Inspirit Energy Regulatory News (INSP)

Inspirit Energy Holdings plc

("Inspirit" or the "Company")

Inspirit and Malvern sign closer manufacturing partnership agreement

Following the recent announcement that Inspirit (AIM: INSP) has successfully raised £1,000,000 (gross) through direct subscriptions, to fund the next important commercialisation phase of the Inspirit mCHP (micro combined heat and power) boiler, the Company has concluded a more detailed manufacturing partnership agreement with Malvern Boilers Ltd. This agreement will see the companies working closer together to achieve the joint goals of producing the initial trial boilers for evaluation sites by the end of October 2014 and placing Malvern in the controlling role of managing the product introduction and supply chain.

Through this new agreement the Worcester based independent manufacturing company has committed its resources and expertise to spearhead Inspirit's program to deliver the first of its

pre-sales units to key potential customers and to develop a global supply chain that will allow the product to enter the market at a competitive price.

Malvern's experience in the manufacture of other mCHP appliances as well as more conventional gas heating products will provide the timely evaluation of the design for manufacturing so that the lead into full production can be completed in the most cost effective manner. The date for full production will be finalised and communicated upon the completion of the initial build and conclusion of these evaluations.

John Gunn, the Company's Chief Executive Officer commented:

"This latest agreement with Malvern Boilers has cemented a key building block in the foundations of Inspirit realising its stated intention to launch a market changing product into the energy supply sector. Each customer can look forward to generating a significant amount of power locally and to break the strangle hold of the Big 6 supply companies in the UK."

For further information please contact:

About Inspirit Energy Holdings plc:

Inspirit Energy Holdings plc, is developing and commercialising a highly efficient micro combined heat and power (mCHP) boiler for the commercial and residential markets. The boiler is specifically designed to meet the challenge of reduced carbon energy supply and is capable of running on natural gas, LPG and Bio Fuels. The appliance produces hot water (for tap water or central heating) and electrical output simultaneously. The installation can be of single or multiple configuration and its high operating efficiency together with the off-set of electricity costs provides a very attractive investment payback proposition.

Inspirit intends to explore opportunities to licence out the underlying technology and the Directors believe that in some instances, the patents owned by Inspirit may be also used in the development of products other than a mCHP appliance. A prototype of the appliance has been independently tested and shown to be capable of simultaneous generation of up to 15kW thermal and up to 3kW electrical output. Once development of the appliance has been completed and commercialised, the Directors expect that the appliance will initially be marketed in the UK and Europe and eventually worldwide. Additional revenue streams may be possible through product licensing, sales of warranties and further development of the product.