RUR.L Regulatory News (RUR)

17 June 2010

Rurelec PLC

("Rurelec" or "the Company")

Trading update

Rurelec PLC (AIM: RUR), the developer, owner and operator of power generation capacity in Latin America, announces that it has been invited by the Government of Bolivia to commence formal negotiations in La Paz with the relevant Ministers with regard to compensation for the controlling stake in Empresa Electrica Guaracachi SA ("Guaracachi") which was nationalised on 1st May 2010. Rurelec hopes that these negotiations will result in an agreed compensation that reflects its rights under international law prior to the date when it may commence formal international arbitration proceedings.

No further announcements regarding the status of these negotiations are anticipated until agreement has been reached or arbitration commenced.

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