Settlement Agreement

3 March 2014 PowerHouse Energy Group plc ("PowerHouse" or the "Company") Agreement with RenewMe *PowerHouse regains complete control of Pyromex Licenses *Licenses returned for the UK, Ireland, India, Benelux and Scandinavia *Potentially lucrative operational regions recovered by Company On 3 June 2011 the Company, PowerHouse Energy Inc and Pyromex Holding AGentered into a settlement agreement with RenewMe Limited, a companyincorporated in Cyprus ("RenewMe"), under which the parties agreed to changethe respective exclusive rights pertaining to the Pyromex technology andPowerHouse Energy Inc agreed to pay RenewMe €200,000 per annum for five years,commencing in June 2011 ("the 2011 Settlement Agreement"). Under the 2011Settlement Agreement, the Company agreed to guarantee the obligations ofPowerHouse Energy Inc. The first payment was made in June 2011 but the secondand third payments due in June 2012 and June 2013 were not settled on the duedate. As PowerHouse Energy Inc was unable to meets its obligations, allremaining amounts (€800,000) due under the 2011 Settlement Agreement wererecognised as a liability in the Company' accounts for the year ended 31December 2012. The Company is pleased to announce that it has entered into an agreement withRenewMe under which the Company has agreed to pay RenewMe €211,000 in cash by11 March 2014 and issue RenewMe with 18,331,996 new Ordinary Shares in theCompany ("Settlement Shares"), representing 5.00 per cent. of the issued sharecapital of the Company as enlarged by the issue of shares, by 1 April 2014("the 2014 Settlement Agreement"), in full and final settlement of amounts dueby the Company to RenewMe. Under the terms of the 2014 Settlement Agreement,RenewMe has relinquished its exclusive licences to exploit the Pyromextechnology in the UK, Ireland, India, Scandinavia and the Benelux countries. Inaddition, under the agreement all parties to the 2011 Settlement Agreement willbe released from their obligations thereunder (save for those which areexpressly stated to survive termination) on completion of the 2014 SettlementAgreement. RenewMe has agreed that it will only dispose of the SettlementShares through its broker on the basis that an orderly market in the OrdinaryShares is maintained. Application will be made for 18,331,996 new Ordinary Shares to be admitted totrading on AIM and dealings are expected to commence on 11 March 2014. Keith Allaun, the Executive Chairman of PowerHouse, stated "I am delighted thatagreement has been reached with RenewMe and that a resolution has been obtainedfor this significant liability of the Company to the benefit of ourshareholders. The greater benefit for the Company was the recovery of theexclusive license that had been granted to RenewMe for the UK, Ireland,Scandinavia, India, and the Benelux regions. This settlement agreement returnsthose licenses to Pyromex and gives us worldwide control of the application,delivery and operation of our Ultra-high temperature gasification technology.These 10 valuable country licenses that we have now recovered expands ourpotential customer base tremendously. " 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.