Completes GBP3.4 million financing of first 20MW

Plutus PowerGen Plc / Ticker: PPG / Index: AIM

2 February 2015

Plutus PowerGen plc ('PPG' or 'the Company')

Completes £3.4 million financing of first SPV for initial 20MW UK Flexible Power Generation Site

Plutus PowerGen plc, the AIM listed power company focused on the development, construction and operation of flexible stand-by electricity generation in the UK, is pleased to announce that it has closed the £3.4 million equity financing of its first Special Purpose Vehicle ('SPV'), Attune Energy 1 Limited ("Attune Energy 1"), with Rockpool Investments LLP ('Rockpool') (see press release 17.11.14). The SPV was established to finance PPG's first 20MW flexible power generation site, without equity dilution to the Company, and is in line with its strategy to develop 200MW of flexible stand-by power generation sites over the next three years.

The total capital expenditure, working capital, fees and contingency for Attune Energy 1 is expected to be £5.4 million. As stated in PPG's AIM admission document, the £2 million balance of the funding for each 20MW of flexible stand-by power generation is intended to be covered by an asset finance facility. The Company received the first stage of equity investment for Attune Energy 1 in November 2014 (see press release 17.11.14) and with the equity financing now completed for this SPV, the Company expects to receive the balance of funds within the next week. The sites are being built to address the need for flexible power due to the current capacity shortfall being experienced in the UK.

Phil Stephens, CEO of PPG said, "The closing of the equity funding for our first 20MW flexible energy generation site is a landmark achievement for PPG and underlines the recognition by investors of our model to deliver flexible power generation sites in the UK. We are now in a strong position to progress development of our first project in the south of England, and with signed funding proposals for a further three SPVs from Rockpool totalling £10.2m, we are well placed to deliver on our strategy of building 200MW of flexible power generation in the UK in the next three years."

**ENDS**

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Notes to Editors

Plutus PowerGen plc is an AIM listed company focused on the development, construction and operation of flexible stand-by power generation sites in the UK. At present, the market dynamics for flexible power generation are positive as a result of the continued downward pressure on capacity available to National Grid to balance supply and demand, leading to their announcements about possible power shortages over the next few years.

Flexible Power generators such as PPG offer a viable and timely solution to the power capacity shortfall in the UK. To this end, PPG is initially focusing on delivering 200MW of capacity over the next three years.

PPG has a straightforward multi-revenue stream model with large and stable counter-parties and is using project/EIS funding through SPVs to finance construction of the generation assets. This structure has the benefit of limiting dilution to plc shareholders as the assets are financed and built.

About Rockpool

Rockpool Investments is a network investment firm that offers private investors the chance to invest directly in private companies. Since the beginning of 2013 it has helped over 750 people invest £75 million in 20 businesses. Rockpool invests £2-5 million apiece in UK-managed businesses across a wide range of sectors. Funded companies include the Chicago Rib Shack (a fast-casual restaurant chain), the Airedale Catering Group (fitting kitchens in schools and hospitals), Aegis Data (a data centre operator) and the Kirkleatham Crematorium.

Rockpool combines the best elements from crowdfunding (direct investment by individuals into private companies), private equity (due diligence, negotiating terms, active investor representation) and angel investment networks (investor engagement with their portfolio companies' CEOs). Rockpool was founded by Matt Taylor in 2011. Matt identified a need for individuals to gain access to good private companies, taking advantage of tax relief schemes such as the Enterprise Investment Scheme (EIS), Business Property Relief (BPR) and Business Investment Relief (BIR) - with associated multiple tax benefits, i.e. income tax, CGT, IHT reliefs and investment relief from remittance charges, for all equity investments. Investors can also invest through SIPPS or personal companies.