Results of Rights Issue and Overseas Offer

6 December 2011

CERAMIC FUEL CELLS LIMITED

Results of Rights Issue AND OVERSEAS OFFER

Ceramic Fuel Cells Limited (AIM / ASX: CFU) is pleased to announce the result of its Rights Issue made to qualifying participants within Australia and New Zealand and its Overseas Offer made to qualifying participants outside of Australia and New Zealand and certain other territories.

Approximately 38% of the Rights Issue Shares were subscribed for by shareholders. The Company will issue 76,983,530 fully paid ordinary shares at the issue price of 10.8 cents to raise an additional AUD 8.3 million (GBP 5.4 million).

Approximately 84% of the Overseas Offer Shares were subscribed for by shareholders. The Company will issue 25,686,748 fully paid ordinary shares at the issue price of seven pence to raise an additional GBP 1.8 million (AUD 2.7 million).

The total amount raised under the Rights Issue and Overseas Offer is AUD 11 million (GBP 7.2 million). These funds are in addition to the AUD 5.9 million (GBP 3.8 million) raised under the recently completed placing to institutional investors and subscription by a UK cornerstone investor.

The total amount raised before costs under all fundraising tranches is AUD 16.9 million (GBP 11 million).

Together with existing cash reserves this will give the Company cash of approximately AUD 25 million (GBP 16 million).

Chairman Jeff Harding said:

"The Board thanks existing shareholders for their strong support for the Company, particularly at a time of uncertain equity markets for clean technology companies. As we set out in the Prospectus, the additional funds raised will allow the Company to execute its current business plan and increase production of our world leading clean energy products, while continuing to reduce unit production costs.

Over the past year we have increased our orders more than ten times, and now have an order book of more than 600 units. We are gaining momentum through our commercial sales channels as well as our utility partners. Last week we announced an order for just over 100 units from E.On UK, and this week our integrated unit developed in France with De Dietrich Thermique and GDF Suez received European product approval.

Management and the Board will continue to focus on building orders, converting orders to revenue and cashflow and ensuring the Company is appropriately funded to take advantage of the enormous market opportunities we see for the Company's products."

Applications have been made for the Rights Issue Shares and Overseas Offer Shares to be admitted to trading on ASX and AIM and it is expected that dealings in the Overseas Offer Shares on ASX and AIM will commence on 9 December 2011 and that dealings in the Rights Issue Shares on ASX and AIM will commence on 12 December 2011.

On admission of these shares, the Company will have 1,366,298,863 ordinary shares in issue.

For further information please contact:

About Ceramic Fuel Cells Limited:

Ceramic Fuel Cells Limited is a world leader in developing fuel cell technology to generate highly efficient and low-emission electricity from widely available natural gas. Ceramic Fuel Cells is developing fully integrated power and heating products with leading energy companies E.ON UK in the United Kingdom, GdF Suez in France and EWE in Germany.

Ceramic Fuel Cells has also sold more than 300 BlueGen gas-to-electricity generators to major utilities and other foundation customers in Germany, the United Kingdom, Switzerland, The Netherlands, Italy, Japan, Australia and the USA.

Ceramic Fuel Cells recently won the 2010-11 DuPont Design for a Sustainable Future innovation award and the Microgeneration UK 2011 Technical Innovation Award. The company is listed on the London Stock Exchange AIM market and the Australian Securities Exchange (code CFU).

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