Kurdistan Investment Company - Results for October 2010

The Company’s Net Asset Value climbed a mighty 8.2 % during October as both Kurdistan and world equity markets showed strength. The performance stands well compared to an increase of 4.6 % in MSCI Frontier Market and 4.2 % in MSCI World Market, all figures stated in SEK.

All but one of our holdings posted positive figures in October. The largest contributor to the portfolio performance where recorded from Shamaran Petroleum, up 38 %, on announcement of drilling operations to be started in the Atrush block, and that Marathon Oil bought 20 % of the working interest in the block. With an estimated potential of between two and four billion barrels, and sited close to Gulf Keystone's huge discovery at Shaikan-1, the field could be one of the larger in Kurdistan. Further, Heritage Oil rose double-digit in October, supported by a settled tax dispute and renewed speculation of a takeover of the company.

During the month we increased our holdings in Heritage Oil while we kept our position in Shamaran which at the beginning of the month already constituted our largest holding. Our holdings in Sterling Energy was substantially reduced.

The management group conducted a week-long investment trip to Iraqi Kurdistan in mid October. Meetings with companies and government advisors gave insights needed in a region lacking easily available data. Investment opportunities where investigated, scrutinized on spot, with special focus on the real estate sector. We also met and agreed to cooperate actively with Erbil Stock Exchange, which is expected to open up in the later half of 2011.

The latest share issuance was succeesfully fully subscribed, thereby doubling up of the share capital. The new capital increase the financial strength and a step towards a future listing of the Company.

For further information, please contact Johannes Liss
Swedish Representative Office
Idrottsgatan 4
222 29 Lund,
Sweden
Phone: 46 46 12 26 17
Phone: 46 73 65 22 824
Web www.kurdic.se
E-mail info@godvigcapital.com
johannes.liss@godvigcapital.com

About Kurdistan Investment Company: Kurdistan Investment Company is the world’s only investment company available with a focus on the Kurdish region.

The investment objective of the Company is to achieve the highest possible long-term capital growth, with lowest possible risk, to our investors.

Kurdistan Investment Company tries to capitalize on the strong investment potential seen in mainly Iraqi Kurdistan but also as investment opportunities arise, other areas in Kurdistan. The Company primarily invests into large-cap Kurdish and Kurdish-dependant companies, private equity as well as listed companies on the stock exchanges in Iraq, its surrounding countries and internationally. The stock exchange in Iraqi Kurdistan is expected to become operational in 2011. Other securities that the Company might invest into are regional bonds, Pre-IPOs and commodities.

About Godvig Capital: Godvig Capital is an independent fund manager. Together with our advisory and analytical operations we form the Godvig Group. We manage funds that tend to be unique in their characteristics, and that have a tendency to be at the frontier of the investment horizon – regionally as well as intellectually. Further, we advise on additional investment mandates. Our success is dependent on our investors' success.

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About Us

Godvig Capital is an independent fund manager. Together with our advisory and analytical operations we form the Godvig Group. We manage funds that tend to be unique in their characteristics, and that have a tendency to be at the frontier of the investment horizon – regionally as well as intellectually. Further, we advise on additional investment mandates. Our success is dependent on our investors' success. Our goal is to maximise investment performance, based on a risk/reward perspective. This of course puts high demands on our employees and owners - a challenge we are willing to accept. With an Open Mind, Fair Play, and Performance Focus we do our very best to meet your high expectations.

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