RAME.L Regulatory News (RAME)

Rame Energy / Index: AIM / Epic: RAME / ISIN: JE00BBD8GG53 / Sector: Energy

5 September 2014

Rame Energy plc ("Rame" or the "Company")

Secures Loan for £300,000

Rame Energy plc, the international energy consultant, engineer and power generator, is pleased to announce that it has received an unsecured loan of £300,000 (the "Loan") from existing shareholder Amati Global Investors Limited, acting as manager on behalf of Amati VCT plc and Amati VCT2 plc (the "Amati VCTs"). The Loan follows the successful placing of £750,000 announced on 28 August 2014 and completes the funding package that will be used to expedite the development of the Company's next four wind projects totalling up to 118 MW under the terms of the framework agreement with Santander Investment Chile Limitada ("Santander") announced on 16 June 2014.

Details of the Loan

The Loan is for a principal amount of £300,000 ("Par") for a term of five years during which it will be redeemable by the Company at any time. For the first 12 months the interest rate on the Loan is 8% p.a., payable quarterly in arrears and after 12 months the interest rate shall rise to 25% p.a., payable quarterly in arrears. If the Loan is redeemed within six months of issue, the Company shall pay 104% of Par; if the Loan is redeemed between 6 and 12 months from issue the Company shall redeem the Loan by payment of 106% of Par and if the Loan is redeemed after 12 months from issue the Company shall redeem the Loan by payment of 200% of Par, together with any accrued interest.

In addition, the Company has issued the Amati VCTs with warrants exercisable for a period of three years to subscribe for a total of 1,666,667 shares at 18p per share.

Jan J. Gawel, CFO, commented, "We are very pleased to have concluded the financing to accelerate the due diligence required under the terms of the Santander framework agreement to develop a further 118MW of wind assets with assistance from Amati, an existing and supportive shareholder. This loan is intended as a short term bridge to allow Rame to bring forward the point at which Santander buys-in to the project while giving us the financial flexibility to advance other opportunities such as our off-grid wind development at the Cerro Bayo mine. We look forward to updating the market in due course as we continue to progress our portfolio of Chilean wind projects."

**ENDS**

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About Rame

Rame is an established revenue generative global supplier of cost effective, technically optimised and reliable power generation solutions including wind, solar and diesel to blue chip clients such as Akzo Nobel, Anglo American, Barrick Gold and Codelco. The Company has executed its first joint venture agreement with Santander Investment Chile Limitada to co-finance its first two wind projects totalling 15 MW, in which Rame has a 20% equity participation. The debt package for the two projects is being provided by Chilean bank, Banco BICE.

Rame aims to become a niche Independent Power Producer ("IPP") targeting an operational portfolio of 300MW in Latin America within three years. The Company plans to build on its proven track record of delivering power in South America where it has been involved in the development of approximately 23% of Chile's installed wind power capacity (as at 31 December 2013).

About Amati

Amati Global Investors is a specialist investment management business based in Edinburgh, and focused on investment in small and mid-sized companies in the UK. Amati manages the TB Amati UK Smaller Companies Fund, an open-ended fund which invests in companies valued at up to £2bn which are quoted in London. Amati also manages two Venture Capital Trusts - Amati VCT and Amati VCT 2 - which are primarily focused on companies quoted on AIM, but also makes some investments in private companies where the managers believe that either an AIM flotation or a trade sale will occur within 24 months.