SOURCE: St James Capital Holdings, Inc.

May 22, 2005 14:38 ET

St James Capital Holdings, Inc. Makes Further Acquisition

Company Acquires Control of Hanover Capital Group plc

NEW YORK, NY -- (MARKET WIRE) -- May 22, 2005 -- St James Capital Holdings, Inc. (OTC: SJCH) ("St James") announced today that it has acquired shareholder control of UK-based Hanover Capital Group plc ("Hanover Group") of Companies in the United Kingdom.

St James owned through one of its subsidiary companies an amount of 10,666,666 Ordinary Shares of 1p each in Hanover Group, representing 5.49% of Hanover Group's outstanding shares. St James has now acquired a further amount of 119,208,683 Ordinary Shares of 1p each in Hanover Group and at a price of 3p each. St James now controls an amount of 129,875,349 Ordinary Shares of 1p each in Hanover Group, representing 66.84% of the Hanover Group's outstanding shares. The cost to St James to date and in respect of the acquisition of the Hanover Group Ordinary Shares is in the amount of £3,896,260 (US$7,402,895).

St James intends to continue to acquire Hanover Group Ordinary Shares until such time as the Hanover Group becomes a wholly owned subsidiary of the company. To this end, St James will now approach shareholders representing a further 18% of the Hanover Group. Once St James controls in excess of 90% of the Hanover Group, it will be in a position to make an unconditional offer to the Hanover Group minority shareholders. The total cost to St James in respect of the acquisition of the Hanover Group is expected to be in the amount of US$11 million.

The Hanover Group owns a number of passive investments, including a stake of approximately 10% of OTC BB quoted, Great West Gold, Inc. (Symbol : GWGO), and Hanover Group has substantial tax losses. The Hanover Group was at one time quoted on the Alternative Investment Market ("AIM") of the London Stock Exchange, but at this time is an unquoted Public Company. The President of St James, Stephen Lumb, is the Chairman of the Hanover Group.

Stephen Lumb, the President of St James Capital Holdings, Inc., said today that he would continue St James' very aggressive growth strategy in order for St James to reach critical mass in order for the Company to move to the next level of its business strategy. Stephen Lumb confirmed that the acquisition of these shares of the Hanover Group was settled through the issue of restricted shares of St James' Common Stock.

St James Capital Holdings Inc. controls the UK-based St James Resource Management Limited Group ("Resource Group") of Companies primarily in the Structured and Corporate Finance arenas advising clients on capital raising, restructuring and admission to equity markets in the United States. Resource Group invests on a short-term basis in these companies as well as providing short-term capital prior to their flotation on USA equity markets. Resource Group places lines of stock in these client companies for cash, post their admission to USA equity markets. Resource Group also holds a portfolio of development Real Estate in the United States. Resource Group has a net asset value of US$90 million and posted earnings in excess of US$4 million in the last financial year. Resource Group has in excess of twenty new clients which are in the process of seeking admission to the USA equity markets at this time.

Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties beyond the Company's control, including but not limited to economic, competitive and other factors affecting the Company's operations, management team effectiveness, expansion strategies, available financing, market prices and recovery costs, government regulations involving the Company, facts and events not known at the time of this release, and other factors discussed in the Company's filings with the Securities and Exchange Commission. These statements are not guarantees of future performance and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements.

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