PPG.L Regulatory News (PPG)

Plutus PowerGen plc / Ticker: PPG / Index: AIM

3 February 2015

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

Exclusive Agreement with Rockpool Investments LLP for Total Non-Asset Finance Investment of £34 million into its SPVs for 200MW of Flexible Power Generation Sites

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 signed an exclusive agreement for Enterprise Investment Scheme ('EIS') funding with Rockpool Investments LLP ('Rockpool') whereby Rockpool proposes to fund via ten Special Purpose Vehicles ('SPVs') of 20MW each for the construction of a total of 200MW of flexible energy generation in the UK, a total of £34 million of equity, including the £13.6 million already announced.

Following the completion of this exclusive arrangement, the non-asset finance component required to meet the Company's initial target to develop 200MW of flexible energy generation in the UK over three years, will be fully funded with no equity dilution to PPG. This exclusive agreement represents a transformational milestone for PPG as it, upon receipt of funds, would complete the funding requirement of its three-year target of 200MW of generation capacity.

Plutus Energy Limited will own 45% of each SPV and will have a right to 45% of the value of each SPV. As an associated company, PPG will be able to consolidate 45% of its share of the profit and loss account of the SPV. The exclusive period under the agreement runs until 30 June 2016 with a break clause if, inter alia, Rockpool fails to introduce EIS funding for five SPV's before 30 June 2015.

Phil Stephens, CEO of PPG said, "This exclusive agreement dramatically de-risks our path towards delivering over 200MW of flexible power generation sites in the south of England and demonstrates a distinct funding route in respect of the non-asset finance component required to achieve our strategy on schedule.

"We are at a highly exciting time in PPG's development and are delighted to have received this significant support for our topical business model. Advancing our funding and planning strategies is our main priority and with this in mind, we anticipate providing regular updates with regards to asset finance and planning going forward."

**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.

About Rockpool

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.