RAME.L Regulatory News (RAME)

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

5 February 2015

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

Update on Raki / Huajache Wind Power Project, Chile

Rame Energy plc, the independent power producer, is pleased to provide the following operational update regarding its 15MW Raki / Huajache wind project in Chile.

Rame holds a 20% equity interest in the project alongside Santander Investment Chile Limitada. 

The landslide referred to in the Company's announcement on 16 December 2014 has now been cleared. As a result the transportation of the turbine components from the temporary storage facility at the port of Lirquen has now commenced and the first tower sections, nacelles and drive trains have arrived at the site. In addition, the main Liebherr LR1300 crawler crane has been assembled at turbine location 5, ready to commence the assembly process.

The transportation of the blades, which are stored at the port of Coronel, is scheduled to commence within 4 days once final police escort clearance is obtained. Following the road re-opening, a blade mock-up was transported along the delivery route to confirm there are no obstructions which could affect the delivery of the blades.

Once a blade set has arrived on site, assembly can commence and Rame anticipates that the project construction works will be completed within a period of six weeks, after which final testing of the wind farm as a whole can be concluded.

Photographs of the transportation process, assembly crane and components on site are now available on the Company's newly upgraded website and further pictures will be posted as the project progresses.

Tim Adams, CEO, commented: "The interruption caused by the landslide delaying transportation of turbine components to the site has presented a significant challenge to the expected timing of this project but we have taken all the steps necessary to minimise the impact. Through close cooperation with the local authorities and key subcontractors, the obstruction has been cleared and the necessary permissions are in place to undertake the complex logistical task of component delivery. This process is now well underway. The main installation crane is now ready to undertake the erection of the first turbine which means we are now entering the final phase of construction.

"Whilst the delay has been immensely frustrating for myself, the team and our stakeholders, I am pleased to report that the excellent progress we had been making prior to the landslide has now resumed. As soon as transportation of all components to site has been completed which remains subject to ongoing coordination with the Police, we will be able to give a definitive timetable for project completion. As we near the conclusion of this, our first project to be completed since our IPO and the first in conjunction with Santander, we are taking a considerable step in our development as an independent power producer".

**ENDS**

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Rame Energy is an experienced Independent Power Producer, providing on-grid and off-grid power solutions to industry by generating renewable energy: primarily wind and solar.

Blue chip clients include 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 is 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. To date, in Chile, Rame has been involved the evaluation and design of over 1GW of potential wind generation capacity, successfully permitted over 230MW and constructed over 50MW.