Ancillary Services Contract

1 April 2016

Drax Group plc

("Drax" or the "Company"; Symbol:DRX)

Ancillary Services Contract

Following a competitive tender process Drax has agreed terms with National Grid for a twelve month contract to provide certain ancillary services, commencing in April 2016.

Taking into account current estimates of the revenue and costs associated with this contract, as well as the recent weakness in commodity markets, Drax now expects 2016 EBITDA(1) to be towards the top end of the range of current market forecasts(2).

Dorothy Thompson, Chief Executive Officer of Drax, said:

"We are pleased to have agreed this contract with National Grid. At a time when many power stations are closing, this contract recognises the supportive role Drax continues to play in providing secure and dependable electricity to the UK."

Enquiries:

Drax Investor Relations: Mark Strafford

+44 (0) 1757 612 491

Media:

Drax External Communications: Andrew Brown

+44 (0) 7721 513 777

Website: www.drax.com

Note:

(1) EBITDA is defined as profit before interest, tax, depreciation, amortisation and unrealised gains/losses on derivative contracts.

(2) Based on a range of market forecasts for EBITDA, published since our preliminary results announcement on 23 February, of £132 million to £161 million.

These forecasts generally assume a Contract for Difference (CfD) Investment Contract for Drax's third unit conversion with a strike price of £100/MWh (2012 real terms) by July 2016. The Investment Contract remains subject to approval by the European Commission.

END