Ottoman Fund : Interim results for the six months ended 29 February 2016. Restoration of trading on AIM

THE OTTOMAN FUND LIMITED (the "Company") Interim results for the six months ended 29 February 2016 Restoration of trading on AIM

The Company is pleased to announce its interim results for the six months ended 29 February 2 0 1 6 , a f u l l c o p y o f w h i c h w i l l s h o r t l y b e a va i l a b l e o n t h e C o m p a n y ' s website: www.theottomanfund.com.

Following the publication of the interim results the Company also announces that trading in the Company's securities on AIM is expected to resume at 7.30 a.m. on 17 November 2016. Additionally, the Company having disposed of all, or substantially all, of its assets within the meaning of Rule 15 of the AIM Rules, will have twelve months from today's date to implement its current investing policy in accordance with Rule 15. If this is not fulfilled, the Company will be suspended pursuant to AIM Rule 40.

This announcement contains inside information.

Enquiries:

N+1 Singer James Maxwell / Gillian Martin	0207 496 3000
Vistra Fund Services Limited Company Secretary	01534 504 700

Chairman's Statement

Dear Shareholders,

This is our unaudited report for the six month period ended 29 February 2016. We have delayed its release because of uncertainty in valuing assets and legal claims as well as the uncertainty surrounding tax and other governmental investigations that were targeted at our Turkish subsidiary companies. We have no insight into why these companies were targeted, but it now appears that the investigations have concluded with no finding of any malfeasance or liability. We have made progress on other fronts as well.

As at 29 February 2016, our net assets were £5.2 million or 3.9 pence per share. The £5.2 million figure carries the Company's Mandalina affiliate and claims against the Company's former Chief Financial Officer at nil. The nil carrying value for Mandalina and the money that was unlawfully taken reflects difficulties in determining a proper accounting value for both assets. It

does not imply any view on the part of the board that these assets are worthless. Following period end, £2.7 million of the £5.2 million (or two pence per share of the 3.9 pence per share) was returned to shareholders through a return of capital.

Although we are not yet in a position to make a further distribution or liquidate our Turkish subsidiary companies, we have, especially recently, accomplished a lot and are hopeful that some issues will soon be closed off. Loans previously made by the Turkish subsidiaries to the Company have now been cancelled. We are also in the late stages of obtaining a controlling stake in the Mandalina company. We have resolved some of the claims against subsidiary companies, which is necessary ahead of formally winding them up. Upon the advice of our local accountants and lawyers, we are also taking advantage of a tax amnesty in Turkey to try to avoid a future tax surprise.

Earlier last month Sinan Kalpakcioglu, the Ottoman Fund's former CFO was indicted for aggravated theft in connection with his criminal activities while serving as the Company's CFO in Turkey. The indictment followed close to a year of hard work by our Turkish criminal lawyer, Dr. Kaan Karcılıoğlu. If convicted, Kalpakcioglu faces up to 35 years imprisonment and fines. On 19 October the Istanbul 8th Criminal Court of First Instance accepted the indictment and set 7 December 2016 as the date for the first hearing. I will be present in the court on that date and will be prepared to give evidence showing how Kalpakcioglu carried out his unlawful scheme. Under Turkish law, the defendant's remorse as shown by his subsequent conduct may affect the criminal sanction. We are therefore hopeful that Kalpakcioglu will return money he unlawfully took while the Company's CFO. We are also pursuing other avenues in Turkey in an effort to recover money unlawfully taken from the Company's Turkish subsidiaries and cash in Mandalina. These amounts are considerable. Valued at the high end, gross of possible taxes and expenses, in excess of $2.4 million (the amount Kalpakcioglu removed plus the cash held by Mandalina) remains in Turkey. The board is firmly of the view that the Company's efforts in trying to recover this money well outweigh the Company's foreseeable fixed costs and incremental professional expenses.

Turkey has had a difficult time as of late with the abortive coup and the subsequent large scale disruption of Turkish law enforcement and judiciary. The financial markets have downgraded Turkish sovereign debt and depreciated the Turkish Lira as against the US dollar. In the face of these challenges we are deeply grateful to Turkish law enforcement for pursing the Kalpakcioglu matter and thereby showing the international markets that he will be answerable in court for his misconduct.

The investment perspective on Turkey in late 2016 is very different from how investors looked at Turkey ten years ago when Ottoman was floated. The market then perhaps did not properly weigh the various risks in exporting capital from London to finance complex development projects in Turkey. The Ottoman board, however, recognized these issues, which is why we did not proceed with development deals for the Riva, Bodrum and Kazikli assets and monetized the Alanya assets as quickly as practicable. By doing so we have returned over £85 million of Company capital to shareholders since 2010. We will endeavor to return additional capital as soon as practicable.

Very truly yours,

John D. Chapman Chairman

Independent Review Report Introduction

We have been engaged by The Ottoman Fund Limited (referred to as the "Company" and together with its subsidiaries as "the Group") to review the unaudited condensed interim consolidated financial statements in the half yearly report of the Group for the six months to 29 February 2016 ("interim financial information"), which comprise the unaudited condensed consolidated statement of comprehensive income, unaudited condensed consolidated statement of financial position, unaudited condensed consolidated statement of changes in equity, unaudited condensed consolidated cash flow statement and the related explanatory notes to the unaudited condensed interim consolidated financial statements.

We have read the other information contained in the half yearly report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the unaudited condensed interim consolidated financial statements.

Directors' responsibilities

The half yearly report is the responsibility of, and has been approved, by the directors. The directors are responsible for preparing the half yearly report in accordance with the letter of engagement, the London Stock Exchange's Rules for AIM Listed companies and other applicable legislation and regulations.

As disclosed in note 1 of the interim financial information, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS"). The unaudited condensed interim consolidated financial statements included in the half yearly report have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union ("IAS 34").

Our responsibility

Our responsibility is to express to the Group a conclusion on the unaudited condensed interim consolidated financial statements in the half yearly report based on our review.

Our report has been prepared in accordance with the terms of our engagement and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, ''Review of Interim Financial Information Performed by the Independent Auditor of the Entity'', issued by the Auditing Practices Board for use in the United Kingdom and Ireland. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the unaudited condensed interim consolidated financial statements in the half yearly report for the six months to 29 February 2016 are not prepared, in all material respects, in accordance with IAS 34 and other applicable legislation and regulations.

Baker Tilly Channel Islands Limited

Chartered Accountants St Helier, Jersey

16 November 2016