Revised Investment Policy

ECOFIN WATER & POWER OPPORTUNITIES PLC

Revised Investment Policy

Ecofin Water & Power Opportunities plc (the 'Company') announces that, as is indicated in the Chairman's Statement in the Company's Half-year report released on 31 May 2013, a number of changes have been made to the Company's investment policy, and the investment objective and policy are now as follows:

Investment objectives and policy

The Company's investment objectives are to achieve a high, secure dividend yield on its investment portfolio and to realise long-term growth in the capital value of the portfolio for the benefit of shareholders, while taking care to preserve shareholders' capital.

The Company's assets are primarily invested in the equity and equity-related securities of utility and utility-related companies, although the Company may invest up to 15% of its gross assets as at the date of the investment in the debt instruments of such companies and may also hold significant cash or cash-equivalent positions from time to time. For purposes of investment, utility companies are those involved in the generation, transmission, distribution and supply of electric power; the abstraction, treatment and distribution of water; the treatment of waste water and waste; the distribution of natural gas; and the transmission of energy. Utility-related companies are those that supply equipment, technology, fuel or services to utility companies or which enjoy natural monopolies in the provision of essential infrastructure services.

While the Directors expect that the Company's investments will principally be in companies listed on recognised stock exchanges in the United Kingdom, Continental Europe, the United States, Canada and other OECD countries, the Company may invest up to 20% of its gross assets, at the time of acquisition, in the securities of companies quoted on recognised stock exchanges in non-OECD countries. The Company may also invest in the equity and equity-related securities and debt instruments of unquoted companies provided that the aggregate value of all such investments (excluding debt instruments of companies the equity of which is listed or quoted on a recognised stock exchange) held by the Company immediately following the investment does not exceed 20% of the Company's gross assets at that time. For the purpose of this limit, the investment in Lonestar Resources Limited will be treated as an unquoted investment. Any investment in unquoted equity or equity-related securities or unquoted debt instruments of an entity the equity of which is not listed or quoted on a recognised stock exchange will require the prior approval of the Directors.

The Company may invest up to 15% of its gross assets in collective investment vehicles, including UK investment companies and other closed-ended investment funds. No new investments will be made in such vehicles managed by the Investment Manager or its affiliates. The Company will not pay investment management fees or performance fees to the Investment Manager in respect of existing investments in collective investment vehicles managed by the Investment Manager or its affiliates.

The Company takes advantage of the highly fragmented nature of the global utilities sector - in which most companies are local, regional or national, but not global, companies - to invest in a portfolio diversified with respect to country, sub-sector of the global utilities sector, company size and regulatory regime. The total of investments in the United States will not exceed 60% of the Company's gross assets, though this limit may, with the approval of the Directors, be increased to up to 70% of the Company's gross assets. The limit for all other countries will be 40% of the Company's gross assets, although it is highly unlikely this limit will be approached. No single investment by the Company will exceed 15% of the Company's gross assets at the time of the most recent acquisition of shares or other securities in such an investment.

The Company employs substantial levels of gearing to enable the Company to earn a high level of dividend income and to offer the Company's Ordinary Shareholders a geared return on their investment. The Directors believe that the use of gearing is justified given the nature of most of the companies in which the Company invests; that is, utility companies which provide essential services, operate in regulated markets, have relatively low levels of business risk and pay dividends. The level of gearing utilised and the nature and term of any borrowings are the responsibility of the Directors. They have authorised the Investment Manager to maintain gearing (the Company's Prime Brokerage borrowings, the nominal value of the Company's Convertible Unsecured Subordinated Loan Stock and the accrued entitlement of the Group's Zero Dividend Preference Shares, less cash, divided by the Company's net assets) of up to 60%.

The Company's accounts are maintained in sterling. Many of the Company's investments are denominated and quoted in currencies other than sterling, and although the Company does not hedge all such investments back into sterling it may pursue an active hedging policy against fluctuations in exchange rates from time to time, depending on market conditions. The Company's exposure to fluctuations in exchange rates will, to some extent, be mitigated by any borrowings in currencies other than sterling and any long-term currency hedges.

The Company may make use of derivative instruments, such as options, financial futures and contracts for difference, in pursuit of its investment objectives and for the management of risk within limits set by the Directors. It is the policy of the Company that the total exposure to such derivative instruments (excluding such instruments entered into for cash management purposes or to hedge the currency profile of the portfolio) will not exceed 20% of the Company's gross assets less current liabilities. The Company may also engage in short-selling of individual securities or of financial indices within limits set by the Directors. It is the policy of the Company that its total exposure to short positions will not exceed 30% of the Company's gross assets less current liabilities. Total exposure is the sum of the Company's investments, the absolute value of its short positions (if any) and, in the case of derivatives, the value of the underlying securities adjusted for volatility.

Phoenix Administration Services Limited - Corporate Secretary

14 June 2013