
    strong free cash flows.

    In the Central European economies of Poland, Czech Republic and Hungary,
    inflationary pressures continue to build, giving the potential for the region's
    banking sector to break away from the destructive low rate environment. After
    several years of inflation rates being around zero and in some cases negative,
    we are seeing inflation returning to these countries on the back of accelerated
    wage growth, lower levels of unemployment and increased investment spending in
    the region. In particular, banks present an investment opportunity in our view
    given their sensitivity to a rise in interest rates.

    In Greece, we have seen successful progress made on the second review of the
    country's third bailout. Greece has just been able to access the financial
    markets for the first time in several years, which we feel will unlock
    significant pent-up investment demand into the country. The Greek financial
    sector is still much cheaper than its peers, reflecting its recent difficulties
    and provides room for substantial improvement if the situation normalises.
    Furthermore, the recent successful conclusion of the Second Bailout Review may
    eventually lead to the subsequent admission of Greek bonds into the ECB
    quantitative easing program, providing the government with a lower cost of debt
    and reassuring investors. This coupled with an acceleration of GDP growth
    should prove to be just what the banks need to leave behind any questions on
    solvency.

    In Russia, the sanctions noise has proved a headwind, however the positive
    monetary and fiscal policies are continuing. With the economy in good shape,
    improving consumer sentiment and record low inflation, there is room for
    interest rates to be cut, further aiding the economic recovery. Valuations are
    low, dividend yields are high and the potential remains for the market to
    re-rate on lower interest rates.

    Finally, Turkey remains a trading market prone to fits of exuberance and
    excessive pessimism. The economy has been normalizing and we expect further
    improvement in tourism trends. The expectations of falling interest rates
    coupled with the government's Credit Guarantee Fund are supporting the market,
    specifically the financial sector. However, the challenging political backdrop
    coupled with the spectre of tighter global liquidity constrains the upside in
    our view.

    Taken together, we believe that the economic recovery of the region, the
    uncorrelated equity returns of the different regional markets, the attractive
    valuations supported by high dividend yields, and the lost decade of
    performance yet to be recovered, continue to make the Emerging European
    equities an attractive opportunity for investors.

    Sam Vecht and Christopher Colunga
    BlackRock Investment Management (UK) Limited
    28 September 2017

    PORTFOLIO ANALYSIS
    as at 31 July 2017

                                                                                                                                    % 
                                                                                                   %                          MSCI EM 
                                                                                                 Net          %          %     Europe 
                                                                                             current        Net        Net      10-40 
                              %          %          %          %          %          %        assets/    assets     assets      Index 
                         Russia     Turkey     Poland     Greece    Ukraine      Other  (liabilities)  31.07.17   31.01.17   31.07.17 
                                                                                                                                      
                                                                                                                                      
    Consumer                  -          -          -          -          -          -             -          -        2.3        4.6 
    Discretionary                                                                                                                     
                                                                                                                                      
                       --------   --------   --------   --------   --------   --------      --------   --------   --------   -------- 
                                                                                                                                      
    Consumer Staples        4.2        2.1          -          -        2.6          -             -        8.9        4.8        6.1 
                                                                                                                                      
                       --------   --------   --------   --------   --------   --------      --------   --------   --------   -------- 
                                                                                                                                      
    Energy                 26.7        2.5       (1.9)         -          -          -             -       27.3       25.3       30.0 
                                                                                                                                      
                       --------   --------   --------   --------   --------   --------      --------   --------   --------   -------- 
                                                                                                                                      
    Financials              9.7        3.3        7.6        7.2          -          -             -       27.8       41.9       36.8 
                                                                                                                                      
                       --------   --------   --------   --------   --------   --------      --------   --------   --------   -------- 
                                                                                                                                      
    Health Care             2.5          -          -          -          -          -             -        2.5        3.2        1.1 
                                                                                                                                      
                       --------   --------   --------   --------   --------   --------      --------   --------   --------   -------- 
                                                                                                                                      
    Industrials             3.6        4.2          -          -          -          -             -        7.8        6.9        2.6 
                                                                                                                                      
                       --------   --------   --------   --------   --------   --------      --------   --------   --------   -------- 
                                                                                                                                      
    Information             2.6          -          -          -        2.5          -             -        5.1        5.4          - 
    Technology                                                                                                                        
                                                                                                                                      
                       --------   --------   --------   --------   --------   --------      --------   --------   --------   -------- 
                                                                                                                                      
    Materials               2.7        2.3          -          -          -          -             -        5.0        7.4       10.3 
                                                                                                                                      
                       --------   --------   --------   --------   --------   --------      --------   --------   --------   -------- 
                                                                                                                                      
    Telecommunication       5.3        2.9          -          -          -          -             -        8.2        3.0        4.8 
    Services                                                                                                                          
                                                                                                                                      
                       --------   --------   --------   --------   --------   --------      --------   --------   --------   -------- 
                                                                                                                                      
    Real Estate               -          -        2.9          -          -          -             -        2.9          -        0.5 
                                                                                                                                      
                       --------   --------   --------   --------   --------   --------      --------   --------   --------   -------- 
                                                                                                                                      
    Utilities                 -          -          -          -          -          -             -          -        2.9        3.2 
                                                                                                                                      
                       --------   --------   --------   --------   --------   --------      --------   --------   --------   -------- 
                                                                                                                                      
    Other                     -          -          -          -          -          -           4.5        4.5       (3.1)         - 
                                                                                                                                      
                       --------   --------   --------   --------   --------   --------      --------   --------   --------   -------- 
                                                                                                                                      
    % net assets           57.3       17.3        8.6        7.2        5.1          -           4.5      100.0          -          - 
    31.07.17                                                                                                                          
                                                                                                                                      
                       --------   --------   --------   --------   --------   --------      --------   --------   --------   -------- 
                                                                                                                                      
    % net assets           48.1       23.5        9.0        7.2        8.8        6.5          (3.1)         -      100.0          - 
    31.01.17                                                                                                                          
                                                                                                                                      
                       --------   --------   --------   --------   --------   --------      --------   --------   --------   -------- 
                                                                                                                                      
    % MSCI EM Europe       47.7       18.4       20.2        5.8          -        7.9             -          -          -      100.0 
    10-40 Index                                                                                                                       
    31.07.17                                                                                                                          
                                                                                                                                      
                       ========   ========   ========   ========   ========   ========      ========   ========   ========   ======== 

    The table above shows the analysis of the net assets as at 31 July 2017 by
    sector and region, compared with the net assets as at 31 January 2017 and the
    MSCI EM Europe 10-40 Index breakdown as at 31 July 2017.

    FIFTEEN LARGEST INVESTMENTS
    as at 31 July 2017

    Gazprom - 10.4% (2017: 9.0%) is Russia's largest gas producer and transporter,
    with a pipeline export monopoly. Despite its status as one of the most
    profitable companies in the region, the Russian energy giant has been out of
    favour with investors. We believe that the risks to Gazprom are more than
    priced into the valuation and the company pays an attractive dividend yield.

    Sberbank - 9.7% (2017: 10.4%) is Russia's largest bank, state-owned. It has
    branches throughout the country and a 46% share in the retail deposit market.
    The bank continues to build on its restructuring strategy which has driven much
    of its success over the past few years, improving its services and the
    efficiency with which they are delivered.

    Novatek - 6.7% (2017: 6.4%) is Russia's largest independent natural gas
    producer. The company is set to enter a new phase of growth through its Yamal
    LNG project, whilst the capital expenditure burden for the company is set to
    become much lighter, allowing the company to generate increasing amounts of
    free cash flow.

    Lukoil - 5.2% (2017: 6.0%) was formed in 1991 following the merger of three
    state-run companies in western Siberia. The three companies were called
    Langepasneftegaz, Urayneftegaz, and Kogalymneftegaz and this heritage is
    preserved in the company's current name. Today, the company is the largest
    privately-owned company by proved oil reserves. Lukoil is a highly competitive
    oil producer even at current low oil prices and generates significant free cash
    flow.

    PKO Bank Polski - 4.6% (2017: 3.8%) is Poland's largest bank. PKO has one of
    the strongest deposit franchises in the country, meaning it has a structurally
    lower cost of funding than its peers. The bank trades at attractive valuations
    relative to other Polish banks.

    Rosneft Oil Company - 4.4% (2017: nil) is the leader of Russia's petroleum
    industry include exploration, production, and refining. The company has been
    undergoing a restructuring phase, increasing efficiency, acquiring new assets
    within Russia and abroad, whilst disposing of stakes in mature fields. The
    production growth profile coupled with improving cash flow make the company
    attractive.

    Lenta - 4.2% (2017: nil) is one of the largest retail chains in Russia and the
    country's largest hypermarket chain founded in 1993 in St. Petersburg. Lenta
    operates 195 hypermarkets in 78 cities across Russia and 59 supermarkets in the
    Moscow, St. Petersburg, Novosibirsk and the Central region with a total of
    approximately 1,173,416 sq.m. of selling space. The company continues to grow
    its business, should benefit from improved consumer spending on the back of
    macro recovery with its stock trading at attractive valuations.

    National Bank of Greece - 4.2% (2017: 2.5%) is a leading banking and financial
    services company in Greece. It has one of the strongest capital bases in the
    country and has been showing steady improvement in the quality of its loan
    book.

    Turk Hava Yollari - 4.2% (2017: 2.7%) is the national carrier of Turkey with
    its headquarters in Istanbul. Leveraging its geographic location as a transit
    hub between Europe, Asia and Africa, the company has managed to grow its fleet
    of aircraft to over 300 and is one of the largest airlines in the world as
    measured by destinations served - reaching over 100 countries globally. We hold
    the stock on the expectation of improving margins and increasing passenger
    volumes.

    Globaltrans - 3.6% (2017: 4.2%) is a leading freight rail transportation group
    with operations in Russia, the CIS and the Baltic countries. The company
    provides services to more than 500 customers and its key customers include
    companies in, or suppliers to, a number of large Russian industrial groups in
    the metals and mining and the oil products and oil sectors.

    Mobile Telesystems (MTS) - 3.5% (2017: nil) is the largest mobile operator in
    Russia and CIS. The company provides mobile and fixed line voice and data
    telecommunications services, including data transfer, broadband, pay-television
    and various value-added services, as well as selling equipment and accessories.
    The industry has improving competitive dynamics and the stock pays an
    attractive dividend yield.

    TSKB - 3.3% (2017: 2.3%) is a Turkish development bank which focuses on lending
    to infrastructure projects. The bank's high-margin, stable revenue projects
    combined with their long funding maturities mean that TSKB has one of the most
    sustainable earnings streams in the Turkish banking sector.

    PZU - 3.0% (2017: 3.8%) is Poland's largest insurance company, active in both
    the life and non-life segments for over 16m customers. Its scale and
    unparalleled distribution network - both through direct sales and 12 thousand
    agents - provide a strong competitive advantage that enables the company to
    generate attractive returns.

    Alpha Bank - 3.0% (2017: 2.5%) is the fourth largest Greek bank by total
    assets, and the largest by market capitalization. The bank offers a wide range
    of high-quality financial products and services, including retail banking, SMEs
    and corporate banking, asset management and private banking, the distribution
    of insurance products, investment banking, brokerage and real estate
    management.

    Turkcell - 2.9% (2017: 3.0%) is the leading mobile phone operator in Turkey
    with a dominant market share position. Improved industry dynamics coupled with
    recent regulatory changes led us to believe that earnings had troughed.

    All percentages reflect the value of the holding as a percentage of net assets.
    Percentage in brackets represents the value of the holding at 31 January 2017.
    Together, the fifteen largest investments represents 72.9% of net assets (31
    January 2017: 72.9%).

    INVESTMENTS
    as at 31 July 2017

                                                                Market value/              
                                                    Country of      exposure          % of 
                                                     operation       US$'000    net assets 
                                                                                           
    Financials                                                                             
                                                                                           
    Sberbank                                            Russia        16,018          9.7% 
                                                                                           
    PKO Bank Polski                                     Poland         7,651          4.6% 
                                                                                           
    National Bank of Greece                             Greece         7,026          4.2% 
                                                                                           
    TSKB                                                Turkey         5,479          3.3% 
                                                                                           
    PZU                                                 Poland         5,046          3.0% 
                                                                                           
    Alpha Bank                                          Greece         4,886          3.0% 
                                                                                           
    Aviva Emeklilik ve Hayat                            Turkey             -          0.0% 
                                                                                           
                                                                    --------      -------- 
                                                                                           
                                                                      46,106         27.8% 
                                                                                           
                                                                    --------      -------- 
                                                                                           
    Energy                                                                                 
                                                                                           
    Gazprom                                             Russia        17,159         10.4% 
                                                                                           
    Novatek                                             Russia        11,090          6.7% 
                                                                                           
    Lukoil                                              Russia         8,621          5.2% 
                                                                                           
    Rosneft Oil Company                                 Russia         7,310          4.4% 
                                                                                           
    Tupras                                              Turkey         4,242          2.5% 
                                                                                           
    Short CFD Position                                  Poland        (3,145)        (1.9%)
                                                                                           
                                                                    --------      -------- 
                                                                                           
                                                                      45,277         27.3% 
                                                                                           
                                                                    --------      -------- 
                                                                                           
    Consumer Staples                                                                       
                                                                                           
    Lenta                                               Russia         7,050          4.2% 
                                                                                           
    MHP                                                Ukraine         4,260          2.6% 
                                                                                           
    Coca Cola Icecek                                    Turkey         3,486          2.1% 
                                                                                           
                                                                    --------       --------
                                                                                           
                                                                      14,796          8.9% 
                                                                                           
                                                                    --------      -------- 
                                                                                           
    Telecommunication Services                                                             
                                                                                           
    Mobile Telesystems (MTS)                            Russia         5,824          3.5% 
                                                                                           
    Turkcell                                            Turkey         4,790          2.9% 
                                                                                           
    Sistema                                             Russia         2,901          1.8% 
                                                                                           
                                                                    --------      -------- 
                                                                                           
                                                                      13,515          8.2% 
                                                                                           
                                                                    --------      -------- 
                                                                                           
    Industrials                                                                            
                                                                                           
    Turk Hava Yollari                                   Turkey         6,847          4.2% 
                                                                                           
    Globaltrans                                         Russia         5,989          3.6% 
                                                                                           
                                                                    --------      -------- 
                                                                                           
                                                                      12,836          7.8% 
                                                                                           
                                                                    --------      -------- 
                                                                                           
    Information Technology                                                                 
                                                                                           
    Mail.Ru                                             Russia         4,219          2.6% 
                                                                                           
    Luxoft                                             Ukraine         4,170          2.5% 
                                                                                           
                                                                    --------      -------- 
                                                                                           
                                                                       8,389          5.1% 
                                                                                           
                                                                    --------      -------- 
                                                                                           
    Materials                                                                              
                                                                                           
    Norilsk Nickel                                      Russia         4,408          2.7% 
                                                                                           
    Eldorado Gold                                       Turkey         3,848          2.3% 
                                                                                           
                                                                    --------      -------- 
                                                                                           
                                                                       8,256          5.0% 
                                                                                           
                                                                    --------      -------- 
                                                                                           
    Real Estate                                                                            
                                                                                           
    Long CFD Position - Griffin Premium                 Poland         4,766          2.9% 
                                                                                           
                                                                    --------      -------- 
                                                                                           
                                                                       4,766          2.9% 
                                                                                           
                                                                    --------      -------- 
                                                                                           
    Health Care                                                                            
                                                                                           
    MD Medical Group                                    Russia         4,070          2.5% 
                                                                                           
                                                                    --------      -------- 
                                                                                           
                                                                       4,070          2.5% 
                                                                                           
                                                                    --------      -------- 
                                                                                           
    Total investments - gross exposure                               158,011         95.5% 
                                                                                           
                                                                    --------      -------- 
                                                                                           
    Less: net exposure on CFDs                                        (1,621)        (1.0%)
                                                                                           
                                                                    --------      -------- 
                                                                                           
    Equity investments held at fair value                            156,390         94.5% 
                                                                                           
    Net current assets                                                 9,181          5.5% 
                                                                                           
    Preference shares                                                    (19)         0.0% 
                                                                                           
                                                                    --------      -------- 
                                                                                           
    Net assets                                                       165,552        100.0% 
                                                                                           
                                                                    --------      -------- 
                                                                                           
    Long positions                                                   161,156         97.3% 
                                                                                           
    Short positions                                                    3,145          1.9% 
                                                                                           
                                                                    --------      -------- 
                                                                                           
    Gross positions                                                  164,301         99.2% 
                                                                                           
                                                                    ========      ======== 

    The total number of investments (excluding CFD positions) held at 31 July 2017
    was 25 (31 January 2017: 29). All investments are in equity shares unless
    otherwise stated.

    During the period, the Company entered into CFDs to gain long and short
    exposure on individual securities. At the period end, one short CFD was
    outstanding (31 January 2017: nil) with a fair value profit of US$56,000 (31
    January 2017: US$nil) and an underlying market value of US$3,145,000 (31
    January 2017: US$nil). In addition, one long CFD position was held (31 January
    2017: one) with a net fair value profit of US$24,000 (31 January 2017:
    US$71,000) and an underlying market value of US$4,766,000 (31 January 2017:
    US$2,680,000).

    INCOME STATEMENT
    for the six months ended 31 July 2017

                                 Revenue US$'000                    Capital US$'000                     Total US$'000           
                                                                                                                                
                                Six         Six                    Six         Six                    Six         Six           
                             months      months      Year       months      months      Year       months      months      Year 
                              ended       ended     ended        ended       ended     ended        ended       ended     ended 
                          31.07.17    31.07.16   31.01.17    31.07.17    31.07.16   31.01.17    31.07.17    31.07.16   31.01.17 
                  Notes (unaudited) (unaudited) (audited)  (unaudited) (unaudited) (audited)  (unaudited) (unaudited) (audited) 
                                                                                                                                
                                                                                                                                
    Gains on                     -           -          -       9,364      17,682     40,597       9,364      17,682     40,597 
    investments                                                                                                                 
    held at fair                                                                                                                
    value                                                                                                                       
    through                                                                                                                     
    profit or                                                                                                                   
    loss                                                                                                                        
                                                                                                                                
    Gains on                     -           -          -           6          38        171           6          38        171 
    foreign                                                                                                                     
    exchange                                                                                                                    
                                                                                                                                
    Income from      3       5,987       2,998      3,921           -           -          -       5,987       2,998      3,921 
    investments                                                                                                                 
    held at fair                                                                                                                
    value                                                                                                                       
    through                                                                                                                     
    profit or                                                                                                                   
    loss                                                                                                                        
                                                                                                                                
    (Losses)/        3         (93)         56         47        (347)         32        302        (440)         88        349 
    gains on                                                                                                                    
    contracts                                                                                                                   
    for                                                                                                                         
    difference                                                                                                                  
                                                                                                                                
    Other income     3           3           1         20           -           -          -           3           1         20 
                                                                                                                                
                          --------    --------   --------    --------    --------   --------    --------    --------   -------- 
                                                                                                                                
    Total income             5,897       3,055      3,988       9,023      17,752     41,070      14,920      20,807     45,058 
                                                                                                                                
                          --------    --------   --------    --------    --------   --------    --------    --------   -------- 
                                                                                                                                
    Expenses                                                                                                                    
                                                                                                                                
    Investment       4        (204)       (167)      (337)       (475)       (391)      (785)       (679)       (558)    (1,122)
    management                                                                                                                  
    fees                                                                                                                        
                                                                                                                                
    Other            5        (168)       (201)      (502)        (40)        (60)       (76)       (208)       (261)      (578)
    operating                                                                                                                   
    expenses                                                                                                                    
                                                                                                                                
                          --------    --------   --------    --------    --------   --------    --------    --------   -------- 
                                                                                                                                
    Total                     (372)       (368)      (839)       (515)       (451)      (861)       (887)       (819)    (1,700)
    operating                                                                                                                   
    expenses                                                                                                                    
                                                                                                                                
                          --------    --------   --------    --------    --------   --------    --------    --------   -------- 
                                                                                                                                
    Net profit               5,525       2,687      3,149       8,508      17,301     40,209      14,033      19,988     43,358 
    on ordinary                                                                                                                 
    activities                                                                                                                  
    before                                                                                                                      
    finance                                                                                                                     
    costs and                                                                                                                   
    taxation                                                                                                                    
                                                                                                                                
    Finance                     (9)        (13)       (16)        (21)        (31)       (37)        (30)        (44)       (53)
    costs                                                                                                                       
                                                                                                                                
                          --------    --------   --------    --------    --------   --------    --------    --------   -------- 
                                                                                                                                
    Net profit               5,516       2,674      3,133       8,487      17,270     40,172      14,003      19,944     43,305 
    on ordinary                                                                                                                 
    activities                                                                                                                  
    before                                                                                                                      
    taxation                                                                                                                    
                                                                                                                                
    Taxation                  (662)       (333)      (428)          -           -          -        (662)       (333)      (428)
                                                                                                                                
                          --------    --------   --------    --------    --------   --------    --------    --------   -------- 
                                                                                                                                
    Net profit               4,854       2,341      2,705       8,487      17,270     40,172      13,341      19,611     42,877 
    on ordinary                                                                                                                 
    activities                                                                                                                  
    after                                                                                                                       
    taxation                                                                                                                    
                                                                                                                                
                          --------    --------   --------    --------    --------   --------    --------    --------   -------- 
                                                                                                                                
    Earnings per     7       13.51        6.47       7.50       23.63       47.74     111.31       37.14       54.21     118.81 
    ordinary                                                                                                                    
    share (US$                                                                                                                  
    cents)                                                                                                                      
                                                                                                                                
                          ========    ========   ========    ========    ========   ========    ========    ========   ======== 

    The total column of this statement represents the Company's profit and loss
    Account. The supplementary revenue and capital columns are both prepared under
    guidance published by the Association of Investment Companies (AIC). All items
    in the above statement derive from continuing operations. No operations were
    acquired or discontinued during the period.

    The net profit for the period disclosed above represents the Company's total
    comprehensive income.

    STATEMENT OF CHANGES IN EQUITY
    for the six months ended 31 July 2017

                                               Called up      Share     Capital                                  
                                                   share    premium  redemption    Capital    Revenue            
                                                 capital    account     reserve   reserves    reserve      Total 
                                                 US$'000    US$'000     US$'000    US$'000    US$'000    US$'000 
                                                                                                                 
    For the six months ended 31 July 2017                                                                        
    (unaudited)                                                                                                  
                                                                                                                 
    At 31 January 2017                             4,133     41,684       5,889    114,768    (11,523)   154,951 
                                                                                                                 
    Total comprehensive income:                                                                                  
                                                                                                                 
    Profit for the period                              -          -           -      8,487      4,854     13,341 
                                                                                                                 
    Transactions with owners, recorded                                                                           
    directly to equity:                                                                                          
                                                                                                                 
    Ordinary shares purchased for cancellation        (1)         -           1        (46)         -        (46)
                                                                                                                 
    Treasury shares cancelled                        (40)         -          40          -          -          - 
                                                                                                                 
    Dividend paid1                                     -          -           -          -     (2,694)    (2,694)
                                                                                                                 
                                                --------   --------    --------   --------   --------   -------- 
                                                                                                                 
    At 31 July 2017                                4,092     41,684       5,930    123,209     (9,363)   165,552 
                                                                                                                 
                                                --------   --------    --------   --------   --------   -------- 
                                                                                                                 
    For the six months ended 31 July 2016                                                                        
    (unaudited)                                                                                                  
                                                                                                                 
    At 31 January 2016                             4,162     41,684       5,860     75,565    (14,228)   113,043 
                                                                                                                 
    Total comprehensive income:                                                                                  
                                                                                                                 
    Profit for the period                              -          -           -     17,270      2,341     19,611 
                                                                                                                 
    Transactions with owners, recorded                                                                           
    directly to equity:                                                                                          
                                                                                                                 
    Ordinary shares purchased for cancellation        (9)         -           9       (293)         -       (293)
                                                                                                                 
                                                --------   --------    --------   --------   --------   -------- 
                                                                                                                 
    At 31 July 2016                                4,153     41,684       5,869     92,542    (11,887)   132,361 
                                                                                                                 
                                                --------   --------    --------   --------   --------   -------- 
                                                                                                                 
    For the year ended 31 January 2017                                                                           
    (audited)                                                                                                    
                                                                                                                 
    At 31 January 2016                             4,162     41,684       5,860     75,565    (14,228)   113,043 
                                                                                                                 
    Total comprehensive income:                                                                                  
                                                                                                                 
    Profit for the year                                -          -           -     40,172      2,705     42,877 
                                                                                                                 
    Transactions with owners, recorded                                                                           
    directly to equity:                                                                                          
                                                                                                                 
    Ordinary shares purchased for cancellation       (29)         -          29       (969)         -       (969)
                                                                                                                 
                                                --------   --------    --------   --------   --------   -------- 
                                                                                                                 
    At 31 January 2017                             4,133     41,684       5,889    114,768    (11,523)   154,951 
                                                                                                                 
                                                ========   ========    ========   ========   ========   ======== 

    1  In respect of the year ended 31 January 2017 a final dividend of 7.50 cents
    per share was declared on 28 March 2017 and paid on 28 June 2017.

    The transaction costs incurred on the acquisition and disposal of investments
    are included within the capital reserves and amounted to US$204,000 for the six
    months ended 31 July 2017 (six months ended 31 July 2016: US$68,000; year ended
    31 January 2017: US$248,000).

    BALANCE SHEET
    as at 31 July 2017

                                                            31            31             31 
                                                     July 2017     July 2016   January 2017 
                                           Notes       US$'000       US$'000        US$'000 
                                                   (unaudited)   (unaudited)      (audited) 
                                                                                            
    Fixed assets                                                                            
                                                                                            
    Investments held at fair value                     156,390       137,362        157,134 
    through profit or loss                                                                  
                                                                                            
                                                      --------      --------       -------- 
                                                                                            
    Current assets                                                                          
                                                                                            
    Debtors                                              5,136         1,472            387 
                                                                                            
    Cash and cash equivalents                            5,084             -              1 
                                                                                            
    Collateral pledged in respect of                       557             -              - 
    contracts for difference                                                                
                                                                                            
    Derivative financial assets                             80            56             71 
                                                                                            
                                                      --------      --------       -------- 
                                                                                            
                                                        10,857         1,528            459 
                                                                                            
                                                      --------      --------       -------- 
                                                                                            
    Creditors - amounts falling due                                                         
    within one year                                                                         
                                                                                            
    Bank overdraft                                           -        (5,215)        (1,496)
                                                                                            
    Amounts payable in respect of                         (433)            -              - 
    contracts for difference                                                                
                                                                                            
    Other creditors                                     (1,243)       (1,295)        (1,127)
                                                                                            
                                                      --------      --------       -------- 
                                                                                            
                                                        (1,676)       (6,510)        (2,623)
                                                                                            
                                                      --------      --------       -------- 
                                                                                            
    Net current assets/(liabilities)                     9,181        (4,982)        (2,164)
                                                                                            
                                                      --------      --------       -------- 
                                                                                            
    Total assets less current liabilities              165,571       132,380        154,970 
                                                                                            
                                                      --------      --------       -------- 
                                                                                            
    Creditors - amounts falling due after                                                   
    more than one year                                                                      
                                                                                            
    Preference shares of £1.00 each            8           (19)          (19)           (19)
    (one quarter paid)                                                                      
                                                                                            
                                                      --------      --------       -------- 
                                                                                            
    Net assets                                         165,552       132,361        154,951 
                                                                                            
                                                      --------      --------       -------- 
                                                                                            
    Capital and reserves                                                                    
                                                                                            
    Called up share capital                    9         4,092         4,153          4,133 
                                                                                            
    Share premium account                               41,684        41,684         41,684 
                                                                                            
    Capital redemption reserve                           5,930         5,869          5,889 
                                                                                            
    Capital reserves                                   123,209        92,542        114,768 
                                                                                            
    Revenue reserve                                     (9,363)      (11,887)       (11,523)
                                                                                            
                                                      --------      --------       -------- 
                                                                                            
    Total shareholders' funds                          165,552       132,361        154,951 
                                                                                            
                                                      --------      --------       -------- 
                                                                                            
    Net asset value per ordinary share         7        460.94        366.41         431.28 
    (US$ cents)                                                                             
                                                                                            
                                                      ========      ========       ======== 

    STATEMENT OF CASH FLOWS
    for the six months ended 31 July 2017

                                                     Six months    Six months                  
                                                          ended         ended       Year ended 
                                                   31 July 2017  31 July 2016  31 January 2017 
                                                        US$'000       US$'000          US$'000 
                                                    (unaudited)   (unaudited)        (audited) 
                                                                                               
    Operating activities                                                                       
                                                                                               
    Net profit before taxation                           14,003        19,944           43,305 
                                                                                               
    Add back finance costs                                   30            44               53 
                                                                                               
    Gains on investments and derivatives                 (9,033)      (17,736)         (40,945)
                                                                                               
    Net gains on foreign exchange                            (6)          (38)            (171)
                                                                                               
    Sales of investments                                 65,641        24,426           77,638 
                                                                                               
    Purchases of investments                            (58,742)      (27,257)         (76,329)
                                                                                               
    Realised (losses)/gains on contracts for               (340)          (90)             189 
    difference                                                                                 
                                                                                               
    (Increase)/decrease in debtors                       (1,827)         (552)              21 
                                                                                               
    Increase/(decrease) in other creditors                  611          (223)            (848)
                                                                                               
    Net movement in collateral pledged with                (124)          204              204 
    brokers                                                                                    
                                                                                               
    Tax on investment income                               (870)         (329)            (414)
                                                                                               
                                                       --------      --------         -------- 
                                                                                               
    Net cash generated from/(used in) operating           9,343        (1,607)           2,703 
    activities                                                                                 
                                                                                               
                                                       --------      --------         -------- 
                                                                                               
    Financing activities                                                                       
                                                                                               
    Purchase of ordinary shares                             (46)         (325)          (1,039)
                                                                                               
    Interest paid                                           (30)          (44)             (53)
                                                                                               
    Dividend paid                                        (2,694)            -                - 
                                                                                               
                                                       --------      --------         -------- 
                                                                                               
    Net cash used in financing activities                (2,770)         (369)          (1,092)
                                                                                               
                                                       --------      --------         -------- 
                                                                                               
    Increase/(decrease) in cash and cash                  6,573        (1,976)           1,611 
    equivalents                                                                                
                                                                                               
                                                       --------      --------         -------- 
                                                                                               
    Cash and cash equivalents at the start of the        (1,495)       (3,277)          (3,277)
    period                                                                                     
                                                                                               
    Effect of foreign exchange rate changes                   6            38              171 
                                                                                               
                                                       --------      --------         -------- 
                                                                                               
    Cash and cash equivalents at end of period            5,084        (5,215)          (1,495)
                                                                                               
                                                       --------      --------         -------- 
                                                                                               
    Comprised of:                                                                              
                                                                                               
    Cash at bank                                          5,084             -                1 
                                                                                               
    Bank overdraft                                            -        (5,215)          (1,496)
                                                                                               
                                                       --------      --------         -------- 
                                                                                               
                                                          5,084        (5,215)          (1,495)
                                                                                               
                                                       ========      ========         ======== 

    NOTES TO THE FINANCIAL STATEMENTS
    for the six months ended 31 July 2017

    1. PRINCIPAL ACTIVITY
    The principal activity of the Company is that of an investment trust company
    within the meaning of section 1158 of the Corporation Tax Act 2010.

    2. BASIS OF PREPARATION
    The Company presents its results and positions under FRS 102, 'The Financial
    Reporting Standard applicable in the UK and Republic of Ireland' (FRS 102),
    which forms part of revised Generally Accepted Accounting Practice (New UK
    GAAP) issued by the Financial Reporting Council (FRC) in 2013.

    The condensed set of financial statements has been prepared on a going concern
    basis in accordance with FRS 102 and FRS 104, 'Interim Financial Reporting'
    issued by the FRC in March 2015 and the revised Statement of Recommended
    Practice - 'Financial Statements of Investment Trust Companies and Venture
    Capital Trusts' (SORP) issued by the Association of Investment Companies (AIC)
    in November 2014.

    The Company's cash flow statement reflects the presentation requirements of FRS
    102, which are different to that prepared under FRS 1. In addition, the
    Statement of Cash Flows reconciles to cash and cash equivalents whereas under
    previous UK GAAP the cash flow statement reconciled to cash. Cash and cash
    equivalents are defined in FRS 102 as 'cash in hand and demand deposits, short
    term highly liquid investments that are readily convertible to known amounts of
    cash and that are subject to an insignificant risk of changes in value and bank
    overdraft which forms an integral part of the Company's cash management policy'
    whereas cash is defined in FRS 1 as 'cash in hand and deposits repayable on
    demand with any qualifying institution, less overdrafts from any qualifying
    institution repayable on demand'.

    The accounting policies applied for the condensed set of financial statements
    are as set out in the Company's Annual Report and Financial Statements for the
    year ended 31 January 2017. This reflects the Company's application of FRS 102.

    3. INCOME
     

                                                     Six months    Six months                  
                                                          ended         ended       Year ended 
                                                   31 July 2017  31 July 2016  31 January 2017 
                                                        US$'000       US$'000          US$'000 
                                                    (unaudited)   (unaudited)        (audited) 
                                                                                               
    Investment income:                                                                         
                                                                                               
    UK dividends                                              2             -                - 
                                                                                               
    Overseas dividends                                    5,964         2,998            3,620 
                                                                                               
    Overseas special dividends                                -             -              301 
                                                                                               
    UK special dividends                                     21             -                - 
                                                                                               
                                                       --------      --------         -------- 
                                                                                               
                                                          5,987         2,998            3,921 
                                                                                               
                                                       --------      --------         -------- 
                                                                                               
    Net (loss)/income from contracts for                    (93)           56               47 
    difference                                                                                 
                                                                                               
                                                       --------      --------         -------- 
                                                                                               
                                                          5,894         3,054            3,968 
                                                                                               
                                                       --------      --------         -------- 
                                                                                               
    Other income:                                                                              
                                                                                               
    Deposit interest                                          3             1                1 
                                                                                               
    Other income                                              -             -               19 
                                                                                               
                                                       --------      --------         -------- 
                                                                                               
    Total income                                          5,897         3,055            3,988 
                                                                                               
                                                       ========      ========         ======== 

    Dividends and interest received during the period amounted to US$4,023,000 and
    US$3,000 (six months ended 31 July 2016: US$2,543,000 and US$1,000; year ended
    31 January 2017: US$3,881,000 and US$1,000) respectively.

    4. INVESTMENT MANAGEMENT FEE
     

                                   Six months ended                 Six months ended                    Year ended           
                                     31 July 2017                     31 July 2016                   31 January 2017         
                                     (unaudited)                      (unaudited)                       (audited)            
                                                                                                                             
                             Revenue    Capital      Total    Revenue    Capital      Total    Revenue    Capital      Total 
                             US$'000    US$'000    US$'000    US$'000    US$'000    US$'000    US$'000    US$'000    US$'000 
                                                                                                                             
    Investment management        204        475        679        167        391        558        337        785      1,122 
    fee                                                                                                                      
                                                                                                                             
                            --------   --------   --------   --------   --------   --------   --------   --------   -------- 
                                                                                                                             
    Total                        204        475        679        167        391        558        337        785      1,122 
                                                                                                                             
                            ========   ========   ========   ========   ========   ========   ========   ========   ======== 

    BFM was appointed as the Company's AIFM with effect from 2 July 2014, having
    been authorised as an AIFM by the FCA on 1 May 2014. The management contract is
    terminable by either party on six months' notice. Prior to this, BIM (UK) was
    appointed as Investment Manager and Company Secretary on 1 May 2009. BIM (UK)
    continues to act as the Company's Investment Manager under a delegation
    agreement with BFM. BIM (UK) also acted as the Secretary of the Company
    throughout the year.

    With effect from 1 April 2017 the management fee has been reduced from 1.0% per
    annum of the Company's average daily market capitalisation to 0.80% per annum
    of the Company's average daily net asset value.

    The management fee is allocated 70% to capital reserves and 30% to the revenue
    reserve.

    5. OTHER OPERATING EXPENSES
     

                                                     Six months    Six months                  
                                                          ended         ended       Year ended 
                                                   31 July 2017  31 July 2016  31 January 2017 
                                                        US$'000       US$'000          US$'000 
                                                    (unaudited)   (unaudited)        (audited) 
                                                                                               
    Custody fee1, 2                                           8            33               67 
                                                                                               
    Depositary fees                                           9             7               15 
                                                                                               
    Audit fee2                                               20            20               39 
                                                                                               
    Registrar's fees                                         14            19               29 
                                                                                               
    Directors' fees2                                         64            84              171 
                                                                                               
    Marketing fees                                           23            14               27 
                                                                                               
    Marketing fees written back                              (7)          (39)             (60)
                                                                                               
    Other administration costs                               37            63              214 
                                                                                               
                                                       --------      --------         -------- 
                                                                                               
                                                            168           201              502 
                                                                                               
                                                       --------      --------         -------- 
                                                                                               
    Transaction costs taken to capital                       40            60               76 
                                                                                               
                                                       --------      --------         -------- 
                                                                                               
                                                            208           261              578 
                                                                                               
                                                       ========      ========         ======== 

    1  The custody fees at 31 July 2017 include expenses of US$33,000 in respect of
    the current period and a write-back of US$25,000 in respect of prior periods.
    2  The custody fee, Audit fee and Directors' fees are paid in sterling and are
    therefore subject to exchange rate fluctuations. Directors' fees paid to 31
    July 2017 also include a write-back of US$22,000 in respect of fees from prior
    periods.

    6. DIVIDENDS
    In accordance with FRS 102, Section 32 'Events After the End of the Reporting
    Period', dividends payable on the ordinary shares are not included as a
    liability in the financial statements, as dividends are only recognised when
    they have been paid.

    The Board has not declared an interim dividend (six months ended 31 July 2016:
    nil; year ended 31 January 2017: 7.50 cents).

    7. EARNINGS AND NET ASSET VALUE PER ORDINARY SHARE
     

                                                     Six months    Six months               
                                                          ended         ended    Year ended 
                                                        31 July       31 July    31 January 
                                                           2017          2016          2017 
                                                    (unaudited)   (unaudited)     (audited) 
                                                                                            
    Net revenue profit attributable to ordinary           4,854         2,341         2,705 
    shareholders                                                                            
                                                                                            
    Net capital profit attributable to ordinary           8,487        17,270        40,172 
    shareholders                                                                            
                                                                                            
                                                       --------      --------      -------- 
                                                                                            
    Total profit (US$'000)                               13,341        19,611        42,877 
                                                                                            
                                                       --------      --------      -------- 
                                                                                            
    Equity shareholders' funds (US$'000)                165,552       132,361       154,951 
                                                                                            
                                                       --------      --------      -------- 
                                                                                            
    Earnings per share                                                                      
                                                                                            
    The weighted average number of ordinary shares   35,916,680    36,179,196    36,087,772 
    in issue during each period on which the basic                                          
    return per ordinary share was calculated was:                                           
                                                                                            
                                                       --------      --------      -------- 
                                                                                            
    The actual number of ordinary shares in issue    35,916,028    36,124,128    35,927,828 
    at the end of each period on which the                                                  
    undiluted net asset value was calculated was:                                           
                                                                                            
                                                       --------      --------      -------- 
                                                                                            
    Calculated on weighted average number of                                                
    ordinary shares                                                                         
                                                                                            
    Revenue profit (cents)                                13.51          6.47          7.50 
                                                                                            
    Capital profit (cents)                                23.63         47.74        111.31 
                                                                                            
                                                       --------      --------      -------- 
                                                                                            
    Total (cents)                                         37.14         54.21        118.81 
                                                                                            
                                                       ========      ========      ======== 
                                                                                            
                                                          As at         As at         As at 
                                                        31 July       31 July    31 January 
                                                           2017          2016          2017 
                                                    (unaudited)   (unaudited)     (audited) 
                                                                                            
                                                       --------      --------      -------- 
                                                                                            
    Net asset value per share (cents)                    460.94        366.41        431.28 
                                                                                            
                                                       --------      --------      -------- 
                                                                                            
    Ordinary share price* (cents)                        427.33        323.29        378.06 
                                                                                            
                                                       ========      ========      ======== 

    *     The Company's share price is quoted in sterling and the above represents
    the US dollar equivalent

    8. CREDITORS - AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
     

                                                     Six months    Six months                  
                                                          ended         ended       Year ended 
                                                   31 July 2017  31 July 2016  31 January 2017 
                                                        US$'000       US$'000          US$'000 
                                                    (unaudited)   (unaudited)        (audited) 
                                                                                               
    Allotted, issued and one quarter paid:                   19            19               19 
                                                                                               
                                                       --------      --------         -------- 
                                                                                               
    Shares in issue at 31 July 2017, 50,000                  19            19               19 
    preference shares of £1.00 each                                                            
                                                                                               
                                                       ========      ========         ======== 

    The preference shares confer no right to receive notice of or attend or vote at
    any general meeting of the Company except upon any resolution to vary the
    rights attached to the preference shares. They carry the right to receive a
    fixed dividend of USD0.01 per preference share per annum, payable on demand. On
    a winding up or return of capital, the preference shares confer the right to be
    paid, out of the assets of the Company available for distribution, the capital
    paid up on such shares pari passu with and in proportion to any amounts of
    capital paid to ordinary shareholders, but do not confer any right to
    participate in the surplus assets of the Company. In the period to 31 July 2017
    and the previous year, the preference shareholders waived their rights to any
    preference dividend.

    9. SHARE CAPITAL AND SHARES HELD IN TREASURY
     

                                         Ordinary      Treasury         Total       Nominal 
                                           shares        shares        shares         value 
                                           number        number        number       US$'000 
                                                                                            
    Allotted, called up and fully                                                           
    paid share capital comprised:                                                           
                                                                                            
    Ordinary shares of 10 cents each                                                        
                                                                                            
                                         --------      --------      --------      -------- 
                                                                                            
    At 1 February 2017                 35,927,828     5,400,000    41,327,828         4,133 
                                                                                            
                                         --------      --------      --------      -------- 
                                                                                            
    Shares repurchased/cancelled          (11,800)     (400,000)     (411,800)          (41)
                                                                                            
                                         --------      --------      --------      -------- 
                                                                                            
    At 31 July 2017                    35,916,028     5,000,000    40,916,028         4,092 
                                                                                            
                                         ========      ========      ========      ======== 

    During the period, 11,800 ordinary shares were repurchased and cancelled (31
    July 2016: 92,800; 31 January 2017: 289,100) for a total consideration of
    US$46,000 (31 July 2016: US$293,000; year ended 31 January 2017: US$969,000)
    and 400,000 shares were cancelled from treasury (31 July 2016: nil; 31 January
    2017: nil).

    10. VALUATION OF FINANCIAL INSTRUMENTS
    For the six months ended 31 July 2017 and 31 July 2016 and the year ended 31
    January 2017, the Company had early adopted the amendments to FRS 102 'Fair
    value hierarchy disclosure' effective for annual periods beginning on or after
    1 January 2017. These amendments improve the consistency of fair value
    disclosure for financial instruments with these required by EU adopted IFRS.

    Financial assets and financial liabilities are either carried in the Balance
    Sheet at their fair value (investments) or at an amount which is a reasonable
    approximation of fair value (due from brokers, dividends and interest
    receivable, due to brokers, accruals, cash and cash equivalents and
    overdrafts). Section 11 of FRS 102 requires the Company to classify fair value
    measurements using a fair value hierarchy that reflects the significance of
    inputs used in making the measurements. The valuation techniques used by the
    Company are explained in the accounting policies note on page 49 of the Annual
    Report and Financial Statements for the year ended 31 January 2017.

    Categorisation within the hierarchy has been determined on the basis of the
    lowest level input that is significant to the fair value measurement of the
    relevant asset.

    The fair value hierarchy has the following levels:

    Level 1 - Quoted prices for identical instruments in active markets
    A financial instrument is regarded as quoted in an active market if quoted
    prices are readily and regularly available from an exchange, dealer, broker,
    industry group, pricing service or regulatory agency and those prices represent
    actual and regularly occurring market transactions on an arm's length basis.
    The Company does not adjust the quoted price for these instruments.

    Level 2 - Valuation techniques using observable inputs
    This category includes instruments valued using quoted prices for similar
    instruments in markets that are considered less than active, or other valuation
    techniques where all significant inputs are directly or indirectly observable
    from market data.

    Level 3 - Valuation techniques using significant unobservable inputs
    This category includes all instruments where the valuation technique includes
    inputs not based on observable data and the unobservable inputs could have a
    significant impact on the instrument's valuation.
     

    This category also includes instruments that are valued based on quoted prices
    for similar instruments where significant entity determined adjustments or
    assumptions are required to reflect differences between the instruments and
    instruments for which there is no active market. The Investment Manager
    considers observable data to be that market data that is readily available,
    regularly distributed or updated, reliable and verifiable, not proprietary, and
    provided by independent sources that are actively involved in the relevant
    market.

    The level in the fair value hierarchy within which the fair value measurement
    is categorised in its entirety is determined on the basis of the lowest level
    input that is significant to the fair value measurement. For this purpose, the
    significance of an input is assessed against the fair value measurement in its
    entirety. If a fair value measurement uses observable inputs that require
    significant adjustment based on unobservable inputs, that measurement is a
    Level 3 measurement.

    Assessing the significance of a particular input to the fair value measurement
    in its entirety requires judgement, considering factors specific to the asset
    or liability.

    The table below gives an analysis of the Company's financial instruments
    measured at fair value at the balance sheet date.

    Financial assets/(liabilities)                Level 1    Level 2    Level 3      Total 
     at fair value through profit or              US$'000    US$'000    US$'000    US$'000 
    loss at 31 July 2017                                                                   
                                                                                           
    Assets:                                                                                
                                                                                           
    Equity investments                             156,390          -          -    156,390
                                                                                           
    Derivative instruments - CFD's (gross                -      4,766          -      4,766
    exposure)                                                                              
                                                                                           
    Liabilities:                                                                           
                                                                                           
    Derivative instruments - CFD's (gross                -    (3,145)          -    (3,145)
    exposure)                                                                              
                                                                                           
                                                 --------   --------   --------   -------- 
                                                                                           
    Total                                          156,390      1,621          -    158,011
                                                                                           
                                                 ========   ========   ========   ======== 

       

    Financial assets at fair value through profit or    Level 1    Level 2    Level 3      Total 
    loss at 31 July 2016                                US$'000    US$'000    US$'000    US$'000 
                                                                                                 
    Assets:                                                                                      
                                                                                                 
    Equity investments                                   137,362          -          -    137,362
                                                                                                 
    Derivative instruments - CFD's (gross exposure)            -      2,386          -      2,386
                                                                                                 
                                                       --------   --------   --------   -------- 
                                                                                                 
    Total                                                137,362      2,386          -    139,748
                                                                                                 
                                                       ========   ========   ========   ======== 

       

    Financial assets at fair value through profit or    Level 1    Level 2    Level  3     Total 
    loss at 31 January 2017                             US$'000    US$'000    US$'000    US$'000 
                                                                                                 
    Assets:                                                                                      
                                                                                                 
    Equity investments                                   157,134          -          -    157,134
                                                                                                 
    Derivative instruments - CFD's (gross exposure)            -      2,680          -      2,680
                                                                                                 
                                                       --------   --------   --------   -------- 
                                                                                                 
    Total                                                157,134      2,680          -    159,814
                                                                                                 
                                                       ========   ========   ========   ======== 

    CFDs have been classified as Level 2 investments as their valuation has been
    based on market observable inputs represented by the underlying quoted
    securities to which these contracts expose the Company.

    There were no transfers between levels for financial assets and financial
    liabilities during the period/year recorded at fair value as at 31 July 2017,
    31 July 2016 and 31 January 2017. The Company did not hold any other Level 3
    securities throughout the six month period ended 31 July 2017 (six month period
    ended 31 July 2016: none; year ended 31 January 2017: none).

    11. RELATED PARTY DISCLOSURE
    The Board consists of five non-executive Directors, all of whom are considered
    to be independent by the Board. None of the Directors has a service contract
    with the Company. With effect from 1 February 2017, the Chairman receives an
    annual fee of £38,500 (2016: £38,000), the Chairman of the Audit Committee/
    Senior Independent Director receives an annual fee of £28,500 (2016: £28,250)
    and each of the other Directors receives an annual fee of £24,250 (2016: £
    24,000).

    At the period end and as at the date of this report members of the Board held
    ordinary shares in the Company as set out below:

                                                                28 September        31 July 
                                                                        2017           2017 
                                                                    Ordinary       Ordinary 
                                                                      shares         shares 
                                                                                            
    Rachel Beagles                                                    20,209         20,209 
                                                                                            
    Mark Bridgeman                                                     8,650          8,650 
                                                                                            
    Philippe Delpal                                                   12,000         12,000 
                                                                                            
    Neil England (Chairman)                                          156,633        156,633 
                                                                                            
    Robert Sheppard                                                   10,000         10,000 
                                                                                            
                                                                    ========       ======== 

    12. TRANSACTIONS WITH THE AIFM AND THE INVESTMENT MANAGER
    BlackRock Fund Managers Limited (BFM) provides management and administration
    services to the Company under a contract which is terminable on six months'
    notice. BFM has (with the Company's consent) delegated certain portfolio and
    risk management services, and other ancillary services, to BlackRock Investment
    Management (UK) Limited (BIM (UK)). Further details of the investment
    management contract are disclosed in note 4 on page 51 in the Annual Report and
    Financial Statements 31 January 2017.

    The investment management fee due for the six months ended 31 July 2017
    amounted to US$679,000 (six months ended 31 July 2016: US$558,000; year ended
    31 January 2017: US$1,122,000).

    At 31 July 2017, US$937,000 was outstanding in respect of the investment
    management fees (six months ended 31 July 2016: US$558,000; year ended 31
    January 2017: US$258,000).

    In addition to the above services, BlackRock provided the Company with
    marketing services. The total fees paid or payable for the period ended 31 July
    2017 amounted to US$23,000 excluding VAT (six months ended 31 July 2016:
    US$14,000; year ended 31 January 2017: US$27,000). In addition there was a
    write-back of US$7,000 in respect of previous periods (six month ended 31 July
    2016: US$39,000; year ended 31 January 2017: US$60,000). Marketing fees of
    US$23,000 were outstanding at 31 July 2017 (31 July 2016: US$16,000; 31 January
    2017: US$29,000).

    13. CONTINGENT LIABILITIES
    There were no contingent liabilities at 31 July 2017, 31 July 2016 or 31
    January 2017.

    14. PUBLICATION OF NON STATUTORY ACCOUNTS
    The financial information contained in this half yearly report does not
    constitute statutory accounts as defined in section 435 of the Companies Act
    2006. The financial information for the six months ended 31 July 2017 and 31
    July 2016 has not been audited.

    The information for the year ended 31 January 2017 has been extracted from the
    latest published audited financial statements, which have been filed with the
    Registrar of Companies. The report of the Auditor on those accounts contained
    no qualification or statement under sections 498(2) or (3) of the Companies Act
    2006.

    15. ANNUAL RESULTS
    The Board expects to announce the annual results for the year ending 31 January
    2018 as prepared under new UK GAAP in March 2018. Copies of the results
    announcement can be obtained from the Secretary on 020 7743 3000. The annual
    report should be available by early April 2018, with the Annual General Meeting
    being held in June 2018.

    For further information, please contact:

    Simon White, Managing Director, Investment Trusts, BlackRock Investment
    Management (UK) Limited
    Tel: 020 7743 5284

    Press enquiries:

    Lucy Horne, Lansons Communications - Tel:  020 7294 3689
    E-mail:  lucyh@lansons.com

    28 September 2017

    12 Throgmorton Avenue
    London EC2N 2DL

    END

    The Half Yearly Financial Report will also be available on the BlackRock
    Investment Management website at http://www.blackrock.co.uk/beep.  Neither the
    contents of the Manager's website nor the contents of any website accessible
    from hyperlinks on the Manager's website (or any other website) is incorporated
    into, or forms part of, this announcement.