Operational Update 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") Operational Update IPSA announces that it has secured a short term loan of GBP500,000 from Radix International Limited for the next 6 months at an interest rate of 1 per cent per month. This will provide working capital until such time as the installation programme for the two Jenbacher gas engines, acquired at the end of 2013 adding 3.4MW at the cogeneration site, is completed which will be by the end of September this year. The engines have arrived in South Africa and are expected to materially add to the profitability of the Newcastle Cogeneration plant bringing the total increase in plant capacity to 40% since the end of 2013. The Company continues to manage its working capital. IPSA also advises that it is progressing the transfer to Rurelec PLC of the two Siemens Westinghouse 701DU turbines (ex Fiat Avio TG50DS turbines) subject to the sale and purchase agreement entered into on the 10th June 2013. Rurelec is completing arrangements for storage and shipment of the two turbines as part of the agreed hand-over arrangements. The deferred consideration remains outstanding for the time being. For further information contact: Phil Metcalf, CEO +44 (0)20 7793 5615 IPSA Group PLC James Joyce / Nick Field +44 (0)20 7220 1666 W H Ireland Ltd Riaan van Heerden, +27 (0)21 887 9602 PSG Capital (Pty) Ltd London 4 July 2014 Date: 04/07/2014 10:48:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.