Update re Sale of Turbines

15 February 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 not yet occurred. No firm date for completion has as yet been offered by or agreed with Iris.

Although the contract with Iris has not been formally extended, discussions continue with a view to setting a firm timetable in which to complete the sale of the turbines and Iris continue to invest time and money in making arrangements to ship the turbines from Italy to their final destination leading the IPSA Board to continue to take as serious the Iris intention to complete the purchase.

However, in parallel with the Iris negotiations, discussions are taking place with a number of other parties who have expressed interest in acquiring the turbines and the board has approved the appointment of a specialist agency to re-market the units. Accordingly, the Company has now given Iris until the end of the month to enter into a new contract with a firm completion schedule.

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.

A further announcement will be made as and when appropriate.

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