Deed of Settlement & Issue of Shares

2 April 2014 PowerHouse Energy Group plc ("PowerHouse" or the "Company") Deed of Settlement with Aspermont Ltd, Dilato Holdings Pty Ltd and Tesla Nominees Pty Ltd and further issues of shares to satisfy amounts due to creditors of the Group The Company has a loan outstanding to Aspermont Ltd, Dilato Holdings Pty Ltdand Tesla Nominees Pty Ltd 2011 ("the Lenders") which at 31 March 2014 amountedto approximately £405,000. In addition, in 2012, PowerHouse Energy AustraliaPty Ltd ("PHEA"), which is owned by third parties, paid a deposit of $100,000for the purchase of a 5 tpd Ultra-High Temperature gasification system whichhas not been completed. On 2 April 2014, the Company entered into a Deed of Settlement under which theCompany has agreed to issue 11,500,000 new Ordinary Shares ("the SettlementShares") in full and final settlement of all amounts due to the Lenders andPHEA. The Lenders have agreed to procure that none of the Settlement Shares aresold until after 26 June 2014. In addition, the Company has agreed to issue an aggregate of 7,956,678 newOrdinary Shares to certain creditors of Pyromex AG, a wholly owned subsidiaryof the Company, who are due, in aggregate, £263,120. Furthermore, the Company has issued a further 400,000 new Ordinary Shares insettlement of a legal dispute in the USA. Application will be made for 19,856,678 new Ordinary Shares to be admitted totrading on AIM and dealings are expected to commence on 8 April 2014. Keith Allaun, the Executive Chairman of PowerHouse, stated "I'm pleased that wehave resolved these matters that have faced the Company since we began itsrestructuring in June 2012. This positions us to complete the integration ofPyromex and PowerHouse without distraction and allows us to focus on thefuture, not on the challenges of the past." 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.