RUR.L Regulatory News (RUR)

19 April 2010

Rurelec PLC

("Rurelec" or "the Company")

Important Developments

Rurelec (AIM:RUR) is pleased to announce a number of important developments in Argentina and Bolivia which are material to its overall plan to return to the development path interrupted by the 2008 debt crisis.

In Bolivia, Rurelec's 50.01 per cent subsidiary, Empresa Guaracachi, has received the approval from the United Nations UNFCCC for the registration of carbon emission reductions (CERs) from the 96 MW combined cycle expansion project. The project has achieved mechanical completion and is now in the commissioning phase. The UN has agreed to register 335,000 CERs a year for the project subject to receiving certain corrections. These corrections have now been submitted. As announced three weeks ago, Guaracachi has entered into contracts with the Andean Development Corporation (CAF) and the KfW development arm of the German government to sell these CERs for the life of the Kyoto Treaty generating up approximately US$5m per annum of additional income depending on the number of CERs actually generated and the prevailing exchange rate when funds are received.

Under the contract, CAF has agreed to make a pre-payment of approximately US$5 million upon successful registration at the UN. Rurelec expects these funds to be received shortly at which time Guaracachi is expected to make a partial dividend payment. Rurelec will receive 50.01 per cent. of all dividends paid. In 2009 and 2010 to date, Guaracachi has declared US $11.5 million of gross dividend payments in aggregate of which Rurelec's net receipts upon payment will be around US $5 million.

Historically, Rurelec has used its dividend payments from Guaracachi to pay its own dividends to Rurelec shareholders. Rurelec therefore expects to resume paying dividends during 2010 when funds are received from Guaracachi and as soon as the Board considers it prudent to do so.

In Argentina, Rurelec's 136 MW Energia del Sur (EdS) combined cycle plant in Comodoro Rivadavia has received initial governmental approvals to execute a new power purchase agreement with CAMMESA under Resolution SE No 220/2007. The Resolution 220 contract will allow EdS to receive the maximum electricity tariff allowed under Argentine Law.

On the basis of the new contract and an anticipated Moody's rating, EdS now expects to complete a refinancing issue of bonds in the coming weeks. EdS also expects to receive a refund from the government of Argentina of US $2.5 million of "Inciso C" by the end of June.

For further information, please contact:

Company:

Peter Earl, Managing Director,

Rurelec PLC Tel: +44 (0)20 7793 5610

Nominated Adviser:

Paul Shackleton /Tessa Smith,

Daniel Stewart & Company PLC Tel: +44 (0)20 7776 6550

Brokers:

Daniel Briggs,

Religare Capital Markets PLC Tel: +44 (0)20 7382 7776

Richard Swindells / Andrew Craig,

Ambrian Partners Limited Tel: +44 (0)20 7634 4700

Financial PR:

Ana Ribeiro / Tim Blythe,

Blythe Weigh Communications Ltd Tel: +44 (0)20 7138 3206