Further Agreement with Rockpool Investments

Plutus PowerGen Plc / Ticker: PPG / Index: AIM

09 January 2015

Plutus PowerGen plc ('PPG' or 'the Company')

Enters into agreement with Rockpool Investments LLP for an additional £6.8 million EIS qualifying investment to fund two further 20MW Projects via SPVs

Plutus PowerGen plc, the AIM listed power company focused on the development, construction and operation of flexible stand-by electricity generation in the UK, announces that its wholly owned subsidiary, Plutus Energy Ltd ('Plutus Energy'), has extended its relationship with Rockpool Investments LLP ('Rockpool') and has signed a proposal for an additional £6.8 million equity investment, through Special Purpose Vehicles (SPVs) to limit dilution to PPG, for the construction of two further flexible power generation sites in the south of England. Both further projects, each of which will be allocated £3.4 million, will comprise of 20MW.

This agreement means that the Company now has proposals in respect to equity investment with Rockpool for four SPVs all in the south of England, the third and fourth established as Precise Energy Limited and Balance Power Limited respectively. The equity investment by Rockpool with these further SPVs will be achieved via a share issue under the Enterprise Investment Scheme ('EIS') on the same terms as Attune Energy 1 Limited ('Attune Energy 1'), an SPV established to fund the Company's first 20MW of flexible power generation (see press release 17 November 2014). The terms are outlined in the Company's Admission Document.

The total capital expenditure, working capital, fees and contingency for PPG's third and fourth 20MW of flexible power generation is expected to be £5.4 million per project. Following the completion of the equity investment by Rockpool, the balance is intended to be covered by an asset finance facility. Plutus Energy Limited will own 45% of the SPV and will have a right to 45% of the value of the SPV. As an associated company, PPG will be able to consolidate 45% of its share of the profit and loss account of the SPV.

Phil Stephens, CEO of PPG said, "We are delighted that Rockpool has entered into proposals for a total of £13.6 million of equity investment into the Company's SPVs. Our strategy is focussed on achieving 200MW within 3 years, and considering that these proposals amount to 40% of our total equity funding requirements for this target, we are well positioned to meet this target on, if not ahead of, schedule."

**ENDS**

For further information, please visit www.plutuspowergen.com, or contact:

Notes to Editors

Plutus PowerGen plc is an AIM listed company focused on the development, construction and operation of flexible stand-by power generation sites in the UK. At present, the market dynamics for flexible power generation are positive as a result of the continued downward pressure on capacity available to National Grid to balance supply and demand, leading to their announcements about possible power shortages over the next few years.

Flexible Power generators such as PPG offer a viable and timely solution to the power capacity shortfall in the UK. To this end, PPG is initially focusing on delivering 200MW of capacity over the next three years.

PPG has a straightforward multi-revenue stream model with large and stable counter-parties and is using project/EIS funding through SPVs to finance construction of the generation assets. This structure has the benefit of limiting dilution to plc shareholders as the assets are financed and built.

About Rockpool

Rockpool Investments is a network investment firm that offers private investors the chance to invest directly in private companies. Since the beginning of 2013 it has helped over 750 people invest £75 million in 20 businesses. Rockpool invests £2-5 million apiece in UK-managed businesses across a wide range of sectors. Funded companies include the Chicago Rib Shack (a fast-casual restaurant chain), the Airedale Catering Group (fitting kitchens in schools and hospitals), Aegis Data (a data centre operator) and the Kirkleatham Crematorium.

Rockpool combines the best elements from crowdfunding (direct investment by individuals into private companies), private equity (due diligence, negotiating terms, active investor representation) and angel investment networks (investor engagement with their portfolio companies' CEOs). Rockpool was founded by Matt Taylor in 2011. Matt identified a need for individuals to gain access to good private companies, taking advantage of tax relief schemes such as the Enterprise Investment Scheme (EIS), Business Property Relief (BPR) and Business Investment Relief (BIR) - with associated multiple tax benefits, i.e. income tax, CGT, IHT reliefs and investment relief from remittance charges, for all equity investments. Investors can also invest through SIPPS or personal companies.