Alkemy Capital. Regulatory News (ALK)

3 September 2010

Alkane Energy plc

("Alkane" or the "Company")

Alkane Extends Tolling Agreement with GDF SUEZ

Alkane Energy plc (AIM: ALK), the profitable alternative energy company, is pleased to announce an 18 month extension to March 2012 of its tolling agreement with energy supply company, GDF SUEZ Energy UK ("GDF SUEZ").

During 2009, Alkane Energy entered into its first tolling contract, with the Company's chosen partner, GDF SUEZ. This tolling contract has allowed Alkane to use excess generating capacity at the Company's Shirebrook and Markham sites by generating power using conventional natural gas as fuel. As announced at 2 November 2009 the agreement is on track to earn revenues of approximately £300,000 during its first year of operation.

The new contract will now combine peak operations with the existing tolling arrangements. The agreement also expands capacity to 10MW which we expect to result in an approximate doubling in revenues from this source during 2011. Such arrangements which use conventional gas sources extend asset life, increase the scale of our operations and provide the Company with a robust and predictable income stream.

Alkane will be announcing interim results for the 6 months to 30 June 2010 on Wednesday 8th September 2010.

Commenting on the contract, Neil O'Brien, Chief Executive of Alkane Energy said:

"We are very pleased to have extended our tolling contract to include peak loading and this demonstrates our strong relationship with GDF SUEZ. We have jointly appraised our operational capacity and have found new ways of increasing revenue and cash generation from these assets."

Enquiries: Alkane Energy plc Neil O'Brien, CEO

Steve Goalby, Finance Director Tel: 01623 827 927

Hudson Sandler

Nick Lyon / Alex Brennan Tel: 0207 796 4133

Notes to editors:

1. Tolling is a method of maximising the economic value of sites by utilising the Group's excess grid and engine capacity. Under the tolling contract, Alkane effectively rents the capacity to GDF SUEZ in return for a standard fee. Using natural gas as the fuel, GDF SUEZ determines the engine running regime and is responsible for the running costs of the production.

2. Peak operations refers to generating at periods of the working week when industrial and domestic demands are at their highest.