Powerhouse Ener Regulatory News (PHE)

4 December 2014

PowerHouse Energy Group plc

("PowerHouse" or the "Company")

Update on Munich facility and proposed deployment of test units

PowerHouse (AIM: PHE) provides the following update in relation to its facility in Munich and the proposed deployment of test units.

PowerHouse has commenced the second phase of re-engineering to move its 25 tonne per day unit located in Eiting, Germany, near to Munich Airport. It is anticipated that as a result of the modular design of the unit, this second phase, incorporating dismantling and relocation of the existing unit, should be completed by the end of December 2014. During the process of reengineering and commercialisation, the facility is being relocated approximately 500 meters from its current location and moved to what will be its long-term location at the waste transfer station operated by Wurzer Umwelt. PowerHouse anticipates that it will be able to demonstrate un-interrupted commercial operation of the Munich facility by the end of March 2015.

The directors of the Company believe that the model of co-location of its facilities at industry leading, modern transfer stations operated by partners such as Wurzer Umwelt represents a significant opportunity for PowerHouse. Wurzer Umwelt has worked with Powerhouse in the formative stages of developing the PowerHouse Ultra High Temperature Gasification ("UHTG") technology and sees the value proposition of the Company's technology for the future.

PowerHouse is also pleased to announce that as part of the overall strategy of commercialising the Company's technology, and reflecting the high demand for evaluation of the synthesis gas generated by the UHTG process, three test units (with a nominal capacity of up to three tonnes per day) have been commissioned for deployment in Asia, Europe, and the United States. The first of these units will be demonstrated in Brisbane, Australia, in January of 2015, with the others being delivered during the first half of 2015.

The objective of deploying these test units is to provide a mobile, fully functional, containerised unit, capable of generating electricity through the use of the UHTG derived syngas. The Company believes that the ability to ship the demonstration unit to prospective customer sites for on-site testing of the actual feedstock that will be used for commercial operations is likely to be of significant benefit to PowerHouse in its discussions with potential customers. Requests for on-site testing have already been received from potential customers in the UK, mainland Europe and South East Asia (including significant interest in Australia.)

Keith Allaun, Executive Chairman of Powerhouse, stated "We are pleased with the progress the Company has made with the ongoing move of the Eiting facility. In addition, we believe that the three test units will be of significant benefit to the Company in demonstrating the commercial benefits of the PowerHouse Waste-to-Energy solution."

For additional information please contact:

PowerHouse Energy Group plc

Keith Allaun +44 (0) 20 7079 4407

Allenby Capital Limited (Nominated Adviser and Broker)

Nick Harriss/David Hart +44 (0) 20 3328 5656