INVESTOR SHARES OF ADMIRALTY FUND LTD. ("ADMIRALTY FUND") MAY NOT BE DIRECTLY OR INDIRECTLY OFFERED, SOLD OR TRANSFERRED IN THE UNITED STATES OR TO OR FOR THE BENEFIT OF A U.S. PERSON (AS SUCH TERMS ARE DEFINED IN REGULATIONS PROMULGATED UNDER THE U.S SECURITIES ACT OF 1933, AS AMENDED). INVESTOR SHARES ALSO MAY NOT BE OFFERED OR SOLD TO A BAHAMIAN PERSON AS DEFINED IN THE PRIVATE PLACEMENT MEMORANDUM OF ADMIRALTY FUND ("THE PRIVATE PLACEMENT MEMORANDUM").

YOU SHOULD CAREFULLY CONSIDER WHETHER YOUR FINANCIAL CONDITION PERMITS YOU TO PARTICIPATE IN ADMIRALTY FUND. IN SO DOING, YOU SHOULD BE AWARE THAT FUTURES TRADING CAN QUICKLY LEAD TO LARGE LOSSES AS WELL AS GAINS. SUCH TRADING LOSSES CAN SHARPLY REDUCE THE NET ASSET VALUE OF ADMIRALTY FUND. IN ADDITION, RESTRICTIONS ON REDEMPTIONS MAY AFFECT YOUR ABILITY TO WITHDRAW YOUR PARTICIPATION IN ADMIRALTY FUND. FURTHER, ADMIRALTY FUND MAY BE SUBJECT TO SUBSTANTIAL CHARGES FOR MANAGEMENT, ADVISORY AND BROKERAGE FEES. IT MAY BE NECESSARY FOR ADMIRALTY FUND TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF ITS ASSETS.

THE PRIVATE PLACEMENT MEMORANDUM CONTAINS A DESCRIPTION OF THE PRINCIPAL RISK FACTORS AND THE EXPENSES TO BE CHARGED TO ADMIRALTY FUND. THE REGULATIONS OF THE COMMODITY FUTURES TRADING COMMISSION ("CFTC") REQUIRE THAT PROSPECTIVE INVESTORS RECEIVE A PRIVATE PLACEMENT MEMORANDUM WHEN THEY ARE SOLICITED TO INVEST FUNDS IN A COMMODITY POOL LIKE ADMIRALTY FUND AND THAT CERTAIN RISK FACTORS BE HIGHLIGHTED. YOU MAY REQUEST DELIVERY OF A HARD COPY OR AN ELECTRONIC VERSION OF THE PRIVATE PLACEMENT MEMORANDUM, WHICH WILL BE PROVIDED TO YOU AT NO COST. THIS BRIEF STATEMENT CANNOT DISCLOSE ALL OF THE RISKS AND OTHER FACTORS NECESSARY TO ASSESS YOUR POSSIBLE PARTICIPATION IN ADMIRALTY FUND. THEREFORE, YOU SHOULD OBTAIN A COPY OF THE PRIVATE PLACEMENT MEMORANDUM AND STUDY IT CAREFULLY TO DETERMINE WHETHER SUCH TRADING IS APPROPRIATE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.

YOU ARE ENCOURAGED TO REQUEST DELIVERY OF A COPY OF THE PRIVATE PLACEMENT MEMORANDUM FROM THE FUND'S ADMINISTRATOR. THE CFTC HAS NOT PASSED UPON THE MERITS OF PARTICIPATION IN ADMIRALTY FUND NOR ON THE ADEQUACY OR ACCURACY OF THE PRIVATE PLACEMENT MEMORANDUM.