Dividend Announcement

Premier Energy and Water Trust PLC (the “Company”)

Announcement of Dividend and Future Dividend Strategy

Premier Energy and Water Trust PLC announces a fourth interim dividend for the year ending 31 December 2015 of 4.75 pence per ordinary share of 1 pence each (“Ordinary Shares”) comprised of a base dividend of 4.00 pence, and an additional dividend of 0.75 pence per Ordinary Share. The additional dividend of 0.75 pence per Ordinary Share is the last of the additional dividends that are being paid pursuant to the policy announced on 1 August 2013 to reduce substantially the Company's revenue reserve.

The 4.00 pence per Ordinary Share base dividend is a reduction on the 4.70 pence fourth interim for 2014. The directors consider this reduction to be necessary because the Company did not receive a dividend in Q4 2015 from one of its investments, Renewable Energy Generation Limited (“REG”). A REG dividend had been budgeted for in December 2015, however, in October 2015, REG announced a sale of its principal assets, together with proposals to distribute the resulting capital to shareholders and to de-list its shares. This resulted in REG not declaring its usual December dividend.   The loss of the REG dividend has reduced revenue return per Ordinary Share by 0.61 pence as compared to what would otherwise have been expected.

Excluding the additional dividends, the total base dividend in respect of the year is 9.7 pence  per ordinary share, a decrease of 6.7% on the 10.4pence  per ordinary share paid in respect of the year ended 31 December 2014.

The fourth interim dividend for the year ending 31 December 2015 will be paid on 31 March 2016 to members on the register at the close of business on 4 March 2016.  The Ordinary Shares will be marked ex-dividend on 3 March 2016.

Future dividend strategy

Following the refinancing of the 2015 zero dividend preference shares (“ZDPs”) with a smaller issue of 2020 ZDPs (the issue size being determined by a minimum cover level for the new ZDPs), the directors have reviewed the impact that this will have on projected earnings per share. Having completed this review, the directors announce that they expect the total dividend per Ordinary Share for 2016, in the absence of unforeseen or exceptional circumstances, to be at least 8 pence  (9.7 pence per Ordinary Share for 2015)¹. The Company intends to maintain the current dividend timetable with interim dividends paid four times a year towards the end of June, September, December and March.

Notes:

1.    The actual dividend generated by the Company in 2016 will depend on a wide range of factors including, but not limited to, general economic and market conditions, fluctuations in currency exchange rates, prevailing interest rates, and the terms of the investments made by the Company. The target annual dividend set out above should not be taken as an indication of the Company's expected future performance or results. The target annual dividend is a target only and there is no guarantee that it can or will be achieved, and it should not be seen as an indication of the Company's expected or actual return. Target returns are hypothetical and are neither guarantees nor predictions or projections of future performance.  Actual events and conditions may differ materially from the assumptions used to establish the target annual dividend. Accordingly, investors should not place any reliance on the target annual dividend in deciding whether to invest in the Company's shares.

02 February 2016

Enquiries:

Premier Fund Managers Limited                + 44 (0) 1483 30 60 90               
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Claire Long                                                                  

N+1 Singer                                                   + 44 (0) 20 7496 3000                
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Tom Smale