Rurelec Regulatory News (RUR)

Rurelec PLC

("Rurelec" or the "Company")

Update regarding Energia del Sur, S.A.

Further to the announcement of 8 September 2017 The Directors of Rurelec (AIM:RUR), have been informed that the management of Energia del Sur S.A., which owns and operates the 136 MW Southern Patagonian CCGT power plant in Argentina have begun a temporary modification of the steam turbine to remove certain rows of turbine blades ahead of repairs during planned maintenance in 2018.

If successful, this will allow the power station's gas and steam turbines to resume operation within approximately two weeks, albeit with a reduced power output on the steam turbine. Such output reduction will only be known with certainty on resumption of operations but is expected to be no more than 30% reduction in the steam turbine output. The modification will allow the plant to continue to run in a combined cycle configuration. EdS management is confident this solution will work but in the unlikely event that it does not, EdS has also begun constructing exhaust stacks, as a contingency measure, to allow the power station to run in open cycle in the short term using just gas turbines, at a maximum net output of 74MW.

The Directors anticipate that the interruption will have a short term adverse effect on cash generation within EdS and thus debt repayments to RPFL will put more of a strain on EdS in the short term than previously expected. The Directors cannot precisely quantify the effect on Rurelec until the problem has been successfully resolved.

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The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.