Nanoco Technologies

Placing Raises £15 million

Nanoco Group plc (AIM: NANO) announces the completion of the placing announced yesterday afternoon (the "Placing"). A total of 16,700,000 new ordinary shares in the capital of Nanoco (the "Placing Shares") have been placed with institutions at a price of 89 pence per Placing Share (the "Placing Price"). Based on the Placing Price, the gross proceeds of the Placing will be approximately £15 million.

The Placing Shares will, when issued, be credited as fully paid and will rank pari passu in all respects with the existing ordinary shares of the Company ("Ordinary Shares"), including the right to receive all dividends and other distributions declared, made or paid on or in respect of such shares after the date of issue of the Placing Shares.

The Company will apply for admission of the Placing Shares to trading on the AIM market of the London Stock Exchange ("Admission").  It is expected that Admission will take place and that trading in the Placing Shares will commence on or about 3 February 2011.

BofA Merrill Lynch is acting as sole lead manager and bookrunner to the Placing. The Placing is conditional upon, inter alia, Admission becoming effective. In connection with the issue of the Placing Shares and Admission, the Company has agreed subject to certain exceptions (including the Company granting or facilitating the exercise of options or share issues pursuant to the terms of the existing employee share schemes of the Company disclosed in publicly available information relating to the Company published prior to 26 January 2011 or where the consent of BofA Merrill Lynch has been obtained) not to issue new ordinary shares for a period of 180 days from the date of closing of the Placing.