LEF.L Regulatory News (LEF)

The following replaces the portfolio update announcement released today at 7am under the RNS number 4698C, due to a general text amendment. The full amended text appears below.

Ludgate Environmental Fund invests £14.1 million in resource efficiency

Ludgate Environmental Fund Limited ("LEF") is pleased to announce that it has agreed to make three new investments in biomass, anaerobic digestion and waste heat recovery, each with the expectation of significant growth potential.

Tamar Energy Limited ("Tamar")

As part of the UK's largest single commitment to anaerobic digestion to date, LEF announces that it is committing £7.0 million into equity in Tamar. The proceeds will be used to fund the development and construction of food and mixed waste anaerobic digestion plants that produce renewable energy. Tamar is developing a UK network of more than 40 plants with capacity to generate 100MW of electricity over the next five years. The company has an advanced pipeline of projects as well as experienced engineering and construction partners with proven success in the UK. Tamar announced in February that Sainsbury's, the UK's leading retail user of anaerobic digestion, is both an investor and strategic partner. Sainsbury's is working closely with its suppliers to help them access Tamar's plants and thereby reduce the environmental impact of their operations. LEF is investing alongside RIT Capital Partners plc, the Duchy of Cornwall, Fajr Capital and other investors to raise a total of £76.3 million.

Micropelt GmbH ("Micropelt")

LEF also announces today a £4.1 million (€5.0 million) growth capital investment in waste heat recovery company Micropelt GmbH, based in Freiburg and Halle, Germany. Mitsubishi UJF Capital Co. Ltd is participating alongside LEF and existing shareholders in a total fundraising of £5.3 million (€6.5 million). Micropelt's thermal energy harvesting technology uses waste heat to generate electricity, displacing batteries in automated equipment for a range of industrial and domestic applications. The company has strong partnerships with major semiconductor and system integrator players worldwide.

Ignis Biomass Limited ("Ignis")

The third investment, of £3.1 million in a combination of preferred equity and convertible loan notes bearing an 8 per cent coupon net of withholding tax, is being made for a majority stake in Ignis. The funds are intended for the construction of a biomass energy plant in Wick, Scotland to replace oil-fired heat production for the district heating network which is to be bought from the Highland Council.

Chairman of LEF, John Shakeshaft said, "We are pleased to make these three investments in high growth industrial cleantech companies. These deals represent diverse investment in critically important resource efficiency supporting sustainable economic growth."

Portfolio Subscription and Disposal

LEF has subscribed to £1.3 million of convertible loan notes into Terra Nova, alongside subscriptions by existing investors bringing the total invested to £3.6 million. These notes are a one year instrument bearing 6 per cent interest.

LEF also announces that it has redeemed 1,090,194 shares in New Earth Recycling & Renewables (Infrastructure) plc ("NERR") at 142.1 pence per share, receiving £1.55 million in cash. This compares to the subscription price paid by LEF of 135.9 pence per share. Following this redemption, LEF holds 2,180,389 shares in NERR which at a price of 142.1 pence per share values the remaining holding at £3.10 million.

2 May 2012

For further information contact:

Ludgate Environmental Fund:

Chairman, John Shakeshaft +44 1534 609 233

Ludgate Investments Limited:

Chief Investment Officer, Bill Weil+44 (0)20 7621 5770

NOMAD - PricewaterhouseCoopers LLP:

Chris Clarke+44 (0)20 7212 1798

Broker - Matrix Corporate Capital LLP:

Paul Fincham+44 (0)20 3206 7175

Notes to editors

About Ludgate Environmental Fund Limited

Ludgate Environmental Fund invests in a diverse portfolio of late stage emerging companies in the European cleantech sector. Actively managing its holdings, Ludgate Environmental Fund invests growth capital. We focus on waste management and recycling; renewable energy; energy efficiency; and water.

Ludgate Environmental Fund was launched in August 2007 and has assets under management of approximately £49.0 million as at 31 March 2012. Ludgate Environmental Fund is a Jersey domiciled closed-ended investment company, quoted on AIM under the symbols LEF.L for the shares and LEFW.L for the warrants.

For more information www.ludgateenvironmental.com

About Tamar Energy Limited

Tamar Energy is an innovative company focused on producing energy from organic waste matter, launched in February 2012, backed by a strong investor group who are contributing over £76.3 million to establish the business. Tamar Energy will develop a UK network of over 40 anaerobic digestion plants to generate 100MW of green electricity over the next five years.

Tamar brings together an investor group led by RIT Capital Partners plc and Fajr Capital, alongside the Duchy of Cornwall, Lord Rothschild's Family Interests, Sustainable Technology Investments, Low Carbon Limited, the management team of Tamar Energy and other private investors. Tamar Energy's experienced management team is headed by Alan Lovell, previously the Chief Executive of Infinis Limited, as Executive Chairman.

For more information www.tamarenergy.net

About Micropelt GmbH

Micropelt is a developer, producer and marketer of the world's smallest thermal energy harvesting chips. The thermoelectric micro chips are based on a patented and scalable thin-film technology which reduces component size while maximising power density. The chips scavenge free electric power from waste heat to replace or recharge batteries in wireless sensor networks and micro actuators.

Based in Germany, Micropelt employs 23 staff and opened its first production facility in June 2011.

For more information www.micropelt.com

About Ignis Biomass Limited

Ignis Biomass specialises in the generation of renewable energy from sustainable sources, providing UK business and public sector organisations with local solutions for energy, waste management and CO2 emissions reduction.

For more information www.ignis-biomass.com