Restart of Newcastle Plant

24 March 2011

IPSA Group PLC

("IPSA" or "the Company")

Start-up of the Newcastle Cogeneration Plant

IPSA PLC (AIM:IPSA), the developer, owner and operator of power generation capacity in Southern Africa, announces that it has successfully re-commenced operations at its cogeneration plant at Newcastle KwaZuluNatal, South Africa. The plant is now supplying electricity to Eskom under the medium term power purchase agreement dated 26 August 2010.

Restarting the Newcastle cogeneration plant followed final agreement on a gas supply contract with Spring Lights Gas (Pty.) Limited, as announced on 23 February 2011. A recent placing of IPSA shares provided the working capital required to provide the required security under the Spring Lights gas contract.

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