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1 ABN Level 27, 35 Collins Street Melbourne VIC 3000 Phone Fax Web Monday, 19 August 2013 Contango MicroCap Limited (ASX Code: CTN) ASX Media Release FY13 Results Commentary FY13 HIGHLIGHTS NB Refer Notes & Disclaimer on page 5 Contango MicroCap Limited (ASX: CTN) has achieved several milestones during the Financial Year ended 30 June In a trying period for small and microcap stocks, the Company delivered a share price total return to shareholders of o This confirms the positive sentiment for CTN and the success of initiatives enacted by the Board to raise the profile of CTN and promote the desirability of owning CTN shares Increased total dividends of 8.5 cents per share were paid during FY13. o Up from 7.8 cents per share paid in FY12 o Representing a 9 increase in the dividend from FY12 The investment manager maintains a positive outlook for the microcap sector through FY14 - validated by the pre-tax NTA growing by 9.8 in the month of July The CTN share price total return of outperformed both the ASX Small Ordinaries Accumulation and ASX Emerging Companies Accumulation Indices over all time periods as shown below. CTN Share Price (Inc. Div) ASX Small Ords Accum ASX Emerging Companies Accum 30/06/2013 6m Year Yr (pa) Yr (pa) Yr (pa) Yr (pa) o This outperformance demonstrates the skill in asset allocation and stock selection of our portfolio manager Contango Asset Management Limited (CAML). In a difficult and volatile market, the after-tax NTA of CTN declined 4.7 (recognising dividends paid) o This outperformed the FY13 market movements of the: o Small Ordinaries Index -5.3 o Emerging Companies Index o Small Resources Index (Accumulation Indices. 12m to 30 June 2013)

2 The Company s dividend policy - to pay 6pa of the July 1 NTA 2 continues. 1 for 3 Share options scheme launched in February 2013 (trading as CTNO). o Proving additional value for shareholders Successfully completed 100 takeover of CCQ, allowing for potential in future years to: o Unlock synergies and generate additional revenue through its ownership of CAML o Access both franking credits and possibly unrealised tax losses in CCQ A record number of Shareholders at June 30 of 4,416. o Up 4.3 from 4,235 the previous year and up from 3,936 in June 11. CTN maintained ratings from 3 Independent Research Houses during FY13. o Independent Investment Research (IIR) o Zenith Investment Partners o Morningstar CTN has consolidated its position as a premier Listed Investment Company that provides shareholders and investors with diversified exposure to Australian microcap companies, together with reliable income streams from its clearly defined dividend policy. Success in the narrowing of the share price discount to NTA. o Down from 17 one year ago to 6.8 at June 30 o Continuation of confidence in CTN and recognition of value in the company Continuation of market outperformance by CAML 3. o The underlying investment portfolio has generated a return of 15.5 pa since inception in April 2004 to 30 June 2013 o In July 2013 the investment portfolio delivered a gross return of LARGEST SHAREHOLDINGS AT 30 JUNE largest stock holdings and their weights within the CTN Investment Portfolio Code Stock Wgt Code Stock Wgt AUB Austbrokers Holdings Ltd 3.8 AHE Automotive Holdings Group Ltd 2.3 SGH Slater & Gordon Ltd 3.7 WEB Webjet Ltd 2.2 MTU M2 Telecom Group Ltd 3.5 TOX Tox Free Solutions Ltd 2.0 VRL Village Roadshow Ltd 3.1 CTD Corporate Travel Mgmt Ltd 2.0 MMS McMillan Shakespeare Ltd 3.0 BTT BT Investment Mgmt Ltd 2.0 GEM G8 Education Ltd 2.9 SFW SFG Australia Ltd 1.9 FXL FlexiGroup Ltd 2.6 NHF NIB Holdings Ltd 1.7 MYX Mayne Pharma Group Ltd 2.5 CWP Cedar Woods Properties Ltd 1.6 PRT Prime Media Group Ltd 2.5 CCV Cash Converters International 1.6 MYX iinet Limited 2.3 NHF NIB Holdings Limited 1.6 The CTN Investment Portfolio held 64 securities at 30 June In addition to this CTN owns of fund manager Contango Asset Management Limited representing 3.3 of CTN s Net Tangible Assets. CTN possesses a strong balance sheet and is well positioned to participate in the benefits of microcap company growth.

3 OPERATING PERFORMANCE Contango MicroCap Limited (ASX: CTN) today announced an operating loss before tax for the year to 30 June 2013 of $7.9 million (FY12: -$20.8m). During FY13 Contango Asset Management Limited (CAML) - the portfolio manager of CTN - negotiated a difficult period for microcap stocks through careful stock selection and sector rotation, increasing the exposure to micro Industrial stocks, while reducing the exposure to Micro Resource positions. Losses on investments contributed $11.8m (FY12: -$35.4m) to this result while dividend and interest income provided $4.8m (FY12: $7.8m). The Company paid dividends during FY13 amounting to 8.5cps, representing over $12.7m being paid to shareholders. This dividend amount was a 9 (0.8cps) increase on the dividends paid during FY12 (which amounted to 7.8cps / $11.6m). At 30 June 2013, the Net Assets of the Company totalled $158.1m and the company carried no debt. CTN is a well capitalised company with a strong balance sheet that will enable the portfolio manager to participate in the growth of the microcap sector. Long term portfolio outperformance of the investment manager demonstrates their skill and experience to manage an Australian microcap portfolio. DECLARATION OF FINAL FY13 DIVIDEND On 12 August 2013 the Directors of Contango MicroCap Limited declared the Final Dividend for the year ended 30 June Key details being: Dividend of 4.0 cents per share The dividend will be 50 franked Shares will trade ex-dividend on Monday 26 August 2013 ( Ex-date ) Those shareholders recorded in the register at the close of business on Friday 30 August 2013 will be entitled to receive the dividend ( Record Date ) The Company s Dividend Reinvestment Plan (DRP) will continue to operate for this dividend The payment of dividend and issue of shares under the DRP will occur on Tuesday 24 September 2013 ( Payment Date ) This dividend contains no Foreign Conduit Income From 1 January 2014 CTN dividends only be paid via electronic payment into nominated bank account Since declaring its first dividend in December 2004, including this dividend declaration, CTN will have paid a total of 71 cents per share in dividends to shareholders, amounting to a total payout of over $75.7m. Under CTN s DRP, shares are issued at a 3 discount to effective share price at Record Date. Shareholders should give strong consideration to the DRP. Detailed information and rules regarding the DRP can be found on the Dividends 4 Page on the Company web site. Please Note: The Company also advises that this will be the last time where dividends can be paid via cheque to shareholders. FROM 1 JANUARY 2014 DIVIDEND PAYMENTS WILL BE VIA BANK DEPOSIT ONLY. Shareholders should ensure current TFN and Bank Account details are recorded with the company share registry (Computershare) 5.

4 CORPORATE HIGHLIGHTS SUCCESSFUL COMPLETION OF TAKEOVER OF CCQ The takeover bid for CCQ was successful, with CTN acquiring 100 of CCQ through its ownership of successful fund manager Contango Asset Management Limited (CAML), CTN is able to unlock synergies with CAML and generate additional revenue from its funds management business. In addition this allows for potential in future years to access franking credits and unrealised tax losses in CCQ. BONUS OPTIONS On the 14th of February 2013 CTN announced a proposed free Bonus Option issue under which one CTN option to be issued to shareholders for every three CTN shares (1 for 3) held at the relevant record date. The Company seeks to raise funds via Options for the purpose of: 1. Providing the investment manager with funds to invest in highly prospective companies, including IPOs and other microcap companies issuing capital. 2. Satisfying investor demand for the Company's shares, and 3. Lowering the company's management expense ratio. Allotment of Options occurred on the 7th of March and commenced trading on ASX on the 8th of March, under the code CTNO. The Options have an exercise price of $1.20 and were issued at no cost to shareholders. Options have an expiry date of 28 February 2014 and can be exercised or sold on the sharemarket at any time up until this date. The Company reminds shareholders who received the options that they should recognise the value of their options when calculating the performance of their total CTN investment. At the close of trade on the 15 th of August the CTN Options (CTNO) were 1.6 cents, and at 30 June 2013 traded at 0.5 cents. The value of CTNO Options is not recorded in the CTN NTA statement provided each month. The CTN Board has chosen to issue options rather than offer a Rights Issue so as to reduce the impact on shareholders through the immediacy of funding requirements. DESIRABILITY OF CTN SHARES IN FY13 The discount on share price to after-tax NTA ended FY13 at 6.8, being as low as 2.3 at the end of February. This is a continuation of CTN s success in having the market recognise the value in holding CTN shares. SHARE PRICE DISCOUNT TO NTA PRE TAX POST TAX 30-Jun Jun Jun Jun Jun Jun The ability to narrow the discount provides an additional source of returns for shareholders

5 GROWTH IN SHAREHOLDER BASE CTN continues to grow its shareholder base. On the last trading day of FY13 CTN had its highest ever number of shareholders being 4,416. New shareholders were attracted through the promotion and marketing campaigns undertaken by CTN. The growth in shareholders in a falling sharemarket indicates that new shareholders have purchased shares with a longer term investment horizon Total 1,467 1,937 2,670 3,255 3,210 3,459 3,936 4,234 4,416 CTN s OVERALL SUCCESS IN FY13 CAN BE ATTRIBUTED TO The market understanding the value of having a portfolio asset allocation in the high growth microcap sector Asset allocation skills and stock picking abilities of the portfolio s investment manager (CAML) Recognition of the long term performance of the Company Active promotional and distribution activities, particularly towards SMSF Trustees and Financial Advisers An effective Dividend Policy making CTN a desirable investment for shareholders Increased size and structure of the shareholder base, and Increased profile of the Company For further information please call Boyd Peters on (03) NOTES 1 Total return referenced is share price plus dividends paid in the 2012/13 Financial Year (said paid dividends amounting to 8.5 cents per share in the period). Past performance is no indicator of future performance or returns. Total return does not include the additional value created for shareholders or through the provision of additional shares via DRP and Options issued. 2 Dividend Policy announcement of 16 April 2010 annual dividends amounting to a minimum 6pa of each year s July 1 NTA value - paid twice annually. Reference to any future potential dividend or franking which may be attached are not to be read as either a Formal Declaration or announcement as to when Formal Declaration will be made. You should only refer to the Official Declaration of Dividend for confirmed details. 3 Portfolio Performances identified are of the underlying securities held in the CTN portfolio and before the impact of any fees, taxes and expenses. Past performance is not necessarily indicative of future performance. Other measures of performance to consider include both the Pre and Post Tax NTA Value of the investment portfolio and share price performance. 4 DRP information can be found at 5 Access to Computershare via the CTN web site DISCLAIMER Reference to investment performance or market outlook and positioning does not contain investment recommendations nor provide investment advice. There may be errors or omissions in the compilation of information for this document. Nothing in this document should over-ride the information provided in the Audited Financial Statements and 4E. Neither CTN nor its related entities, directors or officers guarantees the performance of, or the repayment of capital or income invested within CTN or any associated product or Fund. CTN nor Contango Asset Management Limited, ABN , AFSL No who is the Investment Manager of CTN are authorised or licensed to provide financial advice. We strongly encourage you to obtain detailed professional advice and to read any relevant offer document in full before making any investment decision.

6 ABOUT CONTANGO MICROCAP LIMITED CTN is a Listed Investment Company (LIC) whose objectives are to outperform the S&P/ASX All Ordinaries Accumulation Index and provide regular dividends to its shareholders. Since listing in 2004 CTN has declared 71 cents per share in dividends, amounting to over $75.7m. Investments Held: CTN holds a diversified portfolio of Australian microcap companies listed on the ASX, each with a market capitalization generally between $10m & $350m at the time of acquisition. There are around 1,000 companies in this universe with a total Market Cap. of around $70 billion. Investment Style: CTN is Style Neutral - the portfolio is managed on the basis of sensitivity to economic & market factors as well as stock specific considerations. At some stages of the cycle there is a Growth bias while in periods of economic weakness the portfolio typically has a bias to Value/defensive stocks. ABOUT CONTANGO ASSET MANAGEMENT LIMITED Through the full takeover of CCQ, CTN now owns of the investment funds portfolio manager, Contango Asset Management Limited (CAML). CAML was incorporated in December 1998 by a small group of Melbourne based investment professionals. CAML specialises in the management of Australian Equities portfolios for institutional clients. By way of information: CAML has completed another successful investment performance year. The newest fund, MidCap Income Fund, continued to prove CAML s ability to launch funds when they are a good asset allocation call. Since inception on 31 July 2012 the fund generated a return of 32.3 to 30 June (Gross performance exclusive of fees, taxes and fund charges. Past performance is no guarantee of future returns.) CAML s business cycle approach, which focuses on the structure of the growth patterns of the economy as it impacts on earnings and valuations for industries and companies, continues to add value. Bottom up fundamental valuation and modelling has been strengthened by the addition of Shawn Burns as Head of Stock Research. The key to the strong portfolio performance in FY13 last year has been negotiating the divergence in performance between industrials and resources. This has given industrial only fund managers a perceived higher profile. In Australia, the small and microcap indices are heavily biased to resources. Despite CAML s strong outperformance this factor has led to significantly lower returns than industrial only funds. Due to the continuing additional volatility of the world economy, CAML s ability to forecast and explain the macro influences on stock prices places them well as one of the few managers that have a capability in this field. These skills will continue to be very valuable in FY14 as market volatility is likely to increase as the discussion over the Fed s removal of QE stimulus programs are digested. Refer Notes and Disclaimer on previous page