Disposal

20 April 2012

Trading Emissions PLC

("TEP" or "the Company") 

Sale of investment

In line with Trading Emissions PLC's (TEP) current investment policy, namely the disposal of its private equity investments, TEP announces the sale of Santa Rita Limited Partnership's interest in Electricidad Andina S.A., a company incorporated in Peru with rights to a 255MW run-of-river hydro project, to Pacific Hydro Power S.A.C., a subsidiary of Rurelec Plc (AIM:RUR). TEP has a 97.3% interest in the Santa Rita Limited Partnership.

The loss attributable to TEP's investment in Santa Rita Limited Partnership in the 6 months to December 2011 was approximately USD1.5 million.

TEP's interest in Santa Rita Limited Partnership was valued at USD100,000 as of 31st December 2011. The sale is for an immediate payment of USD100,000 with USD400,000 payable upon the project receiving a power purchase agreement and a further USD9.5 million on financial close. The Investment Adviser estimates that it may take approximately 15 months to receive a power purchase agreement and financial close may occur in approximately 27 months. However, there is no guarantee that either will happen. An additional amount capped at USD5.0 million will be payable in the event that certain performance targets are met.

The initial sale proceeds will be received by Santa Rita Limited Partnership and distributed to its limited partners in accordance with the limited partnership agreement. Any future proceeds received by TEP will be retained until sufficient funds are available for a capital distribution.

For further information please contact:

For further information:

EEA Fund Management Limited +44 (0)20 7553 2361

Simon Shaw, Investment Adviser to TEP

Liberum +44 (0)20 3100 2222

Steve Pearce / Tom Fyson