Settlement of Claim

10 August 2012

IPSA Group PLC

("IPSA" or "the Company")

Settlement of Sasol Claim

IPSA Group PLC (AIM:IPSA), the developer, owner and operator of power generation capacity in Southern Africa, announces that it has received confirmation of the withdrawal of the claim by Sasol Gas Limited against Newcastle Co-generation (Pty) Limited ("NewCogen"), the Company's wholly owned subsidiary, for sums claimed under the gas supply agreement terminated in August 2009 (the "Claim").

The Claim has now been withdrawn from the South Gauteng High Court following payment by NewCogen of the sum of ZAR 7 million (approximately £550,000). The settlement allows a provision of approximately £4m in IPSA's group accounts to be reversed, reducing trade creditors of NewCogen by a similar amount.

NewCogen made this payment having drawn down the loan offered by Sterling Trust Limited, the terms of which were announced on 27 July 2012.

Commenting, Richard Linnell, Chairman of IPSA, said: "I am delighted that this dispute has been settled as it removes one more uncertainty. We can look forward to continuing and improving on operations at our power plant in Kwa Zulu Natal."

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