Inspirit Energy Regulatory News (INSP)

27 October 2014

Inspirit Energy Holdings plc

("Inspirit Energy", "Inspirit" or the "Company")

Technology Update on Inspirit's mCHP boiler-generator

Inspirit Energy (LSE AIM: INSP) is pleased to announce that it has entered the stage of finalising its commercial design and committing to tooling with a number of its engineering partners and suppliers. This significant investment demonstrates Inspirit's progress towards achieving full certification approval and commercialisation of the Company's highly efficient mCHP micro co-generation boilers.

The Company can also announce that it has installed a demonstration facility at its Sheffield site. This facility will be able to accommodate a single or multiple Inspirit boilers as well as a conventional heating system. The purpose of this investment is to demonstrate to potential customers how the Inspirit mCHP appliance can work individually or in tandem with other Inspirit units in a cascade configuration to independently meet the demand of the heating circuit or in conjunction with a conventional boiler when the total heat demand is greater.

As well as providing the opportunity to establish the suitability of the mCHP appliance for a variety of heating applications to customers, the facility will also allow Inspirit's technical staff to provide familiarisation training to installers.

John Gunn, the Company's CEO, commented:

"This commitment to investment in tooling and the installation of a demonstration and training facility is an important step for the Company to demonstrate its progress and expand its marketing initiatives with a much broader range of potential customers. We are seeing strong interest from corporates and utilities here in Europe and now from North America, some of which we are optimistic of signing as participants to our commercial trials."

The Inspirit mCHP micro co-generation boiler:

Inspirit Energy's new washing machine-sized mCHP micro co-generation boiler is one of the industry's most powerful and energy efficient mCHP appliances for its size with simultaneous generation of up to 15 kilowatts of thermal output and up to 3 kilowatts of electrical output. The appliance's patented engine will take the waste heat from the boiler and convert it efficiently in to electricity; first supplying your own property and feeding surplus electricity into the national grid.

Inspirit's Development Partners:

The Inspirit mCHP appliance consists of 4 key systems, each of which has been designed with the help of engineering partners:

• Adigo has been instrumental in advising on the remodelling of the original heaterhead and regenerator components of the Stirling Engine design (Inspirit's proven prototype) for the final appliance.

• GE Precision are a key partner in developing and manufacturing the internals of the Stirling Engine with FEA analysis of the Crankcase, Piston and Rhombic Drive Assembly that converts the heat energy into the motion required to generate the electrical output. This is the driving force of Inspirit's mCHP appliance.

• Sentec have assisted in the design of the control system including the user interface, diagnostics and management of the supply back into the Grid.

• Enertek have assisted in the design of the gas combustion system, heat recovery system and will assist Inspirit in gaining the required approvals certification.

Manufacturing Partners:

• Malvern Boilers have been chosen as Inspirit's manufacturing partner to build the initial trial units and to bring the product to market when fully commercialized. Malvern's experience in building small batch gas products and their group of subcontractors are ideal for Inspirit's requirements and they will be in control of the product introduction process and supply chain management.

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