Loan Note extension

9 May 2011

IPSA Group PLC

("IPSA" or "the Company")

Change in Repayment Date of Loan Notes and adjustment of warrant price

IPSA Group PLC (AIM:IPSA), the developer, owner and operator of power generation capacity in Southern Africa, announces that 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 on 5 March 2010, has been extended to 31st July 2011.

As part of the extension negotiations, the Company has agreed to re-set the exercise price of the warrants to 13.5 pence per ordinary share and, as a result of the extension of the Repayment Date, the exercise period now ends on 31st January 2014.

No other amendments to either the Loan Note Instrument or the Warrant Instrument have been made.

The Company intends to repay the Loan Notes either from a re-financing of IPSA's wholly owned power generation subsidiary, Newcastle Cogeneration ("NewCogen") or out of the proceeds of the sale of the 701 D turbines. The directors are satisfied that progress is being made on both matters.

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