IPSA GROUP PLC - Loan Agreement

Loan Agreement

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")

Loan Agreement

IPSA, the AIM and Altx dual listed independent power
plant developer with operations in southern Africa, today
announces that its subsidiary, Newcastle Cogeneration
Pty. Limited (“NewCogen”), has commenced drawdown of a
loan facility granted by the Industrial Development
Corporation of South Africa Limited (“IDC”).

The aggregate sum of the IDC loan facility is ZAR 15.4m
(£817,000). The loan is repayable in 48 monthly
installments from 1 April 2016 and the interest rate is
South African Prime Overdraft less 2%, currently 7.25 per
cent per annum. The funds will be used to repay
indebtedness at the NewCogen level and to pay the final
costs of installing the two Jenbacher engines which add
some 4 MW of new capacity on site.

Works to install the engines will commence later this
month and the planned commercial operation date is the
early September 2015. Once the engines enter service,
output will be sold under the newly extended MTPPP power
purchase contract with Eskom.

The Company’s working capital remains tight and is being
carefully managed until the expected receipt of the
remaining balances owed by Rurelec plc from the sale of
turbines.

Commenting today, Peter Earl, Acting CEO of IPSA, said:
“We are very pleased that the IDC is now supporting us in
the expansion of the plant at Newcastle. We hope that
this will be the first step in IPSA’s return to expansion
of power generation capacity in South Africa.”

For further information contact:
Peter R.S. Earl, Acting CEO    +44 (0)20 7793 5615
IPSA Group PLC

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

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

London
5 June 2015

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