Bangladesh Power Project

5 September 2011

Rurelec, notes the recent press article published by Bloomberg on 25 August 2011 concerning a possible power project in Bangladesh.  The article linked Rurelec to a 108 MW heavy fuel oil power plant to be developed in Chittagong.

The Company wishes to clarify that it has for some time been in active discussions with potential local partners in Bangladesh with a view to concluding an agreement for Rurelec to act as project sponsor, based on Rurelec's expertise and experience in power plant development following an open tender held by the Bangladesh Power Development Board ("BPDB").  Rurelec was previously pre-qualified by BPDB as a technical services provider and sponsor for the construction of a 400 MW combined cycle plant in Bangladesh based on the Company's two successful combined cycle projects in Latin America.

No firm agreement has been reached at this stage but BPDB has indicated publicly that it has chosen a Rurelec led group as a preferred developer.  Rurelec's primary focus of attention remains Latin America but it is the policy of the Rurelec Board to earn development and operations fees from power plants owned by third parties in order to derive revenues from the considerable knowledge base and operational capability built up over the last seven years.

A further announcement will be made concerning Chittagong if necessary and at the appropriate time.

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