Realisation Update

Trading Emissions PLC

("TEP" or the "Company")

Realisation Update

The Board is pleased to provide an update on progress with the implementation of the Company's investment realisation strategies.

Carbon Portfolio

As the Company stated in its announcement on 30 March 2012, the Beijing office of the Investment Adviser has been renegotiating the Emission Reduction Purchase Agreements ("ERPAs") in order to reduce TEP's losses and liabilities arising from commitments to purchase Certified Emission Reduction certificates ("CERs") at fixed prices, which remain above prevailing market prices. During the period to 30 June 2012, eight out of 44 ERPAs have been renegotiated with project owners in China, including large hydropower projects and waste heat recovery projects. 16 project owners have, to date, declined to commence renegotiations.

The renegotiated ERPAs are structured such that TEP will pay a percentage of the prevailing CER spot price on the date of delivery, rather than a fixed price, to the project owner. Therefore, with respect to each renegotiated ERPA, TEP will earn a commission on each CER sold on a timely basis and consequently an asset will be recorded for that ERPA on the Company's Statement of Financial Position. The new commission arrangements under the renegotiated ERPAs generally relate to both pre-2012 and post-2012 CER deliveries. Where the Company's original option to acquire CERs post-2012 are at fixed prices and project owners have not yet agreed to commission arrangements, the option would only be exercised by TEP if the prevailing market price of CERs is higher than the contractual fixed prices. As market risk is significantly reduced under the renegotiated ERPAs, CER price volatility will gradually have a lower impact on the value of TEP's carbon portfolio as further ERPAs are renegotiated.

The Company has continued its hedging activity during 2012 and, at 30 June 2012, had hedges in place relating to 4.3 million CERs compared with 750,000 CERs at 31 December 2011.

In tandem with the ERPA renegotiation process, strategies to realise value for shareholders from the carbon portfolio are being pursued.

Private Equity Portfolio

The Board and the Investment Adviser continue to pursue realisation strategies with regard to each of the Company's private equity investments. The holdings in Environmental Credit Corp (ECC) and Electricidad Andina were disposed of during the six month period to 30 June 2012, generating proceeds of approximately £0.2 million and future conditional receivables of approximately £6.3 million compared with a valuation at 31 December 2011 of £0.3 million.

In addition, the Company has received conditional offers for the investments in Asia Biogas, Carbon Capital Markets and Surya/ TEP Solar. The Company has also made significant progress in relation to the realisation of the investments in Bionasa, EWG Slupsk, Element Markets, Chapel Street, and Energia Escalona. These offers and negotiations may or may not lead to final agreement on terms which are acceptable to the Company. Shareholders will be updated with material developments in due course.

If all of the realisations of private equity assets currently under negotiation complete successfully, the aggregate proceeds will be consistent with the independent valuation report commissioned by the Board, which formed the basis for the valuation of the private equity portfolio included in the Company's Consolidated Interim Financial Statements for the period ended 31 December 2011.

Cash Position

At 30 June 2012, the Company's cash position was £60.2 million, of which £43.9 million is unrestricted.

For further information please contact:

IOMA Fund & Investment Management

Philip Scales +44 (0)1624 681250

Liberum Capital

Steve Pearce / Tom Fyson +44 (0)20 3100 2222