Trading Statement

December 19th 2014

Nature Group PLC

("Nature" or the "Company" or the "Group")

Trading Update

Contract win

Nature Group PLC (AIM: NGR), the provider of port reception facilities and waste treatment solutions for the oil, marine and process industries, is pleased to announce that its subsidiary, Nature Oil & Gas AS, has signed a significant new contract for the deployment of a combined Compact Treatment Unit ("CTU") and Sludge Treatment Unit ("STU") in the Norwegian Continental Shelf on behalf of a new customer.

The unique combination of Nature's CTU, designed for on-site offshore waste water treatment, and STU, designed for heavy sludge treatment, results in a substantial cost saving when compared with traditional land based treatment as well as having a substantial positive environmental impact.

This contract, operations under which will commence by March 2015, is expected to generate initial revenues of £1.1 million and to result in additional services and revenues in 2015 and beyond.

This will be the fifth operation in the Norwegian sector for Nature Oil & Gas AS, in addition to operations in Brazil, Tanzania and the UK shelf.

Gibraltar update

The Group also announces the conclusion of the case brought in the Gibraltar Magistrates Court by the Factories Inspectorate against the Company's subsidiary, Nature Port Reception Facilities Gibraltar Ltd ("NPRFG"), relating to the accident on the 31st May 2011. As a result, a fine of £120,000 has been imposed on NPRFG. Whilst the timing of payment has yet to be decided, it will figure as an extraordinary charge in the current year. Meanwhile, NPRFG is in the final stages of the design for the rebuild of its storage facility in the first half of 2015 and expects to be fully operational again during Q3 2015 to offer customers using the Port of Gibraltar the best available Port Reception Facilities in compliance with the highest standards as required by legislation.

Trading update

In September, the Board stated that it was confident of a return to profitability for the Company in the second half of the year and for the year as a whole. However, the Company has seen only a marginal improvement in trading across all divisions and its financial performance has been further, adversely impacted by delays to certain expected revenues during the period. Accordingly, the Company expects to incur a loss before tax in respect of the second half of the year close to that reported for the first half of the year and the Company's results for 2014 are therefore expected to be materially below current market expectations.

Specifically, whilst the Company has a significant pipeline of new opportunities in its Oil & Gas division which it is working to convert to long-term contracts, revenues from the contract outlined above will now fall outwith the current financial year and will be deferred into 2015. In addition, in its Maritime division, a proportion of forecast oil sales have been delayed with the Company currently holding more oil in inventory than originally forecast as a consequence of the weaker oil market. The Company has also yet to reach the expected settlement conclusion with the Gibraltar Government in relation to a historical contract for the disposal of contaminated waste.

Andreas Drenthen, CEO, commented:

"Notwithstanding the volatile trading conditions experienced during the current financial year and the impact on our revenues of the delays to specific items, the Board remains confident of the long term prospects for the Company; our fundamentals remain underpinned by the ongoing trend of environmental legislation and the continuing increase in the recognition of the efficacy of our unique offshore treatment technology."

For more information

About Nature Group:

A company with more than 25 years' experience in waste water treatment and a unique corporate social responsibility (CSR) strategy that enables us to be truly a part of Nature and responding to the ever expanding and demanding legislative framework.

Nature Group combines port reception services and facilities, offshore treatment services and the latest sustainable waste treatment technologies in a steadily growing global network. Nature Group is traded on the AIM market, (ticker: NGR). www.ngrp.com

Ends