2011 Preliminary Results

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This press release does not constitute or form a part of, and should not be construed as, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities in MyCelx Technologies Corporation ("MyCelx" or the "Company").

THE COMPANY'S COMMON SHARES HAVE NOT BEEN REGISTERED UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE "US SECURITIES ACT") OR ANY STATE SECURITIES LAWS (THE "STATE ACTS") AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS THE SECURITIES ARE REGISTERED UNDER THE US SECURITIES ACT AND ANY APPLICABLE STATE ACTS, OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE US SECURITIES ACT AND ANY APPLICABLE STATE ACTS IS AVAILABLE.

MYCELX TECHNOLOGIES CORPORATION

(AIM: MYX)

2011 Preliminary Results

MyCelx, the clean water technology company providing patented solutions for commercial industrial markets worldwide, is pleased to announce its maiden, preliminary, unaudited results as a listed company for the year ended 31 December 2011.

Highlights

Financial 

·; Revenues up 45.5% to $6.26 million (2010: $4.30 million)

·; Equipment revenues (either sold or leased) up 101.5% to $2.70 million (2010: $1.34 million)

·; Consumable (filtration media) revenues up 20.3% to $3.56 million (2010: $2.96 million)

·; Gross profit margins decreased to 46.9% (2010: 53.8%) as a result of large orders of lower margin equipment sales and leases

·; Cash balance at period end $15.1 million (2010: $0.2 million) as a result of an initial public offering ("IPO") on AIM in August 2011 which raised approximately $20 million in gross proceeds

·; Loss before income taxes was $2.8 million (2010: $0.4 million). The loss includes non-cash stock based compensation of $1.1 million, of which $426,000 are one-time expenses. The loss also includes another $415,000 in one-time cash expenses related to the IPO.

·; Loss per share - basic was 30 cents (2010 earnings per share - basic: $0.05)

Operational

·; Middle East 'fast-to-market' lease program produced strong revenue through year end 2011 into 2012 and provided new customer reference sites

·; Received purchase orders from a major US-based fuel oil storage terminal to deliver equipment and consumable media for April 2012 installation

·; Signed a Master Services Agreement with Chevron and delivered a MyCelx Clean Water system for its new-build platform in the Gulf of Mexico

·; Completed successful trials at gas production sites in Canada, petrochemical facilities in Saudi Arabia, onshore production operations in Qatar, and with existing customers in Wyoming and the Gulf of Mexico

·; Placed orders for four MyCelx systems to address demand for emergency and short lead time sales opportunities executing on our strategy to have quick deploy lease equipment available in the Middle East

·; Hired six professional engineering and production personnel

Post period end events

·; $1.9 million letter of intent signed with a major Indian EPC company for effluent treatment support

·; $400,000 contract signed with a UAE-based company to integrate a MyCelx Clean Water system into one of its key production processes - MyCelx's first installation in the UAE

·; Additional equipment delivered to a major independent US oil and gas producer, a pre-existing customer, which should result in significant further media sales

·; Appointment of Swinton Griffith, a former partner with Ernst & Young, as a Non-Executive Director and Chairman of the Audit Committee

Commenting on these results, Connie Mixon, CEO, said:

"We are very pleased with our results for the financial year 2011. We achieved strong revenue growth, increased penetration with some of our largest customers, and received revenues from new customers. I am especially pleased with the significant increase in equipment sales and leases in 2011, which will lead to future consumable media sales, building further on our recurring revenue business model.

"The funds received from our IPO in August 2011 are enabling us to capitalise on the early commercial success we have experienced and to pursue our growth strategy of accelerating the Company's penetration of key markets. Our focus on geographic regions, where the Company already has projects underway, allows us to build on existing relationships as well as leveraging that success to new opportunities.

"Early commercialisation of MyCelx's patented solutions has positioned us well to benefit from trends in the produced and process water treatment market for clean water discharge or reuse. With regulations becoming more stringent, production moving further offshore, and operational requirements becoming more demanding within refineries and petrochemical plants, MyCelx is in a unique position to capitalise on this fast growing market with its technologically advanced water treatment systems.

"In 2012, current trading activity is robust due to the combination of ongoing media sales and project installations commissioned in late 2011. The pipeline of advanced stage projects continues to grow as trials with new and existing customers have proven successful and moved to the final engineering design stage."

For further information please contact:

Notes for Editors:

·; MyCelx Technologies Corporation is a clean water technology company that provides novel water treatment solutions to the oil and gas, power, marine and heavy manufacturing sectors

·; MyCelx invented and is the owner of the MyCelx polymer which is infused in the consumable media contained in equipment supplied by the Company

·; The technology produces treatment results that compare favorably to existing competition in effectiveness, cost and footprint. The MyCelx polymer and its use are protected by patents and other intellectual property rights

·; The defining difference of the MyCelx polymer as compared with alternative technologies currently available is that it is capable of permanently and reliably removing free, emulsified and dissolved hydrocarbons from water upon contact to levels between 0-10 parts per million (ppm) at any flow rate.

·; MyCelx equipment has been installed successfully at the facilities of leading industry operators around the globe. The focus of the Company is now directed at the commercial application of MyCelx solutions in both upstream and downstream markets in the oil and gas industry

·; Over the last three years, the Company has sold its products primarily in North America, Asia, Australia, Middle East and Europe. Customers include such oil and gas companies as Chevron, BP, Anadarko Petroleum Corporation, SABIC, engineering, procurement and construction companies such as Mustang Engineering and global water treatment companies.

·; Further information on MyCelx Technologies Corporation can be found at www.mycelx.com.

Chairman's and Chief Executive Officer's Statement

We are delighted to announce our maiden full year results as a quoted company on the AIM market of the London Stock Exchange. MyCelx made significant progress during the year towards becoming an industry leader in the area of clean water technology.The Company continues to be at the forefront of providing water treatment solutions to the oil, gas, and petrochemical industry, as well as power, marine and heavy manufacturing sectors. The Company's business model is centred on providing innovative solutions, which combine equipment supplied by MyCelx, with the use of consumable filtration media, also supplied by MyCelx, which must be replaced on a recurring basis. This consumable filtration media is infused with the patented MyCelx polymer.

As a provider to some of the world's largest oil and gas companies, MyCelx has demonstrated how its water treatment solutions enable operators to reliably meet company, industry and regulatory standards for discharge or reuse.

The Company recorded a strong financial performance, with total revenues increasing by 45.5% for 2011 to $6.26 million, compared to $4.30 million for 2010. Revenues increased both as a result of business with new customers as well as increased business from some of the Company's largest customers. Revenues from equipment sales and leases increased by 101.5% to $2.70 million for 2011 (2010: $1.34 million), while revenues from consumable filtration media increased by 20.3% to $3.56 million in 2011 (2010: $2.96 million). Gross profit increased by 27.3% to $2.94 million in 2011, compared to $2.31 million in 2010. Gross profit margins decreased in 2011 to 46.9% from 53.8% for the previous year, due to a larger portion of revenue generated by equipment sales and leases.

The Company recorded a loss before tax of $2.85 million in 2011, compared with a profit before tax of $375,000 in 2010. Basic loss per share was 30 cents, compared to a basic earnings per share of 5 cents for the previous year.

The Company made considerable operational progress in 2011 successfully delivering the system for installation on the Jack/St. Malo platform in the Gulf of Mexico. The Company is in the process of installing water treatment systems and providing media to a major US-based fuel oil storage terminal, platforms in the Gulf of Mexico, and petrochemical plants in the Middle East. Additionally, during the second half of the year, the Company executed its first large equipment leasing program for downstream services in Saudi Arabia. The Company has also seen an increase of its business opportunities in Wyoming and Alberta due to successful trials during the second half of 2011.

In August 2011, MyCelx successfully completed its IPO on the AIM market of the London Stock Exchange raising approximately $20 million in gross proceeds, resulting in $16.5 million in net proceeds. In executing the Company's growth stategy MyCelx has begun recruiting sales and engineering professionals in the Middle East and North America. The sales positions will target Saudi Arabia and Qatar in the Middle East, and Houston and the Gulf of Mexico in North America. Additionally, the Company has added professionals to its central engineering team in Gainesville which supports projects globally.

In keeping with the Company's strategy to expand further in the Middle East, the Company has placed orders for four MyCelx systems to address demand for emergency and short lead time sales opportunities, executing on the strategy to have quick deploy lease equipment available in the Middle East. Three of the systems will be delivered to MyCelx shortly, and the Company is currently working on placing them with customers in the Middle East. It is anticipated that once this has been successfully executed, more systems are likely to be ordered.

The Company has leased an office in the UK to support the sales and engineering initiatives in the United Kingdom and North Sea. Office and warehouse space will be leased in Houston and staff recruited to expedite project flow in the Gulf of Mexico and South America as well as to meet the demands of the global Engineering, Procurement and Construction companies located in Houston.

MyCelx has also engaged a marketing firm with global reach to create and implement a comprehensive marketing plan and facilitate brand awareness internationally.

During the second half of 2011, the Company completed its executive team by hiring William (Bill) Donges as its Chief Operating Officer. Mr. Donges, who was previously a non-executive Board member, stepped down from the Board upon accepting the COO position. Mr. Donges has significant experience in midsize manufacturing and material science companies and a thorough knowledge of MyCelx's systems and processes.

On December 20, 2011 an accident occurred at the Company's Research and Development (R&D) facility in Gainesville, Georgia which tragically resulted in the death of an employee. The Occupational Health and Safety Administration's inquiry into the accident is continuing.There was minimal damage to the R&D facility and the Company's R&D schedule remains on track. Production operations were not affected.

Post period end, the Company has signed two new contracts and strengthened its Board. In January 2012, the Company appointed Swinton Griffith as a non-executive Director and as Chairman of the Audit Committee. Mr. Griffith had a 28 year career as a Certified Public Accountant at Ernst & Young.

Commercially, the Company has signed a $1.9 million letter of intent with a major Indian EPC company whose own contract win requires effluent support from MyCelx. A definitive contract is expected shortly subject to the agreement of final terms.  The Company has also signed a $400,000 contract with a UAE based gas company integrating a MyCelx Clean Water system into one of its key production processes. Importantly, this is the Company's first commercial win in the UAE, a key growth market for MyCelx, and is scheduled for start up in November 2012. The Company has also delivered additional equipment to a major independent US oil and gas producer, a pre-existing customer, which should result in significant further media sales.

In summary, we are extremely pleased with the progress the Company made in 2011 and post period end. 2012 has started well with MyCelx experiencing a follow through of consumable media sales as a result of installations in late 2011 and the Company believes that it will see an acceleration of this revenue growth during the rest of the year. The market for clean water systems is very robust as the oil and gas sector continues to seek methods and technology to better manage the water associated with their production and process activities to meet internal and external goals. The Company expects this trend to continue well into the future.

Tim Eggar Connie Mixon

Chairman Chief Executive Officer

6 March 2012

Note 1 - Annual Report

The financial information set out in this document does not constitute the Company's statutory accounts for 2010 or 2011. This information has been prepared using recognition and measurement principles of Generally Accepted Accounting Principles in the United States of America ("U.S. GAAP"). The financial information as of and for the year ended December 31, 2010 is audited and the auditor's report is unqualified.

The results for 2011 are unaudited. Statutory accounts for the year ended December 31, 2011 will be finalized based on the information in this announcement.

Forward Looking Statements

This release contains certain statements that are or may be "forward-looking statements". These statements typically contain words such as "intends", "expects", "anticipates", "estimates" and words of similar import. All the statements other than statements of historical facts included in this announcement, including, without limitation, those regarding MyCelx's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to MyCelx's products and services) are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and therefore undue reliance should not be placed on such forward-looking statements. There are a number of factors that could cause the actual results, performance or achievements of MyCelx to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding MyCelx's present and future business strategies and the environment in which MyCelx will operate in the future and such assumptions may or may not prove to be correct. Forward-looking statements speak only as at the date they are made. Neither MyCelx nor any other person undertakes any obligation (other than, in the case of MyCelx, pursuant to the AIM Rules for Companies) to update publicly any of the information contained in this announcement, including any forward-looking statements, in the light of new information, change in circumstances or future events.