IPSA GROUP PLC - Refinancing of Standard Bank Loan

Refinancing of Standard Bank Loan

IPSA GROUP PLC
(Incorporated and registered in England and Wales)
(Registration Number 5496202)
AIM Share Code IPSA   ISIN GB00BOCJ3F01
JSE Share Code IPS    ISIN GB00BOCJ3F01
("IPSA" or "the company")

Refinancing of Standard Bank Loan

IPSA Group PLC (AIM:IPSA), the developer, owner and operator
of power generation capacity in Southern Africa, advises
shareholders that the Company has obtained a new short term
loan in the amount of GBP4.2 million and used the proceeds to
repay all of the Company’s secured bank debt which has for
some time been in default, and where the consent of the bank
has been required before a sale of its two remaining W701 DU
gas turbines (the “Turbines”) could be completed. The Company
will benefit from this new funding arrangement, which allow
time to achieve a sale of the Turbines.

The new loan in the amount of GBP4.2 million has been provided
by Bluestone Securities Limited (“Bluestone”), a private
investment company. The loan is due for repayment in 90 days
unless extended by mutual agreement or earlier, inter alia,
upon sale of the Turbines.  A new turbine sale does not
require the consent of Bluestone, provided certain minimum
values are achieved. The interest rate on the loan is one per
cent per month compounded monthly, payable on the repayment
date.   A success fee of USD2 million will be payable on
redemption of the loan resulting from a sale of the Turbines
following receipt of the proceeds from such sale.

Bluestone is a BVI registered company and has no ownership
interest, direct or indirect, in the Company.

The loan has been utilised to repay the loan from Standard
Bank PLC, originally due for payment in September 2009.

The Company confirms that its working capital position remains
extremely tight and that, without the continued support of all
its creditors, additional working capital would be required by
the Company in order to settle all its creditors prior to
completion of the sale of the remaining two Turbines.

Negotiations to sell the Turbines are ongoing on a number of
fronts and a further announcement will be made as and when
appropriate.

Chairman Richard Linnell commented: “the support of Bluestone
is most welcome and provides the Company with the funds to
repay Standard Bank and sufficient breathing space to finalise
negotiations for the sale of the turbines.”

London
27 March 2013

For further information contact:


Phil Metcalf, CEO                  +44 (0)20 7793 5615
IPSA Group PLC

John Llewellyn-Lloyd / Harry       +44 (0)20 7456 9191
Stockdale
Execution Noble & Company Ltd

Harry Ansell / James Joyce         +44 (0)20 7220 1666
W H Ireland Ltd

Riaan van Heerden,                 +27 (0)21 887 9602
PSG Capital (Pty) Ltd

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