PPG.L Regulatory News (PPG)

Plutus PowerGen Plc / Ticker: PPG / Index: AIM

Plutus PowerGen plc ('PPG' or 'the Company')

Secures Non-Dilutive Funding to Construct First UK 20MW Flexible Power Project

Plutus PowerGen, the AIM listed power company focussed on the development, construction and operation of flexible stand-by electricity generation in the UK, is pleased to announce that its wholly owned subsidiary, Plutus Energy Ltd ("Plutus Energy"), has successfully completed the first stage of the equity fund raising for the construction of its first 20MW of flexible power generation.

As mentioned in the Company's Admission Document dated 5 August 2014, the Company entered into a Letter of Intent ("LOI") with Rockpool Investments LLP ("RockpooI Investments"), a network investment firm that offers private investors the chance to invest directly in private companies using HMRC sanctioned tax relief schemes such as the Enterprise Investment Scheme.

Pursuant to the terms of the LOI, Rockpool Investments agreed to invest in an SPV established by the Company, being Attune Energy 1 Limited ("Attune Energy"), with such investment to be used to enable Attune Energy to develop and build a flexible electricity generation facility and to provide working capital.

The total capital expenditure, working capital, fees and contingency for its first 20MW of flexible power generation is expected to be £5.4 million.

The first stage of equity investment by Rockpool represents £981,750.00 of the intended £3.4m of investment for Attune Energy. It is intended that Rockpool will provide the balance of the equity investment by January 2015.

As stated in PPG's AIM admission document, the £2 million balance of the funding for each 20MW of flexible stand-by power generation is intended to be covered by an asset finance facility.

Following the first stage of equity funding, and the intended further stages of equity funding referred to above, Plutus Energy will have an approximate 45% interest in the income of Attune Energy and will receive approximately 45% of all capital returned to shareholders of Attune Energy once the other shareholders have received a sum equal to their subscription monies.

Plutus PowerGen CEO Phil Stephens said, "This is a very exciting time for our business and we are particularly delighted to be working with Rockpool on this initial project. The market fundamentals in the UK for flexible power generation are highly positive. With this funding now secured, the structure of which is in line with our strategy to limit dilution of investors in PPG, we have met a crucial milestone in the delivery of our first 20MW project, which we anticipate will be the first of many with Rockpool Investments."

Andrew Green, Head of Investment of Rockpool Investments, commented "We are delighted to have agreed our first investment for the initial flexible stand-by power generation project and we look forward to continuing to assist PPG with further investment to fund additional facilities."

**ENDS**

For further information, please visit www.plutuspowergen.com, or contact:

Notes to Editors

Plutus PowerGen plc ("PPG") is an AIM listed company focused on the development, construction and operation of flexible stand-by power generation sites in the UK. At present, the market dynamics for flexible power generation are positive as a result of the continued downward pressure on capacity available to National Grid to balance supply and demand, leading to their announcements about possible power shortages over the next few years.

Flexible Power generators such as PPG offer a viable and timely solution to the power capacity shortfall in the UK. To this end, PPG is initially focusing on delivering 200MW of capacity over the next three years.

PPG has a straightforward multi-revenue stream model with large and stable counter-parties and is using project/EIS funding through SPVs to finance construction of the generation assets. This structure has the benefit of limiting dilution to plc shareholders as the assets are financed and built.

Rockpool Investments is a network investment firm that offers private investors the chance to invest directly in private companies. Since the beginning of 2013 it has helped over 750 people invest £75 million in 20 businesses. Rockpool invests £2-5 million apiece in UK-managed businesses across a wide range of sectors. Funded companies include the Chicago Rib Shack (a fast-casual restaurant chain), the Airedale Catering Group (fitting kitchens in schools and hospitals), Aegis Data (a data centre operator) and the Kirkleatham Crematorium.

Rockpool combines the best elements from crowdfunding (direct investment by individuals into private companies), private equity (due diligence, negotiating terms, active investor representation) and angel investment networks (investor engagement with their portfolio companies' CEOs). Rockpool was founded by Matt Taylor in 2011. Matt identified a need for individuals to gain access to good private companies, taking advantage of tax relief schemes such as the Enterprise Investment Scheme (EIS), Business Property Relief (BPR) and Business Investment Relief (BIR) - with associated multiple tax benefits, i.e. income tax, CGT, IHT reliefs and investment relief from remittance charges, for all equity investments. Investors can also invest through SIPPS or personal companies.