RAME.L Regulatory News (RAME)

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27 October 2014

Rame Energy / Index: Aim / Epic: Rame / ISIN: JE00BBD8GG53 / Sector: Energy

Rame Energy Plc ("Rame" or the '"Company")

Operational Update: Construction of Raki / Huajache Wind Farm Project Continues to Make Good Progress

Rame Energy Plc, the international power generator and engineering company, is pleased to announce an update on the construction of its fully funded 15MW Raki / Huajache Project ("the Project"), the Company's first equity participation in wind assets in Chile. This update is in line with Rame's strategy to become a niche independent power producer ('IPP'). Raki and Huajache are the first two of six wind farms with a combined capacity of 133MW currently under development by the Company's On-Grid Power Generation division.

A number of significant milestones have been achieved at the Project:

· Access roads, laydown areas and crane positions have been prepared

· Gravel piling beneath turbine foundations has been completed

· The first turbine foundation comprising of over 1,300 tonnes of concrete and 50 tonnes of steel reinforcement has been completed with the second foundation ready to be cast and work progressing well on the remaining three

· The trenches for inter array electrical cabling between the wind turbine generators have been completed

· The cabling between the onsite substation and the overhead export line has been completed

· Substation ground works have been completed and above ground works are underway

· All turbine components including blades, hubs, nacelles and tower sections have been delivered to Puerto Coronel and Puerto Liquen for final transportation to and assembly at the site

The completion stages of the Project; the erection and commissioning of the turbines, are due to start at the beginning of December 2014. Following commissioning of the Project, the power will be sold to EKA Chile S.A, a joint venture between AkZoNobel and Celulosa Arauco y Constitucion S.A for a period of 10 years. The Project's equity was funded under a joint venture with Santander, in which Rame has a 20% equity participation, and the debt has been provided by Chilean bank Banco BICE.

CEO Tim Adams said "Completing power projects on time and budget involves effective, proactive management and strong alignment between the project stakeholders and the contractors and suppliers performing the works. Rame is playing a critical role in this process and the successful achievement of the key stages of the Project outlined above is testament to the effectiveness of our project team and the strong working relationships we enjoy with our partners. With turbine erection now clearly in sight, we look forward to reporting on the completion phases of these first projects."

**ENDS**

For further information, please call one of the contacts below or visit the Company's website, www.rame-energy.com.