Cayman National

Cayman National Announces Share Purchase

9 October 2008

Cayman National Corporation Ltd. announced today that Yellow Pilgrim Ltd., a company owned by the Cayman National Corporation Provident Fund (a trust), purchased 1,000,000 common shares in the capital of CNC in an off-market transaction.

These shares had originally been issued to Aall Trust & Banking Corporation Ltd. ("Aall") as consideration in CNC's purchase of certain of Aall's assets in 2004. Considering this factor and the size of the purchase, Yellow Pilgrim paid an appropriate discount to the present market price for the shares.