Velcan Holdings

Regulatory Filings • Apr 17, 2014

Press Release

31 May 2007, Bhubaneswar

Velcan Energy: First significant hydropower concession in India. 30-year 50-MW concession in Orissa State.

Velcan Energy announces the grant of the Baitarani 1 & 2 concession totalling 50 MWs.

Velcan Energy was granted two 30-year 25-MW hydropower concessions through two of its wholly-owned subsidiaries on 30 May 2007.

Baitarani

The Baitarani project consists of two dams, Bhimkund (25 MWs) and Tarini (25 MWs), within five kilometres of each other on the same river in Orissa State 130 kilometres from the State's capital Bhubaneswar. The two sites will be managed as a single project.

The project must now get all the environmental and administrative authorisations required for start-up of the construction phase. This administrative phase should last approximately two years:

• Start of construction: second quarter of 2009
• Generation start-up: last quarter of 2011
• Locations of the sites: 21º31'38.15"N, 86º0'23.95"E (Tarini), 21º29'14.93"N, 86º1'46.23"E (Bhimkund)
• Estimated power generated: 200,000 MWh per annum
• Estimated carbon credit generation: 210,000 CERs per annum

Total financial performance expected of Baitarani 1 & 2

K Euros	2011	2012	2013	2014
Turnover	3 898	15 963	16 343	16 735
ebitda	3 390	13 882	14 158	14 441
%	87%	87%	87%	86%
Net Income	1 528	6 415	6 862	7 337
%	39%	40%	42%	44%

View of the Baitarani River at the project site

Antoine Decitre, Velcan Energy's managing director, says: "We are very happy with this first fine concession in India. Although much remains to be done, this proves that our hydropower development team in India is now operational. This team should enable us to announce several contracts of that size before the end of the year. It fits in with our strategy which, now that we are now firmly established, is to concentrate on larger, 50 to 100 MW sites in order to attain our new objective of 1000 MWs of hydropower concessions in India.

"The context of our growth in India is as favourable as ever. The free market price of electricity is still on an uptrend, as is the carbon credit price."

Velcan Energy's portfolio in stages of progress:

	Projects under study	Concessions	Plants
Capacity	1,100 MWs	174 MWs1	15 MWs2
Year of start-up	Yet to be defined	2009-2011	2006

174 MWs of hydropower in Brazil, 45 MWs of biomass power and 55 MWs of hydropower in India. 2Two biomass plants in India.

Velcan Energy is an independent renewable electricity producer, using biomass combustion technologies and hydroelectric power plants. Velcan Energy has two sources of revenue: sale of electricity and sale of carbon credits.

Velcan Energy operates in Brazil through its subsidiary Velcan Desenvolvimento Energético do Brasil Ltda and in India through its subsidiary Velcan Renewable Energy Pvt Ltd.

Velcan Energy is listed on the Paris Stock Market (Euronext, MLVEL) and is a member of the Paris carbon credit exchange, Powernext Carbon.

Shareholders:
	Financière Saint Merri SA (reference shareholder Crédit Agricole)
	Private investment funds in France and UK
Sites:
	France: Paris (Velcan Energy SA)
	India: Bangalore (Velcan Renewable Energy Pvt Ltd)
	Brazil: Sao Paulo (Velcan Desenvolvimento Energético do Brasil Ltda)
	United Arab Emirates : Dubaï (Velcan Energy Holdings Dubaï Ltd)

Average payroll employees: 150

Contact details

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Velcan Energy Antoine Decitre Managing Director +33 (0)1 42 68 51 08

Velcan Energy

75 bd Haussmann, 75008 Paris, France – www.velcan.fr

Velcan Energy is an independent green electricity producer. Velcan Energy is listed on the Euronext Paris stock market (code MLVEL).

Disclaimer

This press release contains prospective information about the potential of the projects in progress and/or of the projects of which the development has begun during the financial closing ended the 31st December 2007. These information constitute objectives attached to projects and shall, in any case, not be construed as direct or indirect net income forecast of the concerned year. Reader's attention is also drawn on the fact that the performance of these objectives depends on future circumstances and that it could be affected and/or delayed by risks, known or unknown, uncertainties, and various factors of any nature, notably related to economic, commercial or regulatory conjuncture, which occurrence could be likely to have a negative impact on future activity and performances of the Group.

This announcement does not constitute a public offering (appel public à l'épargne) nor an invitation to the public or to any qualified investor in connection with any offering. This announcement is not an offer of securities in the United States or in any other jurisdiction/country.