Extension re Sale of Turbines

2 February 2012

IPSA Group PLC

("IPSA" or "the Company")

Extension re Sale of Turbines

IPSA Group PLC (AIM:IPSA), the developer, owner and operator of power generation capacity in Southern Africa, announces an update in respect of the sale of its two remaining Siemens Westinghouse 701 DU gas turbines.

Further to the announcement on 12 January 2012 of the completion of the turbine sale contract with Bright Day Pte Limited , the Company announces a delay in completion of the sale contract with Lezayre Holdings Limited ("Lezayre"), the purchaser of the remaining two turbines.

Lezayre has requested a three month extension of the contract completion date. The Company and its largest creditors, Standard Bank and TurboCare, are considering this request and a further announcement will be made as appropriate.

The Company confirms that its working capital position remains extremely tight. As stated previously, whilst the Company's operating subsidiary continues to be cashflow positive, additional working capital would be required by the Company in order to clear its overdue creditors, unless their repayment periods are extended, and pay operating expenses prior to completion of the sale.

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