Essar Energy Regulatory News (ESSR)

Essar Energy refinances US$450 million bridge loan

May 15, 2012: Essar Energy plc [LSE: ESSR], the India-focused integrated energy company, today announced that it has refinanced a US$450 million bridge loan which was due December 2012 with a new US$300 million 3 year secured loan facility and US$150 million of internal cash resources. Separately, Essar Energy has also signed a US$250 million 3.5 year subordinated unsecured loan facility with Essar Global Limited for general corporate purposes.

The new US$300 million 3 year secured loan facility is being provided by a consortium of banks who were the lenders under the original US$450 million bridge loan facility.

The US$250 million subordinated unsecured loan facility is being provided by Essar Global Limited on normal commercial terms and can be utilised for general corporate purposes. The facility is currently undrawn, but can be drawn in full or in part at any time during the 3.5 year life of the facility.

Commenting on the refinancing, Naresh Nayyar, CEO of Essar Energy said: "The completion of these financings provides Essar Energy with additional debt facilities including an extended maturity profile and demonstrates continued strong support from our banking group and major shareholder. The successful commissioning of the Vadinar refinery and near completion of three of our major power plant projects marks an inflexion point in our capital expenditure cycle and will see a significant improvement in the cash flows within our businesses."

Notes to editors:

Essar Global Limited owns 76.82% of Essar Energy plc.

For further information on Essar Energy, please visit www.essarenergy.com

For further information on the Essar Group, please visit www.essar.com

Alternatively, please contact:

Essar Energy

Mark Lidiard, Director of Investor Relations & Communications +44 20 7408 8714 or +44 7554 440421

Andrew Turpin, Head of Media Relations +44 20 7408 8702 or +44 7827 283659

Capital MS&L

Richard Campbell +44 20 7307 5334 or +44 7775 784 933

Nicholas Bastin +44 20 7255 5117 or +44 7931 500 066

About Essar Energy

Essar Energy (LSE:ESSR) is a world class, low-cost, integrated energy company with an established track record.

Essar Energy, through its subsidiaries, owns one of India's largest private power producers with 2,200MW of installed capacity and projects under construction to expand its capacity to 9,670MW.

Essar Energy, through its subsidiaries, owns one of India's fastest growing private sector oil and gas companies with a diverse portfolio of exploration and production assets. The Vadinar refinery, located in Gujarat, is India's second largest private sector oil refinery with throughput capacity of 18 million metric tonnes per annum and with further plans to expand to 20mmtpa by September 2012.

About Essar Group

The Essar Group (the "Group") is a multinational conglomerate and a leading player in the sectors of Steel, Oil, Gas, Power, Communications, Shipping, Ports, Logistics, Construction and Minerals. With operations in more than 25 countries across five continents, the Group employs over 75,000 people, with annual revenues of US$17 billion.

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This announcement contains certain forward-looking statements, including statements regarding Group's plans, objectives and performance. Such statements relate to events and depend on circumstances that may occur in the future and are subject to risks, uncertainties and assumptions. Although the Group believes that the expectations reflected in such forward looking statements are reasonable, there are a number of factors which could cause actual results and developments to differ materially from those expressed or implied by such forward looking statements, including, without limitation, the enactment of legislation or regulation that may impose costs or restrict activities; the re-negotiation of contracts or licences; fluctuations in demand and pricing in the Oil and Gas, Power and Energy industries; fluctuations in exchange controls; changes in government policy and taxations; industrial disputes; war and terrorism. Further information on the significant risks and uncertainties associated with the Group's business is set out in the Prospectus published on 4 May 2010. These forward-looking statements speak only as at the date of this document. The Group undertakes no obligation to update any forward looking statements whether as a result of new information, future events or otherwise, except to the extent legally required.

These statements (and all other forward-looking statements contained in this document) are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the Group's control, are difficult to predict and could cause actual results to differ materially from those expressed or implied or forecast in the forward-looking statements.

This announcement does not constitute, or form part of, an offer or any solicitation of an offer for securities in any jurisdiction, or an invitation or inducement to invest in the Group or any other entity and should not be relied upon in any way in connection with any investment decisions.