Change In Capital: : Grant Of Share Options: : Disclosure In Compliance With Rule 704(27) - Grant Of Options

The Board of Directors of Raffles Education Corporation Limited ("the Company") wishes to announce the grant of options pursuant to the Raffles Education Corporation Employees' Share Option Scheme (Year 2011). The details of the grant of options are as follows:

(a) Date of grant: 2 September 2011

(b) Exercise price of options granted: S$0.462 per share

The exercise price is equal to the average of the last dealt prices of the Company's shares for the 5 consecutive market days immediately preceding the date of grant, rounded up to the nearest whole cent.

(c) Number of options granted: 300,000

(d) Market price of securities on the date of grant: S$0.49

(e) Number of options granted to directors and controlling shareholders (and their associates), if any: A total of 300,000 options (i.e. 75,000 options each) were granted to 4 Non-Executive Directors

(f) Validity period of the options: 5 years from the date of grant. Exercise period will be from 2 September 2012 to 1 September 2016.