Extension of Marketing Agreement

9 February 2011

IPSA Group PLC

("IPSA" or "the Company")

Extension of Marketing Agreement and Change in Repayment Date

of Loan Notes

IPSA Group PLC (AIM:IPSA), the developer, owner and operator of power generation capacity in Southern Africa, announces that it has agreed a short extension of the Marketing Agreement which governs the marketing of the Company's Siemens Westinghouse 701D gas turbines and the distribution of proceeds received in connection with a sale, whilst the parties decide whether a longer term extension is required.

A number of indicative offers for all four of its 701 D turbines are under consideration. The extension of the Marketing Agreement is intended to enable completion of negotiations and prepare necessary contracts for the sale.

The Marketing Agreement also provides for a standstill arrangement whereby Standard Bank and TurboCare, the Company's two largest creditors, have undertaken that they will not take proceedings against IPSA to recover the debts owed to them and that they will not enforce any security rights they may have during the term of the agreement. If not extended further, the Marketing Agreement will expire on 21st February 2011.

The Company also announces that the repayment date of its outstanding issue of £650,000 of nominal value of Loan Notes, together with accrued interest, which were issued to RAB Energy Fund Limited and certain other investors, has been extended to 30th April 2011. In the event the Marketing Agreement expires before this date, the Loan Notes will remain repayable on demand. The Company intends to repay the Loan Notes either from a re-financing of IPSA's wholly owned power generation subsidiary, Newcastle Cogeneration ("NewCogen"), which is currently under negotiation, or out of the proceeds of the sale of the 701 D turbines.

New contracts are currently in the final stages of negotiation for gas supply and steam offtake with the expectation of re-starting the NewCogen combined heat and power (CHP) plant at Newcastle in the near future. Start-up of the CHP would include the commencement of power sales to Eskom under the MTPPP contract signed in August 2010.

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