Update re Sale of Turbines

1st March 2013

IPSA Group PLC ("IPSA" or the "Company")

Update re Sale of Turbines

IPSA Group PLC (AIM:IPSA), the developer, owner and operator of power generation capacity in southern Africa, advises shareholders that the sale of the two turbines to Iris Eco Power Sdn BHD ("Iris") announced on 15 October 2012, and originally due to complete in November 2012, has now been abandoned. Iris did not complete the purchase by 28th February, as required by the IPSA Board.

While this is disappointing, negotiations are now taking place with another party willing to acquire the turbines for the same US$31 million price agreed with Iris. A further announcement will be made as and when appropriate.

The board continues discussions with other parties who have expressed interest in acquiring the turbines.

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 overdue indebtedness prior to completion of the sale of the remaining two Turbines.

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