React Energy : 8th June 2015Further re Corporate Update

("REACT" or the "Company")

Further to the announcements of 20 May 2015 and 3 June 2015, the Company announces that in line with his statutory duty, the Examiner appointed to REACT (and its related companies) continues to conduct a review of the Company's affairs and has formulated proposals for a scheme of arrangement (the "Scheme") which will be presented at meetings of the Company's shareholders and creditors and, it is expected, for the subsequent approval of the High Court in Ireland.
To this end shareholders and creditors have been notified of meetings to be held at various times on Wednesday 10 June 2015 at the Cork International Hotel, Cork, Ireland.
The Company also announces that it has signed a conditional facility letter with a third party investor for up to £900,000 (the "Loan Facility"), the drawdown of which is subject to certain conditions precedent being met under the Loan Facility, the Scheme being approved by shareholders and creditors and ultimately High Court approval of the Scheme.

The Loan Facility comprises a five year term loan of £900,000 at 15% per annum fixed rate of interest, payable quarterly in arrears. The net proceeds of the loan will be utilised for corporate development and general working capital purposes. The Loan Facility is to be repaid by way of a bullet repayment of capital (and any accrued interest) on before the anniversary of 60 months from the date of drawdown of the Facility.
An exercisable right is attached to the Loan Facility whereby 60 days from the drawdown of the loan the investor has the right to an amount of fully paid new ordinary shares in the Company. The monetary value of the exercisable right will be determined by the following formula:
9 million x (Average Share Price minus 10p), where the Average Share Price is the arithmetic average of the Company's closing share price on each of the 60 days following re-commencement of trading in the Company's shares. The value of this right has a cap of £600,000 and a floor of £200,000.
In addition, 35,300,000 warrants are to be granted to a company related to the investor on drawdown of the Loan Note Facility, subject to any necessary shareholder and other regulatory requirements. These warrants will entitle the holders to subscribe for new ordinary shares in the capital of REACT at an exercise price of 10p per share. The warrants are assignable and capable of being exercised for a period of seven years from the date on which the loan facility is drawn down.
Further updates will be provided in due course.

REACT Energy plc is committed to operating clean electricity and heat generation plants in the UK and Ireland.
The Company identifies, builds owns and operates plants and possesses significant knowledge of energy markets, clean technologies, fuel sources, project development, project finance and project delivery.
REACT currently has four operational clean energy plants generating revenue from the sale of electricity and heat.
The generation of clean electricity and heat from sustainable sources has the potential to address the key energy challenges of energy security and carbon commitment and provide strong returns on capital employed.
The company is listed on AIM and trades as REAC.www.reactenergyplc.com

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