Convertible Loan Notes

Plutus PowerGen Plc / Ticker: PPG / Index: AIM

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

Subscription for convertible loan notes to raise £200,000

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 the Company has raised £200,000 (before expenses) through a subscription of £200,000 of unsecured convertible loan notes of £1 each (the "Convertible Loan Notes") from an existing shareholder of the Company (the "Subscription"). The net proceeds of the Subscription will provide additional working capital for the Company to continue its plans for the development, construction and operation of flexible stand-by electricity generation in the UK, including grid connection deposits, which will enable the Company to accelerate grid connection processes.

The term of the Convertible Loan Notes is 24 months from the date of issue, this being 18 December 2014. The Convertible Loan Notes are convertible into 25,000,000 new ordinary shares of 0.1 pence each in PPG (the "Conversion Shares") at any time up to maturity at a price of 0.8 pence per share (the "Conversion Price"). The Conversion Price represents a premium of 28.8 per cent. to the closing mid-market price of 0.6211 pence on 17 December 2014.

The Convertible Loan Notes will be convertible at the sole option of the noteholder. Interest on the Convertible Loan Notes will be payable at the rate of 8 per cent. per annum, payable quarterly in arrears. The Convertible Loan Notes will be repayable on the maturity date (subject to any conversion rights being exercised during the term of the Convertible Loan Notes). No application will be made to any listing authority, stock exchange or other market for the Convertible Loan Notes to be listed or otherwise traded.

Assuming that the full proceeds of the Subscription are received by the Company and that the Convertible Loan Notes are converted in full, the 25,000,000 new Conversion Shares arising on such conversion would represent 4.87 per cent. of the enlarged issued share capital of PPG (as enlarged by the issue of the Conversion Shares and assuming that no other new ordinary shares are issued pursuant to any other outstanding convertible loan notes, deferred consideration and/or share options).

For further information, please visit www.plutuspowergen.com, or contact:

**ENDS**

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.