Mytrah Energy Ltd : USD17.5m Mezzanine Financing & Operations Update

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN

30 August 2013

Mytrah Energy Limited

("Mytrah Energy"or the "Company")

Further US$ 17.5m Mezzanine Financing and

Operational Update

Non-dilutive Mezzanine Financing and Related-Party Transaction

The Company is pleased to announce that its wholly owned Indian subsidiary, Mytrah Energy India Limited ("MIEL"), has raised Rs. 1,200m (US$ 17.5m) by way of a mezzanine financing (the "Mezzanine Financing").  The Mezzanine Financing is non-dilutive for equity holders, unsecured and in the form of Series B Preference Shares in MEIL ("Preference Shares").  This Mezzanine Financingwill be subscribed for by Bindu Urja Infrastructure Limited and Mytrah Wind Developers Private Limited, companies owned by the Bindu Trust a Jersey based discretionary trust settled by Ravi Kailas, Chairman and CEO of Mytrah Energy.  The Preference Shares will be subscribed for at a par value of Rs. 300 per share, will carry a nominal dividend of 0.01% per annum and are redeemable at par on the 20th anniversary of their issue.

The Mezzanine Financing is a related party transaction pursuant to Rule 13 of the AIM Rules for Companies and the independent directors, being all the members of the Board with the exception of Mr Kailas, having consulted with the Company's nominated adviser, Strand Hanson Limited, consider that the terms of the Mezzanine Financing are fair and reasonable insofar as the Company's shareholders are concerned.

Operational Update

The Company expects to announce, in the near future, its first orders for delivery of new capacity in 2014.  The additional financing announced today, along with strong internally generated cash flows and the continued support of its banks, will allow for the continued rapid expansion of Mytrah's portfolio, which currently stands at 309.9 MW, with a further 238.2 MW under the final stages of development and on track for completion in Q4 2013.  The Company expects to have operational assets of 1,500 MW during 2015.

As announced on 1 August 2013, construction at Mytrah's three sites currently under final development, being Burgula (37.4 MW), Savalsang (100.3 MW) and Vagarai (100.5 MW), is proceeding in line with expectations.Across the three sites a large number of turbines have now been erected and with the completion of the balance of plant works, these will begin to be connected to the grid on a rolling basis.  Erection of the additional turbines is continuing daily and the Company is very pleased with the progress being made which, when completed, will increase Mytrah's installed capacity to a total of 548.1 MW of operational assets.

Impact of Weakening Rupee

The Directors would like to re-iterate that all of the Company's debt and mezzanine finance, capital costs, expenses and revenues are Rupee denominated and are therefore matched.  The recent depreciation in the Rupee has therefore not resulted in an increase in Mytrah's operational costs, principally interest on debt.  Indeed in US$ terms, total debt and interest costs have decreased by approximately 26% in line with the exchange rate movements in recent months from Rs. 53 to Rs. 67 to the US$.

Ravi Kailas, Mytrah Energy's Chairman and Chief Executive Officer, commented:

"I am pleased to announce the injection of US$ 17.5m in non-dilutive mezzanine financing from our sponsor group companies. This reaffirms the sponsor group's commitment to the interests of all shareholders of the Company and of minority shareholders in particular.  238.2MW of new projects are on track to become operational later this year, which will result in a near doubling of our installed capacity to 548.1MW.  We expect to build substantially on this total in 2014 and beyond, and I look forward to providing further details on the projects under development.

I am happy with the choices we made to keep all our debt and mezzanine financing, capital expenditure and other costs in Rupees to match the currency of our revenues, thus removing the direct effect of exchange rate fluctuations on operations."

For further information please visit www.mytrah.com or contact:

Mytrah Energy Limited

Ravi Kailas / Alastair Cade                                              +44 (0)20 3402 5790

Strand Hanson Limited

James Harris / Richard Tulloch / Angela Hallett                 +44 (0)20 7409 3494

Investec Bank plc

Chris Sim / Jeremy Ellis                                                 +44 (0)20 7597 5970

Mirabaud Securities LLP

Peter Krens / Rory Scott                                                +44 (0)20 7878 3360

St Brides Media & Finance Limited

Elisabeth Cowell / Frank Buhagiar                                   +44 (0)20 7236 1177