REH.L Regulatory News (REH)

3 September 2013

Renewable Energy Holdings PLC

("REH" or the "Company")

Extension of Convertible Loan Note with Utilico Investments Ltd

REH announces that its major shareholder, Utilico Investments Limited ("Utilico") (formely Utilico Limited), has agreed to extend the term of the £2.5 million secured convertible loan made available to the Company on 31 July 2009 (the "Convertible Loan"). The date of maturity of the Convertible Loan, which was previously extended to 31 July 2013, as announced on 28 September 2011, has now been extended to 30 September 2013.

All other terms for the Convertible Loan remain unchanged other than those that relate to its conversion into 8,264,463 ordinary shares of 1 pence each, the extension of which are subject to the approval of independent shareholders of the Company at a general meeting, in accordance with the Takeover Code. The Convertible Loan accrues interest at 10 per cent. per annum and a commitment fee of 5 per cent. per annum. It is principally secured over the entire issued share capital of Gamar GHL Limited Liability Company, the subsidiary of REH that owns the Kobylany wind farm project. The cumulative balance of the Convertible Loan at 31 July 2013 was approximately £3.5 million.

Utilico is interested in 28.71 per cent. of the issued share capital of the Company and therefore the amendments to the Convertible Loan are deemed to be a related party transaction in accordance with the AIM Rules for Companies. Accordingly, the directors of the Company (other than David Weir, who is a nominee of Utilico), having consulted with Strand Hanson Limited, the Company's nominated adviser, consider the amendments to the Utilico Loan to be fair and reasonable insofar as the Company's shareholders are concerned.

The board of REH intends to negotiate a longer term solution to this debt financing and further announcements will be made in due course.

-ENDS-

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