Letter of Intent Signed

26 March 2014 PowerHouse Energy Group plc ("PowerHouse" or the "Company") Letter of Intent signed with Polish Group • Pyromex take first steps to enter the lucrative medical waste industry • Polish Group signs LOI to acquire the first nominal 5 tpd Ultra HighTemperature Gasifier from Pyromex • Medical waste disposal is a fast growing industry in Europe The Company announces that Pyromex AG, a wholly owned subsidiary of theCompany, has received a non-binding letter of intent, conditional uponregulatory approvals and financing amongst other things, to acquire the firstnominal 5 tpd Ultra High Temperature Gasifier from Pyromex for use in thedisposal of medical waste. The Directors are encouraged by this development asit is estimated that the global medical waste market will have a value of $10.3billion by 2018 (Source: MarketsandMarkets). While we have not made our first commercial delivery in early 2014 as theDirectors previously anticipated, we have made good progress in negotiationswith multi-national corporations with multi-unit sales opportunities, and havebegun the redesign of the Munich 25 tpd facility with commercial operationsexpected to begin in 2015. We have discovered that the negotiation of thesepurchase/lease contracts are far more complex and time consuming when they area part of an energy creation/waste reduction eco-system. As we spend more timewith our potential customers and better understand our customers' needs, webecome better positioned to provide not only the technical leadership, but alsoassist them in obtaining any financing that is necessary to make a projectviable. 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.