Share Option Scheme and Grant of Options

3 May 2012

IPSA Group PLC

("IPSA" or "the Company")

Adoption of IPSA 2012 Share Option Scheme and Grant of Options

The Company's board announces that it has adopted a new share option plan, the IPSA Group PLC 2012 unapproved Share Option Plan.

The Company has not previously put any form of share option scheme in place, and is doing so now in order to grant options to compensate certain directors and the company secretary for the deferment of their fees and/or salaries which in some cases have not been paid for over forty months.

Therefore on 2 May 2012, pursuant to this option plan, IPSA granted options over 2,500,000 ordinary shares of 2 pence each ("Ordinary Shares"), representing 2.33% of the current issued share capital. The exercise price on all these options is 5 pence per share.

These options over Ordinary Shares in the Company were granted to the directors and company secretary as follows:

At 31 December 2011, the outstanding fees and/or salaries payable to these directors and the company secretary amounted to approximately £1.1m. It is not anticipated that the Company will pay these amounts until the sale of its second pair of turbines completes. Currently, the directors expect this to be during June 2012, at which time the Company expects to settle all its outstanding creditors.

All of the above options vest with immediate effect.

Phil Metcalf, Chief Executive of the Company commented: "Although guidance for larger companies is that companies should not issue share options to non-executive directors, we appreciate that our non-executives have remained on the board despite non-payment of fees. The guidance also recommends a three year vesting period for share options in normal circumstances. However, the options granted today vest immediately to reflect the period in which the Company has not remunerated its board and officers."

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