Half-yearly Report

24 September 2013 PowerHouse Energy Group plc ("PowerHouse", the "Group" or the "Company") Interim results for the six months ended 30 June 2013 PowerHouse Energy Group plc, (AIM: PHE) announces its unaudited results for thesix months ended 30 June 2013. Chairman's Statement I am pleased to report that PowerHouse has continued to take positive action inthe recovery and expansion of the Group. During the first six months of 2013, PowerHouse made significant progresstowards its goal of becoming a global force in the Waste-to-Energy (WtE)market. This time was marked by a tremendous effort on the parts of both of thePowerHouse and the Pyromex teams in achieving the completion of the PowerHouseacquisition of Pyromex AG, and on the part of the engineering, manufacturing,and commercial teams to finalize the Pyromex Ultra High Temperature Reactor(UHTR) development. The efficiency of the Pyromex UHTR system is such that it is extremelyfavourable when compared with other renewable options on the market. Thisefficiency, coupled with the economic advantages of diverting waste fromlandfills, and cleanly generating electricity makes the PowerHouse /Pyromexsolution very compelling to our potential customers. Waste-to-Energy is a growing, vibrant market in which demand is clearlyoutpacing supply. There are lucrative, long-term, rewards for companies witheconomical solutions to an ever-growing waste stream with which we are faced.The problem of waste continues to grow as first-world economies grapple withthe reality that one can only achieve so much by reducing, reusing, andrecycling. The time has come to "recover." Recover the huge deposit ofrenewable energy that lies trapped within our organic municipal and industrialwaste. By diverting appropriate waste streams from landfill, and engaging thePowerhouse process, we can recover as much as 90% of the energy that was being"thrown away", cleanly, economically and sustainably. With the acquisition of Pyromex successfully completed in August 2013 we areonly beginning to fully realise the commercial potential of the Pyromex UHTRgasification technology. We are positioning ourselves, with prudent planning,targeted hiring, and determined customer acquisition, to become a global playerin this field. During the final few months of 2013, we will continue working on thefinalization of commercialisation of the technology, stress-testing,commissioning, and customer demonstrations. We continue to aim at first unitdeliveries by early 2014 and are pushing aggressively to achieve that goal. During the six months to 30 June 2013, loss after taxation was US$403,707 (30June 2012: US$2,942,899). Operational costs during the period were tightlycontrolled and amount to US$208,626. These will increase as we assume theoperations of Pyromex, however we will maintain our strict and responsible costcontrols to ensure all available resources are focused towards commercialsuccess and shareholder value. At the Annual General Meeting and the General Meeting held on 6 September 2013,all resolutions were passed unanimously. We are excited about the integration of Pyromex and are thankful to the Pyromexteam for their continued hard work. As always the Board thank our extendedteam, our suppliers, and our shareholders who have continued to supportPowerHouse Energy Group. Keith AllaunChairman 24 September 2013 For additional information please contact: PowerHouse Energy Group plcKeith Allaun - Executive ChairmanPhone: +44 (0)20 7079 4407Email: [email protected] Sanlam Securities UK Limited (Nomad and Broker)David WorlidgePhone: +44 (0)20 7628 2200 Statement of Comprehensive Income (Unaudited) (Unaudited) (Audited) Six months Six months Year ended ended ended 30 June 30 June 31 cember Note 2013 2012 2012 US$ US$ US$ Revenue - 15,805 19,756 Administrative expenses (208,626) (1,511,949) (594,520) Operating loss (208,626) (1,496,144) (574,764) Finance income - 4 4 Other income - - 352,322 (Loss of control) / Fair valuegain on step - (1,309,296) (1,309,296)acquisition Equity accounted loss - (129,600) (475,646) Finance costs (195,081) (7,863) (210,272) Loss before taxation (403,707) (2,942,899) (2,217,652) Income tax benefit - 10,942 10,942 Loss after taxation (403,707) (2,931,957) (2,206,710) Foreign exchange arising on 73,310 56,321 (36,462)consolidation Foreign exchange included inprofit and - 1,095,440 1,095,440loss arising from loss ofcontrol Total comprehensive expense (330,397) (1,780,196) (1,147,732) Total comprehensive expenseattributable to: Owners of the Company (330,397) (1,224,542) (592,078) Non-controlling interests - (555,654) (555,654) Loss per share (US$) 3 (0.01) (0.01)