IPSA GROUP PLC - Statement Regarding Suspension

Statement Regarding Suspension

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")

                       Statement regarding Suspension

Further to the announcements by the Company of 15 March 2016 and 29 March
2016 and notwithstanding that the Company has now published its final and interim
results in accordance with AIM Rules 18 and 19, the Company has requested a
suspension in trading of the Company’s shares pending clarification of the
Company’s financial position.

As detailed in the previous announcements of 15 March and 29 March 2016, the
Company’s financial position remains difficult and uncertain. The Company is reliant
upon the forbearance of its creditors and notably Ethos Energy Italia SpA (‘Ethos’),
whilst it seeks to realise proceeds from the sale of assets held for resale, being
ancillary plant held by the Company together with the receipt of funds due from
Rurelec plc in relation to deferred consideration.

The Company has creditors totalling approximately £3.95m of which approximately
£3.7m is owed to Ethos. The Company’s principal assets are the balance of plant
held on the balance sheet at £4m and receivables currently due of approximately
£1.28m although the Company’s auditors issued an adverse audit opinion in the
financial statements for the year ended 31 March 2015 as a result of it believing
there should be a provision against the carrying values of these assets.

The focus of the Company is to realise sufficient funds from these assets to repay
all the Company’s remaining creditors. However, there can be no guarantee that
the Company will be successful in any sale or that the proceeds from the realisation
of these assets will be sufficient to repay the creditors and the risk remains that
the Company may need to be placed into administration.

Following the disposal of the Company’s operating business on 29 February 2016,
the Company is now an AIM Rule 15 cash shell and is seeking to conduct a reverse
takeover.

                       For further information contact:

  Mark Otto, Acting CEO                                  +27 (84) 219 2000
  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.

30 March 2016

SPONSOR: PSG CAPITAL PROPRIETARY LIMITED




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