AFC Energy order & Issue of Shares

4 April 2014 PowerHouse Energy Group plc ("PowerHouse" or the "Company") PowerHouse orders first fuel cell from AFC Energy plc and issue of shares PowerHouse announces that it has, in a deal brokered by Waste2Tricity Ltd underthe terms of its exclusive licence with AIM-listed AFC Energy plc ("AFC"),placed an order for one of the first available Beta+ fuel cell test systems,comprising two sets of fuel cell cartridges, to be produced by AFC. The initialpayment of £50,000 has been satisfied by the issue of 2,000,000 new ordinaryshares in the Company, subject to admission to trading on AIM. The fuel cell isexpected to be delivered in December 2014, with the final balance of £100,000due for payment three months after delivery. The cartridge, within an AFC system, holds the fuel cell stack and allows quickconnection to the hydrogen and other utilities for ease of use. AFC willdeliver, connect and commission the fuel cell system while PowerHouse willprepare the site and provide the required utilities, including hydrogen basedon AFC's agreed specification. Further cartridges, additional maintenance orpotential increases in capacity will be provided for an additional fee. During the testing and commissioning of the nominal 5tpd Pyromex gasificationunit, it has been able to demonstrate that it can produce 75 per cent. purehydrogen. Following delivery of the fuel cell, work will commence on operatingthe Pyromex unit in tandem with the AFC fuel cell system in order to improvethe electrical output per volume of gas. In AFC's experience, the change to apure hydrogen stream facilitates the introduction of fuel cells as the energyconversion device. AFC considers that the benefit to the operator is that theamount of power produced for a given quantity of feedstock increases by up to30 per cent. Application will be made for 2,000,000 new Ordinary Shares to be admitted totrading on AIM and dealings are expected to commence on 10 April 2014. Keith Allaun, the Executive Chairman of PowerHouse, stated: "This is anexciting development for PowerHouse. The combination of these two advancedtechnologies has the potential to optimize their environmental advantages andelectrical efficiency and if we are able to make the improvements we expect byusing a fuel cell it could take Waste to Energy to a new level of operation." Ian Williamson, Chief Executive of AFC Energy, said: "This agreement is afurther step towards our goal for deployment of large scale fuel cell systemsin the waste-to-energy sector. We look forward to working closely withPowerHouse Energy to develop and improve the efficiencies of generatingelectricity from their gasification systems." John Hall, Managing Director of Waste2Tricity said: "At this exciting stage ofthe evaluation process we see real potential from Waste2Tricity's engagementwith Powerhouse Energy and the Pyromex system, adding value for us in thegeographical locations where we own or have the rights of first refusal for theAFC Energy technology. A successful combination of the technologies would beespecially relevant in more remote areas without an existing distributedelectricity system and so reliant on small scale diesel engines for local powergeneration. The PowerHouse systems operate not only on MSW type waste but alsoforest waste and other bio-waste materials, so combined with the fuel cellwould offer an effective way of utilising local resources." For additional information please contact: PowerHouse Energy Group plc Keith Allaun - Executive ChairmanPhone: +44 (0)20 7079 4407Email: [email protected] Sanlam Securities UK Limited (NOMAD and Broker) David Worlidge/Simon Clements +44 (0) 20 7628 2200 About PowerHouse Energy Group plc PowerHouse Energy Group plc is an alternative energy company specialising inthe sale of waste to energy systems. PowerHouse's key advantages centre on itsimplementation of proprietary technology and a wealth of industry knowledge.The Company's technologies enable energy recovery from municipal waste streamsthat would otherwise be directed to landfills and incinerators; or fromrenewable and alternative fuels such as biomass, lignite (brown coal), tires,and plastics to create syngas for power generation or reformed into liquidfuels for transportation. For more information, visit our website atwww.powerhouseenergy.net. About AFC Energy Founded in 2006, AFC Energy plc is re-engineering proven alkaline fuel celltechnology to reduce the cost of electricity. Alkaline fuel cells have beenused on US and Russian manned space missions for decades to provide electricalpower and drinking water. By using platinum free, advanced materials, designtools and manufacturing processes at scale, AFC Energy is developing fuel cellsthat will compete with conventional technologies such as turbines forelectrical power generation. Today, AFC Energy is pursuing opportunities inseveral sectors where hydrogen is readily available including the chlorine,clean coal and waste-to-energy industries as well as applications fordistributed/back-up power. For further information, please visit the website:www.afcenergy.com. Waste2Tricity Ltd Waste2tricity is a structured solutions provider for the waste to energy sectorand through its exclusive UK & Thai EfW Licences and rights of first refusal toAFC Technology will act as a platform developer for projects involving fuelcells in projects using waste as a feedstock. Its shareholders includeErvington Investments (UBO Roman Abramovich), Age of Reason Foundation andEturab, all of whom are substantial shareholders in AFC Energy and/or Alter NRGWestinghouse and represent approx. 30% of each company. For more information,visit Waste2Tricity at www.waste2tricity.com