THE EASTERN EUROPEAN TRUST PLC - Portfolio Update

THE EASTERN EUROPEAN TRUST PLC

All information is at 31 May 2013 and unaudited.

Performance at month end with net income reinvested
                               One   Three    One  Three    *Since
                             Month  Months   Year  Years  30.04.09
Sterling:
Share price**                 3.7%   -1.7%  24.5%   1.6%     81.7%
Net asset value (undiluted)   0.7%   -5.6%  25.5%   3.6%     81.2%
Net asset value (diluted)     0.9%   -4.5%  23.6%   2.0%     78.4%
MSCI EM Europe 10/40(TR)      1.1%   -3.1%  29.2%  12.1%     80.0%

US Dollars:
Net asset value (undiluted)  -1.9%   -5.7%  23.6%   8.1%     85.4%
Net asset value (diluted)    -1.7%   -4.6%  21.7%   6.4%     82.5%
MSCI EM Europe 10/40(TR)     -1.5%   -3.2%  27.3%  16.9%     84.2%

Sources: BlackRock and Standard & Poor's Micropal

* BlackRock took over the investment management of the Company with effect from
1 May 2009.

At month end
Net asset value - capital only:           294.88p
Net asset value*** - cum income:          299.66p
Net asset value - cum income (diluted for
subscription shares):                     294.92p
Share price:                              266.50p
2012 Subscription share price:              3.00p
Total assets^:                            £120.8m
Discount (share price to cum income NAV):   11.1%
Gross market exposure^^^:                  108.8%
Net yield:                                   1.6%
Ordinary shares in issue^^:            39,177,998
2012 Subscription shares:               8,468,457

***Includes year to date net revenue equal to 4.78p per share.
^Total assets include current year revenue.
^^Excluding 5,800,000 shares held in treasury.
^^^ Long positions plus short positions as a percentage of net asset value.

Benchmark
Sector Analysis     Net Assets(%)*    Country Analysis   Net Assets(%)*
Financials                  35.9      Russia             63.1
Energy                      30.0      Turkey             20.1
Telecommunications          11.1      Poland              8.4
Consumer Staples             6.7      Hungary             8.2
Materials                    6.0      Czech Republic      2.7
Information Technology       5.4      Austria             1.8
Health Care                  3.7      Turkmenistan        1.6
Industrials                  3.7      Ukraine             1.3
Other                        3.1      Kazakhstan          0.6
Utilities                    2.0
Consumer Discretionary       0.2
                          ----------                   --------
Total                      107.8       Total            107.8
                          ----------                   --------
Short Positions             -1.0       Short Positions   -1.0
                          ==========                   ========

*reflects gross market exposure from contracts for difference (CFDs)

Ten Largest Equity Investments(in order of Total Market value)

                                                  Total Market
Company                        Country of Risk         Value %
Sberbank                       Russia                     10.2
Gazprom                        Russia                      7.7
Mobile Telesystems             Russia                      4.9
Powszechna Kasa Oszczednosci   Poland                      3.7
OTP                            Hungary                     3.6
Magnit                         Russia                      3.5
Novatek                        Russia                      3.4
Mail Ru                        Russia                      3.1
Surgutneftegaz                 Russia                      3.0
Mol Hungarian                  Hungary                     2.6

Commenting on the markets, Sam Vecht and David Reid, representing the investment
Manager noted;

Market performance

In May, the MSCI Emerging Europe Index returned -1.5% (USD terms). This
reflected the sell-off across the wider Global Emerging Markets universe, which
has been driven by concern that the tapering of the US Federal Reserve
quantitative easing (QE) program would see rates increase. Emerging Markets
which have been beneficiaries of the `carry trade' were directly impacted with
many bonds, currencies and equities across the developing world posting losses.

Russia underperformed the benchmark in May, impacted by a raft of negative
macroeconomic news from elsewhere. The slowdown in Chinese industrial
production, slowing economic activity in the core of the Eurozone and concerns
over QE impacted sentiment.

Hungary was the strongest performer over the month as GDP surprised on the
upside, growing by 0.7% in the first quarter of 2013, exiting a technical
recession for the first time since 2011. Interest rates in Hungary were also
cut and now stand at 4.5%. This was the tenth consecutive cut in interest rates
as the central bank takes action to stimulate further economic growth.

Turkey underperformed despite the long-awaited sovereign debt upgrade from
Moody's to investment grade. The decision to cap interest rates on bank
overdraft deposit accounts is likely to weigh on earnings in the financial
sector.

After the month end, Turkish politics came into intense focus as what started
as a localized protest about the development of one of the few remaining green
spots of Istanbul morphed into something more. A heavy handed response to the
initial protest reflected an increasingly authoritarian stance struck by Prime
Minister Recep Tayyip Erdoğan, which only served to amplify the demonstrations,
which spread to other cities across Turkey

Portfolio performance

In May, the Eastern European Trust returned -1.9%, underperforming the
benchmark by 0.4% (USD terms).

The strongest individual contributor to performance was an overweight position
in Russian stock exchange, Moscow Exchange (MICEX). The company, which
announced its first set of results since the successful IPO, reported stronger
than expected net profit.

An underweight position in Russian energy name, Lukoil was also positive after
the company released a disappointing trading update.

Detracting from performance in May was Russian telecom, Vimpelcom, after talks
to sell non-core operations in North Africa ended without resolution.

Also underperforming in May was Russian energy name TNK-BP after a delay in the
dividend policy from parent company, Rosneft.

Activity

We initiated a new position in Russian utility provider, Enel OGK-5. The
company has completed a capital expenditure phase, giving it the ability to
return cash to shareholders through dividends.

We sold the position in Kazakh miner, ENRC, as the share price rallied
following news of a potential bid from the Kazakh government and founding
shareholders.

Market Outlook

Recent market attention has been focussed on events in Turkey. The potential
for political surprise is always greatest where investors think about it least.
The political challenges in Turkey have been an area which many recent
investors have ignored. Although these events will have some short-term impact,
we believe that Turkey's long-term future is bright as it emerges as a regional
power-broker and economic hub.

Russia continues to trade at a significant discount to global peers, trading on
a PE of 5x. Russian companies represent good value and are increasing returns
on capital through buy-backs and dividend policies.

In central Europe, GDP growth remains subdued but action, particularly in
Poland, to ease monetary policy and stimulate growth will take effect over the
next 12-18 months

Russian and Eastern European markets have significant long-term structural
advantages. They benefit from flexible and dynamic economies with undervalued
currencies and educated and skilled workforces, allowing the countries of the
region to remain competitive in a globalized market.

Despite the attendant risks, valuations are still attractive and many of these
risks remain reflected (and more) in the price. The long-term outlook for
Emerging Europe is bright.

17 June 2013

ENDS

Latest information is available by typing www.estplc.co.uk on the internet,
"BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV
terminal). Neither the contents of the Manager's website nor the contents of
any website accessible from hyperlinks on the Manager's website (or any other
website) is incorporated into, or forms part of, this announcement.

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