17 February 2012 GB00B0MH9D42/GBP/PLUS-exn CAP ENERGY LIMITED ("CAP" or the "Company") Proposed Recapitalisation of the Company On 18 August 2011, the Directors requested that trading in the Company's ordinary shares be suspended pending clarification of the Company's financial position. At that time, CAP also reported that it was holding discussions with parties which may or may not lead to a transaction involving the Company. CAP announces that it has today signed Heads of Agreement with investors who have indicated their intention to inject new capital into the Company and to change its strategic direction (the "Proposals"). The Proposals, which will require, amongst other things, the approval of shareholders and the holders of 8% Convertible Unsecured Loan Notes 2012 of the Company, will result in the unwinding of CAP's relationships with CSV Holdings, Inc. and the re-classification of CAP as an Investment Vehicle for the purposes of the PLUS Rules for Issuers. PLUS Stock Exchange plc has agreed to extend the suspension in trading of the Company's ordinary shares pending completion of the Proposals. A further announcement will be made as and when appropriate. The Directors of Cap are responsible for the contents of this announcement. Contact details: Cap Energy Limited John Killer, Managing Director Tel: 07979 903673 St Helens Capital Partners LLP Duncan Vasey or Mark Anwyl Tel: 020 7368 6959 

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