PPG.L Regulatory News (PPG)

Plutus PowerGen Plc / Ticker: PPG / Index: AIM

15 January 2015

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

Placing to raise £500,000 to Develop 200MW Ahead of Schedule

Plutus PowerGen plc, the AIM listed power company focused on the development, construction and operation of flexible stand-by electricity generation in the UK, is pleased to announce that it has successfully raised £500,000 (before expenses) through the issue of 76,923,077 new ordinary shares of 0.1 pence each at 0.65 pence ("Placing Shares") to new and existing investors (the "Placing").

The Placing is in line with the Company's strategy to develop and operate flexible stand-by electricity generation in the UK. The proceeds raised are for working capital to secure grid connections and to accelerate and extend the business plan to deliver in excess of the currently planned 200MW within 3 years. In particular, the Placing enables the Company to capitalise on the excellent progress made to date with regard to the £13.6m of proposed funding from Rockpool Investments for the construction of the first four 20MW flexible power generation sites, the 140MW of secured grid connections and the additional 140MW of grid applications made in the South West of England.

Additionally, under current plans, the Placing is sufficient for PPG to become cash flow positive. This Placing is consistent with the Company's policy of minimising dilution to its shareholders with external investment for the flexible power plants going directly into the Special Purpose Vehicles ('SPVs').

Director Participation in Placing

Phil Stephens, Chief Executive Officer, has agreed to subscribe for 3,846,154 Placing Shares. Following completion of the Placing, Phil Stephens will hold 38,012,821 Ordinary Shares in the Company representing 6.65 per cent. of the enlarged share capital of the Company.

Charles Tatnall, Executive Chairman of PPG, said:

"We are delighted with the support shown for our business model, which is highly relevant in the current UK energy environment. This Placing positions us to rapidly deliver our target of at least 200MW of generating capacity within 3 years and to become cash flow positive ahead of schedule."

Issue of Equity

In addition to the Placing Shares, 6,192,308 new Ordinary Shares have been issued at a price of 0.65 pence per share to certain advisers and creditors in lieu of fees and outstanding amounts respectively, totalling £40,250 ('New Shares').

Admission

The Placing Shares and New Shares are being issued under existing authorities to issue and allot shares in the Company. Application will be made for the Placing Shares and New Shares to be admitted to trading on AIM. It is expected that admission will become effective and that trading in the Placing Shares will commence on or around 22 January 2015 ('Admission').

Total Voting Rights

The Placing Shares will rank pari passu with the existing Ordinary Shares. The rights attaching to the Placing Shares, including as to voting, are the same as those of the existing Ordinary Shares. Following the Placing, the total issued share capital of the Company consists of 571,428,935 Ordinary Shares of 0.1p each with voting rights. The Company does not hold any ordinary shares in treasury. Therefore, the total number of voting rights in the Company is 571,428,935 and this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

**ENDS**

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

Notes to Editors

Plutus PowerGen plc 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.