Powerhouse Ener Regulatory News (PHE)

10 January 2012

PowerHouse Energy Group plc

("PowerHouse" or the "Company")

Pyromex Receives Second Commercial Order

PowerHouse Energy Group plc is pleased to announce that Pyromex AG ("Pyromex"), in which the Company has a 30 per cent. interest and an option to acquire the remaining 70 per cent, has signed its second commercial sales contract and received an initial payment for a 5-ton per day ("tpd"), ultra-high temperature, zero emission gasification reactor from Primula SRL of Italy ("Primula").

PowerHouse has been advised that the Primula contract is valued at approximately €2,000,000 and follows the previous sale of a 5-tpd reactor in October 2011 to Juno of Italy for the conversion of animal waste (bone meal) to syngas.

Primula's feedstock of wood clippings will be pelletized and then gasified using the Pyromex reactor to produce clean syngas. The pelletizing process increases the wood's energy density. The produced syngas will fuel a reciprocating engine to produce electricity from an MWM gas engine with an output capacity of 500 kWh. Heat exchanged from the engine's exhaust gas will be used to dry the wood clippings.

Ross Lyndon-James, Executive Chairman of PowerHouse, said:

"This second sale by Pyromex is further validation of the broad spectrum of feedstock the system can operate on and demonstrates the application of the Pyromex reactor for industrial applications. We congratulate our colleagues at Pyromex on their commercial success and look forward to the consolidation of the business, following the exercise of our option."

For additional information please contact:

PowerHouse Energy Group plcPh: +44 (0) 20 7887 1362Fax: +44 (0) 121 585 6228Email: inquire@powerhousegroup.co.uk

Merchant Securities Limited (NOMAD and Broker)

David Worlidge/Simon Clements

+44 (0) 20 7628 2200

Pelham Bell Pottinger

Nick Lambert / Charles Stewart

+44 (0) 20 7861 3232

About PowerHouse Energy Group plc

·; PowerHouse Energy Group plc is a leading provider of economically proven, on-site, clean energy systems that use traditional and renewable forms of fuel to generate electric and thermal energy in an environmentally responsible way

·; PowerHouse offers a complete turnkey waste/biomass to energy equipment solution either by: direct sale or energy supply under long term power purchase agreements

·; PowerHouse's shares trade on AIM under the ticker (PHE)