Disposal

Trading Emissions plc(the "Company")

Disposal

The Board of Trading Emissions PLC ("TEP") is pleased to announce that on 7 July 2014, its wholly owned subsidiary, TEP (Renewables Holding) Limited, sold its interest in EWG Slupsk Sp. z o.o. ("EWG Slupsk"), comprising a 64.44% equity interest and loans with an outstanding amount at 30 June 2014 of €4.2 million, to Pakenham Sp. z o.o. (the "Buyer"), a Polish special purpose vehicle owned and controlled by Winergy Last Mile Ltd.

The project under development by EWG Slupsk consists of 98 wind turbines across 8 wind farm clusters located in Northern Poland with an expected final capacity of 253.5MW. TEP (Renewables Holding) Limited funded EWG Slupsk with the aim of taking the project to a fully permitted and ready for construction stage before seeking an exit. The project has a grid connection agreement, land leases and has received all building and environmental permits and licences for construction of the wind turbine generators.

The consideration comprises an amount of €7 million payable in cash upon signature of the sales and purchase documentation and deferred amounts of between €15.4 million and €19.1million receivable over a period of up to 48 months from signature and after debt financing has been arranged to fund the development of the project. The deferred amounts could exceed the minimum if the Buyer obtains certain financing conditions from banks and successfully amends certain building permits.

To date, TEP (Renewables Holding) Limited has invested an aggregate of €10.5 million in EWG Slupsk. At 31 December 2013, the investment was valued at €6.8 million. EWG Slupsk generated a loss of PLN 2.0 million (approximately €465,000) in the six month period ended 31 December 2013 and a loss of PLN 6.0 million (approximately €1.5 million) in the financial year ended 30 June 2013.

TEP (Renewables Holding) Limited has provided various representations and warranties to the Buyer customary for this type of transaction. These representations and warranties expire within 24 months of signature of the sale and purchase documentation and the maximum aggregate liabilities are capped at 66% of all amounts actually received from the Buyer. It is currently intended that the proceeds of the sale will be held in treasury by TEP (Renewables Holding) Limited.

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