Active Energy Regulatory News (AEG)

Active Energy Group plc

("Active Energy" or the "Company")

New Contract Win with Biomasse Italia SpA

Active Energy Group plc ("AEG"), the pan-European supplier of high quality woodchip and associated timber products for green energy Biomass power generation and MDF manufacturing, is pleased to announce a major new supply contract with Biomasse Italia SpA ("Biomasse Italia" or "BMI"), one of Europe's largest virgin Biomass energy producers.

Founded in 1997, Biomasse Italia is based near Naples and, through its two power stations situated in Crotone and Strongoli (in south east Italy), produces up to 500GWh with an annual demand for Biomass of approximately 700,000 tonnes.

Recently, BMI invested heavily in upgrading its power plants and infrastructure, following which, BMI has selected AEG to be one of its primary suppliers of Biomass feedstock. From its Black Sea deep water port operations AEG will ship a minimum of 240,000 tonnes of Biomass over a two year period commencing 1 January 2014.

With 60% of Biomass material currently imported from outside the EU, due to supply constraints, AEG, with its access to substantial forestry resources in Ukraine and elsewhere in the region, has grasped this important opportunity to supply high quality Biomass in a time-efficient and cost-effective manner to one of Europe's leading operators.

Richard Spinks, CEO of Active Energy Group, said: "This is an important contract win and demonstrates the strengths of our business in terms of our ability to provide high quality Biomass, in large volumes via our deep water port operations from reliable and sustainable sources in the Ukraine as we have demonstrated over the past 2 months with our initial larger volume 'Test Cargos' with BMI. The energy industry is experiencing great pressure, across Europe, with tightening supply of wood chip and forestry products in general, particularly within the EU. We are ideally positioned to exploit this opportunity."

Enquiries:

Active Energy Group plc.

Richard Spinks, Chief Executive Officer Tel: +380 675 802 852

Sanlam Securities UK (Nominated Adviser and Broker)

Simon Clements Tel: +44 20 7628 2200

Novella Communications

Tim Robertson / Ben Heath Tel: +44 20 3151 7008

About Active Energy:

· www.active-energy.com

· Active Energy Group, an AIM-listed company, is a pan-European supplier of high quality woodchip and associated timber products for green energy Biomass power generation and MDF manufacturing.

· The company is led by a highly experienced and dedicated management team with a proven track record of working in the regions in which its operations are based.

· In June 2013, Active Energy acquired Nikofeso and raised funds in excess of £3m in order to facilitate future growth

· Ukraine, with its large forestry reserves, and efficient transportation links makes it an ideal location to supply European Biomass energy producers.

· European Biomass Market:

· EU directives are greatly accelerating demand for Biomass fuel - the European Renewable Energy Council (EREC) estimates that Biomass-based energy production will grow from 43TWh (Terawatt Hours) in 2005 to 250TWh in 2020

· Key NGO bodies such as the European Biomass Association and the European Association of Electricity Industry advocate establishing harmonised, binding sustainability criteria for solid Biomass.

· Bioenergy is expected to account for over half the EU renewable energy target according to sources such as the National Renewable Energy Action Plans