Powerhouse Ener Regulatory News (PHE)

15 September 2015

PowerHouse Energy Group plc

("PowerHouse" or the "Company")

Update on PHE G3-UHt Construction and Commissioning

PowerHouse announces that the construction and commissioning of the newly developed PHE G3-UHt Waste-to-Energy system is nearing completion.

The commissioning and integration work is continuing apace at the Company's Brisbane engineering facility in Australia. All individual components have passed their initial evaluations at nominal operating temperatures and are operating to specification. However, our engineering team has determined that a minor modification to the de-oxygenation system (the system which removes excess oxygen and ambient air during the feed-stock conveyor process) will dramatically improve our ability to tune the resultant synthesis gas. In other words, this modification will better allow us to determine relative volumes of Hydrogen and Carbon Monoxide produced in the syngas creation process. The ability to increase or decrease the relative amount of Hydrogen can have a significant effect on the potential integration of a Hydrogen Fuel Cell into the G3 System.

The new de-oxygenation process has been designed, modelled, and the engineering has been completed. The newly machined parts are on order and are expected to arrive within the next few weeks.

Our initial electrical generation trials will commence with a standard reciprocal generation set and will begin upon completion of the new de-oxygenation component to the feed-stock conveyance system. In addition to operating these trials on standard plastic feed-stock, PHE has contracted to begin trialling the ultrahigh temperature gasification of shredded tyres. We will also be testing other difficult to eliminate feed-stocks such as ASR (auto shredder residue) which continues to present challenges to the auto dismantling industry and contribute to the toxic waste streams of the world. By demonstrating our ability to adequately deal with this pernicious waste component, we will become the most ecologically friendly mechanism by which to extract the energy value from ASR and contribute to a cleaner planet.

Additionally, official invitations for the first week of November 2015 have begun to be sent out to interested commercial parties and European government representatives to witness the demonstration of the new PowerHouse G3-UHt Technology.

A variety of environmental and government safety certifications, as well as the protection of new intellectual property which has been developed, will begin to be applied as testing and trialling the system continues.

"This marks the beginning of the actual commercial phase of the company," stated Keith Allaun, Executive Chairman of PowerHouse. "We finally have a technology in which we can be confident, which is proving to be commercially robust, and which delivers on the promise of PowerHouse. With this new demonstration unit, we are confident that we can begin making tremendous commercial strides in this next stage of the company."

For additional information please contact:

PowerHouse Energy Group plc

Keith Allaun +1 352 226 8644/+44 7887 588 941

Allenby Capital Limited (Nominated Adviser and Broker)

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