Increase in Working Capital Loan

26 April 2013

IPSA Group PLC

("IPSA" or the "Company")

Increase in Working Capital Loan

IPSA Group PLC (AIM:IPSA), the developer, owner and operator of power generation capacity in southern Africa, advises shareholders that the Company has secured an amendment to its short term loan with Bluestone Securities Limited to allow the drawdown of up to £750,000 in additional funds, thereby increasing the total loan to £4,950,000.

There are no other changes to the financing terms, such that the loan is due for repayment on 26 June 2013, unless extended by mutual agreement or earlier, inter alia, upon sale of the Company's remaining two turbines.

The funds will be used to provide additional working capital for the Company and for maintenance of the turbines at Newcastle Co-generation (Pty) Ltd. However, the Company confirms that this additional injection of funds does not materially change the Company's overall working capital position, which remains extremely tight and that, without the continued support of all its creditors, additional working capital would be required by the Company in order to settle all its creditors prior to completion of the sale of the remaining two turbines.

Negotiations to sell the remaining turbines are ongoing and a further announcement will be made as and when appropriate.

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