New Short Term Loan Facility

Rurelec PLC

("Rurelec" or the "Company")

New Short Term Loan Facility and repayment of Extended Facility

The Directors of Rurelec PLC (AIM: RUR), the owner, operator and developer of power generation capacity internationally, are pleased to announce that the Company has entered into, and fully drawn down, a short term loan facility with Bridge Properties (Arena Central) Limited ("BPAC") for an amount of £850,000 (the "Facility"). The repayment date for the Facility is 30 June 2016, with interest being charged at one per cent. per month, simple interest. BPAC is incorporated in the BVI and is wholly owned by Ballaugh Holdings Limited, which is in liquidation. Simon Morris, an Executive Director of Rurelec, is a director of Bridge Properties (Arena Central) Limited.

The proceeds are for working capital and for the repayment of the Radix Investments UK Limited ("Radix") loan and accrued interest, as notified on 30 October 2015. Radix has undertaken to release its debenture over all of Rurelec's assets in favour of BPAC.

The Loan is intended to allow the Board time to source further, long term funding. There can be no guarantee that long term funding will be available to the Company. Notwithstanding the Facility, the Company's cash position continues to be extremely tight. The Directors are exploring how best to arrange for the Company to benefit from the cash generated by the asset in Argentina in which it has a 50 per cent. interest.

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