MAURITIAN EAGLE INSURANCE COMPANY LTD

CAUTIONARY ANNOUNCEMENT

Subject to the approval of the relevant authorities and the shareholders at a meeting of shareholders to be held on 26 June 2007, the company intends to proceed with a BONUS ISSUE of 5,333,332 ORDINARY SHARES in the ratio of TWO (2) NEW SHARES FOR EVERY ONE (1) SHARE held.

Shareholders and the public in general are therefore advised to be cautious when dealing in the shares of the company and will be kept informed of any further developments.

By Order of the Board

S.P. REY

Secretary

27 March 2007

This announcement is issued pursuant to Listing Rule 11.3. The Board of Directors of the MAURITIAN EAGLE INSURANCE COMPANY LTD accepts full responsibility for the accuracy of the above information.