Active Energy Regulatory News (AEG)

14 February 2012

AIM: AEG

ACTIVE ENERGY GROUP PLC

("Active Energy" or "the Group" or "the Company")

Further re Trading Update

Further to the announcement made on 9 February 2012, Active Energy, the AIM - quoted Biomass fuel and energy efficient solutions provider announces the Company's near-term strategy and development of the Active Energy Ukraine business.

As previously announced the Company acquired Active Energy Ukraine ("AEU" formerly Bioenerho Leader Limited) in November 2011 and since that time has been focussing on deliveries against AEU's first commercial contract, being the 80,000 tonne per year contract entered into with Medium Sp Z o.o. ("Medium Sp.") (the "Initial Contract"). To date the deliveries are in-line with expectations and the Company expects total revenue from the Initial Contract to be approximately £3 million for the 12 months of 2012.

AEU's head office is located in central Kiev, Ukraine from which it operates a number of key contracts as follows:

A ten year contract with State Enterprise Lyuboml Forestry ("Lyuboml Forestry"), an administrator of the Lyuboml Forest, a state owned forest situated in Lyuboml, Ukraine, for the supply of up to 100,000 tonnes of timber per annum at a fixed price per tonne.

A ten year contract with Volyninvestbud ("Volyninvestbud"), a logging and chipping company based in Ukraine, which has been contracted to supply up to 80,000 tonnes of processed wood fuel chips at a fixed price per tonne. The raw material for the logging and chipping process is to be supplied from the Lyuboml Forestry contract.

The Initial Contract with Medium Sp., a wood chip distributor based in Poland, which supplies wood chip to a range of Polish industrial power facilities, for the supply of up to 80,000 tonnes of wood chips at a fixed price per tonne.

The Biomass fuel supply market in Europe is well established and rapidly growing. Europe has abundant sources of fuel stock, as demonstrated by the Lyuboml Foresty contract. AEU believes its location is a key benefit as European customer demand is increasingly focussed on Biomass fuel sources that originate close to the point of delivery.

The Company has demonstrated that it can deliver against customer requirements and is encouraged by the development of the AEU business thus far. The Company is therefore seeking to recruit additional support staff locally in the Ukraine as it looks to secure further contracts in the Biomass fuel supply market.

Commenting on the announcement:

Gavin Little, Executive Chairman said:

"We have gained access to natural resources and the chance to fulfill orders without commitment to large amounts of working capital and fixed costs. We are learning as we go but what is clear is that feedstock is in good supply and customer demand is there. What we need to do now is deliver on the Medium Sp Z o.o. contract, look to improve the supply chain and find further contracts to build on this new platform"

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