INFA.L Regulatory News (INFA)

InfraStrata plc

("InfraStrata" or the "Company")

 Portland Gas submits application in the CCS Innovation Programme of the Department of Energy and Climate Change

InfraStrata plc (AIM:INFA), the independent gas storage and petroleum exploration company, is pleased to announce that its wholly owned subsidiary, Portland Gas Storage Limited ("PGSL"), has submitted an application in a competition of the Department of Energy and Climate Change ("DECC"). DECC is to invest up to £20 million in the development and demonstration of technologies and feasibility studies associated with carbon capture and storage ("CCS"). The competition forms part of DECC's £125 million R&D and Innovation Programme for 2011-15. The results of the competition will be known at the end of August 2012.

Commenting on the application, Andrew Hindle, CEO of InfraStrata plc said:

"PGSL has been reviewing the potential for adding a CCS element to the Portland Project.

If successful the R&D project would include the drilling of a new borehole, creation of a mini-cavern and the undertaking of a range of tests. Salt caverns have been used for the past 50 years for the storage on a day-to-day and seasonal basis for a wide range of liquids and gases including natural gas, propylene, ethylene, propane, hydrogen and crude oil. It is anticipated that salt caverns would be suitable for the permanent storage of CO2 to support the decarbonisation of energy production in the UK."

For further information please contact:

InfraStrata plc

Andrew Hindle, Chief Executive Officer 020 8332 1200

Craig Gouws, Chief Financial Officer

Financial PR - Buchanan

Richard Darby/Gabriella Clinkard 020 7466 5000

Nominated Advisor and Broker - Seymour Pierce

Jonathan Wright - Corporate Finance 020 7107 8000

Richard Redmayne - Corporate Broking

Notes to Editors:

Background on InfraStrata plc

InfraStrata is an independent gas storage and petroleum exploration company. The Company is focused on two areas in the UK, in Dorset, England and Antrim, Northern Ireland.

Background on Portland Project

Planning permission was granted by Dorset County Council in May 2008 for a 1000 million cubic metre gas storage facility. The planning permission for the project also includes the construction of gas-fired power generation capacity at the Portland site and permission to construct a 36inch gas pipeline to connect to the National Transmission System at Mappowder in North Dorset.

Further information is available on the Company's website www.infrastrata.co.uk.

In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies, the information contained in this announcement has been reviewed and signed off by the Chief Executive Officer of InfraStrata plc Dr Andrew Hindle, a Chartered Geologist with over 25 years' experience.