IPSA.L Regulatory News (IPSA)

30 September 2015

IPSA Group PLC

("IPSA" or the "Company")

 Corporate Update

Further to its announcement of 20 August 2015, regarding the payment of sums due to Ethos Energy Italia ("Ethos"), the Company confirms a further sum of approximately Euros 340,000 has been paid by Rurelec PLC on behalf of IPSA Group PLC thereby further reducing the sum outstanding to Ethos already due to approximately Euros 1,515,000. Discussions over the timing of this balance continues between the parties with no set schedule.

As previously announced a further sum of approximately Euros 2.6m is also due to Ethos by today's date.

The Company remains reliant on the forebearance of Ethos in relation to these amounts as there has been no formal extension.

The Company's working capital remains tight and the Company is reliant on the forbearance of creditors principally, in addition to Ethos, Radix and accrued salaries to management and ex management and will need to raise further sums to satisfy them.

The Company continues its discussions in relation to its intentions to sell its remaining balance of plant in relation to the previously sold turbines as well looking at selling a minority interest in its operating subsidiary Newcastle Cogeneration Pty Limited ('NewCogen') although there can be no certainty the Company will be successful in raising funds from these sources or by other means.

The Company was due to publish is Financial Statements for the year ended 30 March 2015 by 30 September 2015. It has announced it will not be in a position to do so by that date and consequently it shares are suspended from trading but is looking to publish as soon as possible. Subject to the expected non cash write-down on the carrying value of plant and equipment, the underlying trading results of operations at Newcogen are broadly in line with that in 2014. It is also expected that the results will be affected by the write down of the balance of plant

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