Debenture issued to Hillgrove Investments Pty Ltd

24 February 2014 PowerHouse Energy Group plc ("PowerHouse" or the "Company") Debenture PowerHouse announces that it has entered in to a debenture with HillgroveInvestments Pty Ltd ("Hillgrove") to provide security for amounts due by theCompany to Hillgrove. The debenture grants Hillgrove a fixed and floatingcharge over all property and assets of PowerHouse. To date, Hillgrove has lent the Company approximately £1.43 million pursuant tothe convertible loan agreement dated 8 October 2012 ("Agreement"). Under theterms of the Agreement, further sums may be requested by the Company but it isat the option of Hillgrove whether the amounts are advanced to the Company.Hillgrove has provided verbal assurances to the Company that it would bewilling to advance further sums of new money to PowerHouse to enable theCompany to continue to trade but, due to the material change of Powerhousepurchasing Pyromex AG since the letter of financial support was provided byHillgrove on 28 June 2013 and the turnaround of that business, Hillgrove hasrequested that security be granted to it, in the form of a debenture givingHillgrove fixed and floating charges over the assets of PowerHouse. The granting of a debenture to Hillgrove is a related party transaction underthe AIM Rules for Companies and, having consulted with the Company's nominatedadviser, the independent directors (all directors except Keith Allaun who isnot considered independent as he was appointed by the original lender) are ofthe opinion that the terms of the debenture are fair and reasonable in so faras the shareholders of the Company are concerned and that the Company shouldgain significant commercial benefits by entering into it. A spokesperson for Hillgrove stated: "Hillgrove believes that Powerhousepotentially has a very bright and profitable future ahead of it, and is keen tosee PowerHouse move forward into its next commercial phase of developmentwhereby it is selling Pyromex gasification units to the market." For additional information please contact: PowerHouse Energy Group plcKeith 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.