EAM Solar

Regulatory Filings • Jun 18, 2014

EAM Solar ASA: Proposed regulatory change in Italy and P31 closing

EAM Solar ASA: Proposed regulatory change in Italy and P31 closing

EAM: Proposed regulatory change in Italy and P31 closing

18(th) of June 2014

Today the Italian Government has announced that they expect to propose to the

Italian Parliament changes to the regulatory and financial regime of the

electricity sector in Italy. The purpose is to reduce the overall electricity

bill for households and small business by 10%, equivalent to approximately EUR

3bn.

As part of the measures proposed to achieve such a reduction, the Government of

Italy proposes measures that will affect the revenues received by solar PV power

plants through the FIT contracts with GSE. The proposed measures are either

through a reduction in the annual FIT revenues ranging from 17% to 25% depending

on the remaining contract lifetime and a 4-year prolongment of the contract

period, or through a voluntary 10% annual reduction in the FIT. The Governments

proposal may be officially proposed to the Parliament during the next couple of

weeks.

EAM Solar ASA is in the process of closing the acquisition of the P31 portfolio

and expects to do so within short. EAM has been aware of the Governments

possible proposal to changes in the Italian power tariff regime, and has taken

such change into consideration in the ongoing valuation negotiations of the

final purchase agreement. Consequently, a FIT change should not affect the

expected capital return from the acquisition.

Reference is made to previous Stock Exchange releases, financial reports for the

fourth quarter 2013, first quarter 2014 and prospectus issued in conjunction

with the private placement.

Overall EAM Solar consider the possible tariff changes to contribute positively

to the solar power plant transaction market and open further strategic

opportunities in Italy. EAM Solar currently evaluates several opportunities that

may represent further step changes for the company.

The regulatory changes will have a limited effect for the existing power plants

in the EAM portfolio due to their financial structure.

For information, please contact:

Viktor E Jakobsen, Executive Director, phone +47 9161 1006, viktor@eamsolar.no

Audun W. Iversen, CEO, phone +47 916 16 250, audun@eamsolar.no

About EAM Solar:

EAM Solar ASA is a utility company that acquires and operates solar power

plants. The Company currently owns solar PV power plants in Italy, acquired

during in 2011/12. The plants are operating under long-term sales contracts. EAM

Solar acquires power plants that are commissioned, connected to the grid and in

power production at the time of financial close with the geographical focus on

Europe.

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1795478]