First Day of Dealings on AIM

Rame Energy / Index: AIM / Epic: RAME / ISIN: JE00BBD8GG53 / Sector: Energy

4 April 2014

Rame Energy plc ("Rame" or the "Company")

First Day of Dealings on AIM

Rame Energy plc, the vertically integrated international energy consultant, engineer and power generator, is pleased to announce the admission of its issued share capital to trading on AIM. Dealings will commence at 8.00 a.m. today. This follows the completion of a placing of 7,222,223 million new shares at 18 pence per share and the issuance of £800,000 of convertible loan notes to raise £2.1 million before expenses, giving the Company a market capitalisation of approximately £17.1 million on Admission. The funds raised will be used to fund Rame's equity participation in, and technical work on, near-term development wind projects in Chile. The Company is working with Santander Investment Chile Limitada ("Santander") to develop its first two wind power sites totalling 15MW which it expects to be operational by the end of 2014. Northland Capital Partners Limited is Nominated Adviser and Broker to the Company.

Overview

· Established revenue generative global supplier of cost effective, technically optimised and reliable power generation solutions including wind, solar and diesel to blue chip clients such as Akzo Nobel, Anglo American, Barrick Gold and BHP Billiton

· Rame has executed its first joint venture agreement with Santander to co-finance its first two wind projects totalling 15 MW in which Rame will have a 20% equity participation with an option to increase to 100% - project debt package is being provided by Chilean bank, Banco BICE

· £2.1 million raised to finance:

o Rame's equity participation in the next near-term wind project in Chile with a capacity of 9MW;

o completion of the final technical work on a further two sites with a combined capacity of 84MW;

o potential investment in other energy projects including diesel, biomass and solar; and general working capital

· Rame aims to become a niche Independent Power Producer ("IPP") targeting an operational portfolio of 300MW in Latin America within three years 

· The Company plans to build and operate a portfolio of power projects, capitalising on its proven track record of delivering power in South America - Rame has been involved in the development of approximately 23% of Chile's installed wind power capacity (as at 31 December 2013)

· Pipeline of 28 Chilean wind assets with a potential installed capacity of over 1.4 GW - well-placed to take advantage of large mining and industrial companies outsourcing their power requirements to reap cost benefits

· Vertically-integrated model with multiple revenue streams - power production revenues complemented by the provision of technical consultancy and downstream operating and maintenance services

· Highly skilled board and management team with a proven track record in providing project management and Engineering, Procurement and Construction ("EPC") services to both global conventional and renewable energy markets

· Chile's strained energy dynamic provides Rame with significant growth potential and yield opportunities to generate and sell power to its established client base

Rame CEO Tim Adams said, "Rame offers exposure to a high return/ low risk business model focused on developing, owning and operating power projects, initially in Chile. As evidenced by the high level of repeat business won over the last decade, our core competencies, primarily in the provision of bespoke power solutions to a blue chip customer base, are proven. Having already accumulated a pipeline of data on wind power projects in Chile with a combined capacity of over 1.4GW, we now intend to build Rame into a leading, vertically integrated niche IPP, encompassing all stages of power generation from project design to energy sales, thereby securing as much of the value as possible for the Company. 

"To achieve this, we are a 20% equity partner with Santander, a well-funded, supportive partner, with project finance being provided by Banco BICE to build our first two projects that we expect to be operational by the end of 2014. With the option to buy out Santander when the sites are operational we consider this a balanced risk approach to building our production portfolio. Subject to reinvestment of revenue from producing assets and financing, our target is to install an asset base of approximately 300 MW of energy projects over the next three years. We are confident that this strategy will allow us to rapidly develop and monetise our pipeline and, in the process, generate considerable value for shareholders."

Further Information

For further information and the Admission Document please see the Company's website: www.rame-energy.com

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