IPC Partnership with African Investment Management

12 April 2017

Tlou Energy Limited

("Tlou" or "the Company")

Tlou Notes IPC's Partnership with African Investment Management and Project Management Firms to Develop Power Assets in Sub-Saharan Africa


Tlou Energy Limited, the AIM and ASX listed company focused on delivering power in Botswana and southern Africa through the development of coal bed methane ("CBM"), is pleased to note the announcement made by its power development partner, Independent Power Corporation PLC, outlining its entry into a joint venture partnership, QG Power Africa, with QG Africa Mezzanine LP, a USD250 million investment vehicle which is part of the Quantum Global Group, and Tomé International Limited, project management consulting firm, to jointly develop power assets in sub-Saharan Africa.


Highlights:

Ø This has potential positive implications for the future funding of the proposed (up to) 100MW CBM to power project which is being jointly developed by IPC and Tlou (the "IPP Project"), which will be situated at Tlou's 100% owned Lesedi CBM Project in Botswana ('Lesedi')
Ø QG Power Africa plan to develop power assets across sub-Saharan Africa
Ø Botswana is outlined as part of the first phase of development and investment, where Tlou's IPP Project would be a potential investment opportunity for QG Power Africa

Tlou Managing Director, Tony Gilby said, "This joint venture, which includes significant investors in Africa, validates our decision to choose IPC as our power development partner for the IPP Project.  We are delighted to see that these experienced parties have identified the opportunities available to bring power to constrained energy environments in sub-Saharan Africa.  We look forward to working closely with IPC to develop our IPP Project in Botswana into commercial operation and to developing discussions with QG Power Africa on this as an investment opportunity for them."

As previously announced by the Company, Tlou received a request for proposal ('RFP') from the Botswanan Government to provide up to 100MW of CBM power from its Lesedi project.  IPC has been selected by Tlou to partner with the Company for submission of the RFP and development of the IPP Project.  IPC and its funding partners plan to facilitate the building and funding of the necessary power generation and network access assets, enabling Tlou to commercialise its gas resources.  Tlou maintains a 100% holding over the current and future gas reserves.

About Quantum Global Group

Quantum Global is an international group of companies active in the areas of private equity investments, investment management as well as macroeconomic research and econometric modelling.  Quantum Global's private equity arm manages a family of funds targeting direct investments in Africa in the sectors of Agriculture, Healthcare, Hotels, Infrastructure, Mining and Timber - as well as a sector agnostic Structured Equity fund. Quantum Global's team combines a solid track record and proven expertise to identify and execute unique investment opportunities with focus on Africa.  Quantum Global works in close partnership with key stakeholders to maximise investment value and returns through active management and value creation. For more information, visit www.quantumglobalgroup.com.

About Tomé International
Tomé International is an engineering consultancy dedicated to the Project Management of large-scale infrastructure projects in the sectors of Power, Petrochemical, Ports, Airports, Roads and Rails.  The team of multi-disciplinary experts work with an international network who provide local insights of African emerging market requirements and conditions, covering a range of industries and countries.  For more information visit www.tomeinternational.com.

About Independent Power Corporation PLC
Independent Power Corporation PLC develops and operates power plants for governments, large corporations and independent power producers. IPC has two decades of experience in the development, operation and ownership of power plants in Southern Africa, South America, the Middle East, Europe and Central Asia with roughly 4,000 MW operated, developed or owned. IPC's experience includes thermal and hydropower generation. For more information visit www.indpow.co.uk.

A copy of the press release issued by Quantum Global which provides further information on the joint venture and each of the participants is available on the Company's website:

http://tlouenergy.com/wp-content/uploads/2017/04/Press-Release-QGPA.pdf

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