Dear Shareholder

You will note that I use the term Status Report as against the more usual Progress Report but in the current circumstances this seems more appropriate. As with many companies the recent and in part continuing lockdown continues to make our operational life extremely difficult.

Having announced some eight months ago the planned Pacific salvage, the success of which was hoped to have brought both operating profit and ideally the funding to return and complete our North Atlantic salvage, all plans became impossible under operational and travel constraints. That said and as I have previously reported, we have been attempting throughout the lockdown to recover landbased assets owned by our Pacific client for subsequent refining and disposal to fund our operations. We have had innumerable false starts as travel restrictions have made cross border transactions very uncertain and even now, when we have some expectation of success, two recent flights have been cancelled at the last minute. That said, we continue to make every effort to achieve our aims as the realisation of these assets is integral to our making progress.

Although it was hoped that successful recovery in the Pacific would provide the means to return to the Atlantic, we have not presumed that this would be the case and as a result we have been working hard on identifying new potential investment to fund a return to the Atlantic. Again, circumstances have not been ideal but we are having a number of ongoing discussions with investor groups who, perhaps not surprisingly feel that in the case of the Atlantic, the bulk of the hard work has been done and if there were to be an ideal time to invest this might be it.

In planning the return to the Atlantic and completing the work, we had divided the salvage programme into two stages, each to last circa 30 working days and with the hope that if the cargo was found in the first stage, there would be no need for the second. It also provided for the continuing possibility of being able to raise the funding and complete the first stage in 2020. This now seems unlikely for such are the practicalities and requirements of pre salvage planning that even if we had the funding in place in the short term, the continuing uncertainties of quarantine, country access etc make finely tuned and potentially expensive planning almost impossible. In addition, and not dissimilarly, were we to be successful in securing funding to start the Pacific programme our areas of operation having opened briefly this month have now been closed again and the future remains unclear as to when we could operate in the area.

In simple and disappointing terms, it seems that even if all our funding activities were to be successful, a return to either of the planned salvages in 2020 is unlikely. However, it would be our intention to return to both as soon as possible in 2021 having used any new and recovered funding to secure vessels and equipment at the current depressed price levels which would be immensely cost effective.

In home office terms, maintaining our expert salvage and research team throughout these has been a challenge but happily to date they remain involved and continuing to provide operational input and new research findings. Shareholders will recall that the most recent phases of the Atlantic salvage took place in a Gibraltar based joint venture and I have been much exercised in dealing with certain long tailed liabilities of that. It is expected that any return to the Atlantic will see BGL returning as a principal and master of its own destiny.

I shall report of developments as they occur but can confirm we are using maximum effort to ensure we return to the water as soon as possible.

Yours faithfully,

Philip Reid

Executive Chairman