Staff Equity - October 2011

4 October 2011

Ceramic Fuel Cells Limited

Issue of Shares and Options to Staff

Ceramic Fuel Cells Limited (AIM / ASX: CFU) announces that as part of its annual remuneration review it has issued equity to staff under the CFCL Directors and Employee Benefits Plan ("Equity Plan").

Under the Equity Plan, approved by shareholders in November 2009, the Board offers equity to staff as an important component of remuneration. Based on the Board's assessment of the Company's performance against agreed milestones over the 2011 financial year, the Board has issued 6,663,850 ordinary shares and 2,326,540 options, to a total of 97 staff. This represents approximately 0.7 percent of the Company's existing issued capital.

Half of the shares issued to staff are subject to an escrow agreement for two years, meaning that if the staff member leaves the Company within that time they forfeit the remaining shares (subject to Board discretion).

The issue of 2,326,540 share options has been made to staff based in Europe. These options have a one year waiting period before they vest and an exercise price of 15 cents, equal to the market price of the Company's shares at the end of August 2011.

Details of the shares and options issued are also set out in the Form 3B filed with ASX today, and also available on the Company's website.

The Board will seek shareholder approval to issue shares to Managing Director Brendan Dow as part of the 2011 remuneration review. The details of the proposed share issue will be set out in the notice of Annual General Meeting, to be mailed to shareholders in mid October.

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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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