Pinnacle Staffing Group PLC ("Pinnacle" or "the Company")

Related Party Transaction 

At the request of Barclays Bank PLC, on 25 November 2008 Tom Charlton, the Company's Executive Chairman, provided an unsecured personal guarantee of £500,000 in order to support the Company's existing invoice discounting facilities (the "Guarantee").

The Guarantee was requested by Barclays as a condition of temporarily relaxing the minimum headroom requirements under the invoice discounting facility.  The Guarantee has no date of expiry but can be terminated on three months notice by Mr Charlton.  As Mr Charlton is required under the terms of the Guarantee to seek legal advice, the Company has agreed to pay Mr Charlton's legal costs in respect of the personal guarantee amounting to £1,200 plus VAT.  

The transaction is classified as a related party transaction for the purpose of the AIM rules by virtue of the fact that Mr Charlton is a director of Pinnacle and has a beneficial interest in 26,200,538 ordinary shares in the Company representing 29.9% of the issued share capital.

In accordance with the AIM Rules, the Independent Directors of Pinnacle, being David Hope, David Laing and John Hodges, having consulted with the Company's Nominated Adviser, Brewin Dolphin Limited, consider that the terms of the Personal Guarantee are fair and reasonable insofar as the Company's shareholders are concerned.  

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