Press Releases

17 June 2010              

IPSA Group PLC         

("IPSA" or "the Company")

Trading update and Sale of shares by IPC

Newcastle generation plant

IPSA PLC (AIM: IPSA), the developer, owner and operator of power generation capacity in Southern Africa, announces that it has arranged short term loan facility of £300,000 to allow its generation plant in Newcastle, South Africa, to restart operations in order to supply electricity during the remainder of the month of June under a short term power purchase agreement with Eskom Holdings Limited ("Eskom").  Subject to obtaining the necessary approvals for the loan, the plant is expected to generate electricity for 9 days.

The £300,000 loan facility was entered into with Sterling Trust Limited, a private investment company based in the United Kingdom ("Sterling Trust"), on 16 June 2010, at a fixed annualised rate of 12 per cent. and is repayable within 90 days of drawdown.  Sterling Trust will be repaid the capital and interest out of the revenues received at the Newcastle plant.  Sterling Trust will also receive  warrants to subscribe for 300,000 new ordinary shares in IPSA ("Ordinary Shares") at a price of 15 pence per share, exercisable within 24 months.

As announced in the Company's recent interim results, IPSA is in negotiations with potential South African lenders for a refinancing of up to US $20 million of its own inter-company funding of the Newcastle plant.

Sale of shares by IPC

In conjunction with the Newcastle loan, on 14 June 2010, Sterling Trust acquired 6,125,000 Ordinary Shares at 12p per share (6.45% of the Company) from the Independent Power Corporation PLC, a company controlled by Peter Earl, the Company's CEO.  In addition, IPC placed a further 2,000,000 Ordinary Shares off-market at 12p per share with the adult children of Peter Earl, leaving IPC with no further shareholding in the Company.  However, IPC continues to lend to IPSA and, in addition, has conditionally acquired one of IPSA's four gas turbines subject to obtaining necessary project approvals and financing, as previously announced.

Following this sale of shares by IPC, Peter Earl's remaining interest in the Company is held indirectly through 5,010,000 Ordinary Shares (5.27% of the Company) which are held by his wife, Emma Earl.

Read more: Trading update and Director's Deal

4 June 2010

Unaudited Interim Results for the Six Month Period to 31 March 2010

Chairman's Statement

I am pleased to report the Company's interim results for the six month period to 31 March, 2010. The results are broadly in line with our expectations.  The net loss after tax for the half year is £0.83m (2009 half year loss - £3.4m), giving a basic loss per share of 0.87p (2009 half year loss per share 3.8p).  The operating loss for the period under review was £1.08m (2009 - £1.2m).  During the comparative period in 2009 our South African operations saw some revenues to offset the operating expenses.  Unrealised foreign exchange gains during the first half of our current financial year have offset the interest and storage costs incurred.

The last year was a period of continued difficulty in the South African power industry as Eskom struggled to re-arrange its finances and to meet its obligation to sign contracts with independent power producers (IPPs) for the provision of privately generated electricity.  Now at last we seem to be sensing the first signs of an integrated energy policy for South Africa which includes IPPs at its heart.

Read more: Unaudited Interim Results