Trading Emissions PLC Regulatory News (TRE)

9th December 2011

Trading Emissions Plc

Statement re share price movement

The Board of Trading Emissions Plc ("Trading Emissions" or "the Company"), notes the recent material fall in the share price of the Company, and the price of carbon related securities, and wishes to provide the market with updated information on the Company's cash position and prevailing asset values.The last Group consolidated audited NAV per share as at 30 June 2011 was 121.08 pence. Adjusting for cash movements at the Company level and valuing the carbon portfolio as at 6 December 2011 reduces the Group NAV per share to approximately 76.7 pence (unaudited).This adjusted Group NAV comprises the following:

·; Private equity portfolio as at 30 June 2011 of approximately £149.9m or 60.0 pence per share (unaudited, including portfolio company year end valuations and cash balances)

·; Carbon portfolio of £(16.0m) or (6.4) pence per share (unaudited) based on carbon prices as at 6 December 2011  

·; Company cash balances as at 6 December 2011 of £50.2m or 20.1 pence per share (unaudited, including restricted cash of £21.5m)

·; Hedging: Cash value as at 6 December 2011 of £15.2m or 6.1 pence per share (unaudited)

·; Other liabilities as at 30 June 2011 of £7.7m or 3.1 pence per share (unaudited)

The Investment Adviser to the Company estimates that the unhedged exposure to carbon obligations is c.13.5m tonnes of pre Dec 2012 delivery CERs, with a maximum theoretical liability to the Company of £77.3m in the unlikely event that the price of carbon was to fall to zero. The Company is not contractually obliged to purchase post Dec 2012 CERs.In addition to the cash balances described above the Company is also due to receive repayment of a loan of €17.7m from a portfolio company in early 2012. The Company therefore has sufficient cash resources to meet its current obligations and as previously announced the Board is overseeing the orderly realisation of the assets of the Company in line with its investment policy and will update shareholders in due courseThe Company was also notified on 8 December 2011 that, on 7 December 2011, Simon Shaw of EEA Fund Management Limited (Investment Adviser to the Company) purchased 250,000 shares in the Company at a price of 26.5 pence each.

--ENDS--

For further information:

Notes to editors

Trading Emissions PLC's main investment objective is to make capital profits from purchasing emissions assets at appropriate prices. The core part of its portfolio is a long position in carbon assets, although some trading does take place. The Company also invests in other selected emissions assets. In addition, the Company generates income from the provision of finance for selected programmes such as aggregation, monetisation, collateralisation and other innovative approaches to carbon trading markets.

www.tradingemissionsplc.com