CAPRICORN SOCIETY LIMITED

Neither Capricorn nor its officers, employees, agents and advisers guarantee that anyparticular performance of the Shares, including those offered under this InvestmentStatement, or any other specific objective will be achieved.Risks specific to the SharesThere are specific risks associated with the rights attached to the Shares. The key ones are:(a)Amendment of Authorised Purchaser Agreement Terms and Conditions and theOngoing Provision of Credit. The terms and conditions on which credit and theAccount are provided to Members allow Capricorn to alter or withdraw any creditfacility provided to a Member without notice. Capricorn may also make other non-creditrelated changes to the Account on no less than 30 days’ written notice to a Member.If Capricorn exercises such rights there is a risk that the credit provided by Capricornor the Account in general would no longer meet the needs of a Member.Further, as ongoing compliance with the terms and conditions of the Account is part ofthe membership criteria for Capricorn, there is a risk that any such changes to theAccount may affect the ability of a Member to comply with the membership criteria onan ongoing basis.(b)Ongoing Satisfaction of the Membership Criteria and Compulsory Sale ofShares. Capricorn's Constitution requires that Members of Capricorn must meet themembership criteria on an on-going basis.There is a risk that Members may at some point in the future no longer meet themembership criteria and therefore are ineligible to remain a Member. This may be dueto a change in the Member’s circumstances or due to a change made by Capricornwhich affects the Member’s ability to meet the membership criteria (which may occur inthe circumstances referred to in the preceding risk).In such circumstances Capricorn may take steps that result in the removal of a personas a Member of Capricorn including through the compulsory sale of the Member’sShares.If a Member's Shares are compulsorily sold, the Member may not receive the fullamount of the issue price of the Shares.Further, the Member would no longer be entitled to the rights and privileges attachedto being a Member of Capricorn (information about which is set out in the “Whatreturns will I get?” section above), which may have additional adverse financialconsequences for the Member.(c)Dividends. There is no guarantee that dividends will be paid on Shares in the futureas this is a matter that depends on the financial performance of Capricorn and thediscretion of the directors. The ability of Capricorn to pay dividends in the future isdependent upon many factors, including:(i) the ability of Capricorn to generate profits;(ii) the overall financial health of Capricorn; and(iii) the prevailing cash requirements of Capricorn at the relevant time.Generally, there will be factors that affect the ability of Capricorn to pay dividends, andthe timing of paying any dividends, that will be outside the control of Capricorn and itsdirectors.Capricorn Investment Statement – 6 December 201210