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By Northland Capital March 24 2015, 8:20am Rame Energy (LON:RAME) – CORP: Update Market Cap: £8.2m; Current Price: 8.1p •Expansion of Santander agreement and sale of Punta Chome •Expanded the capacity of the Chilean wind projects by 15MW (to 133MW) that are to be developed as part of the $69m framework agreement with Santander Investment Chile Limitada. The decision will boost cost efficiencies and economics by the addition of a 24MW wind project in conjunction with one of the framework’s existing projects that is nearby. The combined total of c. 54MW for the expanded project is planned to enter construction in Q4. The target remains for the capacity (now 133MW) to be installed by the end of 2016, subject to finance. •Given the efficiencies of the proposed addition, the 9MW Punta Chome project will no longer be considered for investment under the Santander agreement. As a result, Rame has executed binding terms with European renewable developer, EREN Développement, for the sale, pre-construction permit finalisation, on-site construction enabling work and project services. It is worth up to $2m between now and project completion (estimate Q2 2016). Rame retains the option to participate in up to 20% of the project’s equity. NORTHLAND CAPITAL PARTNERS VIEW: Positive update with the expansion of the framework agreement with Santander and the sale of Punta Chome. Rame has built up a considerable portfolio of potential projects at varying stages of development having operated in Chile as an EPC for a number of years. This portfolio provides a degree of flexibility as Rame builds up its IPP generating activities. The expansion of the Santander agreement follows the mechanical completion of the 15MW Raki/Huajache project that was co-financed with Santander separate to this agreement. The sale of Punta Chome demonstrates an increasingly buoyant market in Chile. In the first nine months of 2014, Chile installed 382MW of wind capacity, tripling 2013’s new build and doubling the total capacity as Chile looks to address its reliance on fossil fuels and capitalise on its potential for wind and solar power. Rame remains ideally placed to capitalise on this opportunity.

Rame Energy’s New fast tracked project with Santander ❝ Rame CEO Tim Adams said ”The introduction of a new project under the framework agreement with Santander increases the overall MW target and its consolidated returns. It is also testament to our ongoing relationship with Santander and the expanded 54MW project will be fast-tracked to construction by the end of 2016. The decision not to proceed with the Punta Chome project emphasises the ability of the partners to make effective changes to the strategy and to respond to emerging opportunities in this very dynamic market. “Moreover, we are delighted to have agreed terms with EREN for the Punta Chome project which recognise the value of Rame’s underlying project assets and project management skills and that will see the project progress quickly towards construction. I look forward to building on our relationship with EREN and demonstrating the opportunity to realise real value from our pipeline and capabilities with both our partners in addition to growing our presence as an IPP.” Rame, the independent power producer, has told DirectorsTalk that it has increased the capacity of its Chilean wind projects that are to be developed as part of the US$69 million framework agreement with Santander Investment Chile Limitada (“Santander”), by a net 15MW to 133MW. The Board has made this decision having confirmed that cost efficiencies and improved economics are achievable by developing a new 24 MW wind project in conjunction with one of the framework’s existing projects which is in close proximity. The combined total of approximately 54MW for the expanded project is planned to enter construction in Q4 of this year. The framework agreement with Santander now totals 133MW and the target remains to have this capacity installed by the end of 2016 subject to finance. This follows the successful mechanical completion of the 15MW Raki / Huajache project announced on 9 March 2015 which was co-financed with Santander separately to the framework agreement. Given the efficiencies outlined above, the 9MW Punta Chome project will no longer be considered for investment under the agreement with Santander. As a result, the Company is pleased to announce that it has executed binding terms with a leading European renewable developer, EREN Développement (“EREN”). The agreement covers the sale, pre-construction permit finalisation, on-site construction enabling works and other project services to assist EREN in the complete implementation of the project and is worth up to $2Mbetween now and project completion, estimated to be in Q2 of 2016. Rame retains an option to participate in up to 20% of the project’s equity.

Northland Capital partners view on Rame Energy PLC (LON:RAME): Positive update with the expansion of the framework agreement with Santander and the sale of Punta Chome. Rame has built up a considerable portfolio of potential projects at varying stages of development having operated in Chile as an EPC for a number of years. This portfolio provides a degree of flexibility as Rame builds up its IPP generating activities. The expansion of the Santander agreement follows the mechanical completion of the 15MW Raki/Huajache project that was co-financed with Santander separate to this agreement. The sale of Punta Chome demonstrates an increasingly buoyant market in Chile. In the first nine months of 2014, Chile installed 382MW of wind capacity, tripling 2013’s new build and doubling the total capacity as Chile looks to address its reliance on fossil fuels and capitalise on its potential for wind and solar power. Rame remains ideally placed to capitalise on this opportunity. Expansion of Santander agreement and sale of Punta Chome n Expanded the capacity of the Chilean wind projects by 15MW (to 133MW) that are to be developed as part of the $69m framework agreement with Santander Investment Chile Limitada. The decision will boost cost efficiencies and economics by the addition of a 24MW wind project in conjunction with one of the framework’s existing projects that is nearby. The combined total of c. 54MW for the expanded project is planned to enter construction in Q4. The target remains for the capacity (now 133MW) to be installed by the end of 2016, subject to finance. n Given the efficiencies of the proposed addition, the 9MW Punta Chome project will no longer be considered for investment under the Santander agreement. As a result, Rame has executed binding terms with European renewable developer, EREN Développement, for the sale, pre-construction permit finalisation, on-site construction enabling work and project services. It is worth up to $2m between now and project completion (estimate Q2 2016). Rame retains the option to participate in up to 20% of the project’s equity.

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