Refinancing of Standard Bank loan

27th March 2013

IPSA Group PLC

("IPSA" or the "Company")

Refinancing of Standard Bank Loan

IPSA Group PLC (AIM:IPSA), the developer, owner and operator of power generation capacity in southern Africa, advises shareholders that the Company has obtained a new short term loan in the amount of £4.2m and used the proceeds to repay all of the Company's secured bank debt which has for some time been in default, and where the consent of the bank has been required before a sale of its two remaining W701 DU gas turbines (the "Turbines") could be completed. The Company will benefit from this new funding arrangement, which allow time to achieve a sale of the Turbines.

The new loan in the amount of £4.2 million has been provided by Bluestone Securities Limited ("Bluestone"), a private investment company. The loan is due for repayment in 90 days unless extended by mutual agreement or earlier, inter alia, upon sale of the Turbines. A new turbine sale does not require the consent of Bluestone, provided certain minimum values are achieved. The interest rate on the loan is one per cent. per month compounded monthly, payable on the repayment date. A success fee of US$2 million will be payable on redemption of the loan resulting from a sale of the Turbines following receipt of the proceeds from such sale.

Bluestone is a BVI registered company and has no ownership interest, direct or indirect, in the Company.

The loan has been utilised to repay the loan from Standard Bank PLC, originally due for payment in September 2009.

The Company confirms that its working capital position remains extremely tight and that, without the continued support of all its creditors, additional working capital would be required by the Company in order to settle all its creditors prior to completion of the sale of the remaining two Turbines.

Negotiations to sell the Turbines are ongoing on a number of fronts and a further announcement will be made as and when appropriate.

Chairman Richard Linnell commented: "the support of Bluestone is most welcome and provides the Company with the funds to repay Standard Bank and sufficient breathing space to finalise negotiations for the sale of the turbines."

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