Issue of Equity

13 July 2011

PowerHouse Energy Group plc

(the "Company")

Issue of Equity

The Company announces that it has issued 600,048 new ordinary shares at a price of US$0.21 (equivalent to £0.132) per share in satisfaction of fees payable by PowerHouse Energy, Inc., a wholly-owned subsidiary of the Company.

In addition, the Company has granted the following options over ordinary shares to Driftwood Capital Pty Ltd (as trustee for Driftwood Capital Unit Trust):

Application has been made for the new ordinary shares to be admitted to trading on AIM. Admission of such shares is expected to become effective and dealings are expected to commence on AIM on 19 July 2011. Following the issue of such shares, the Company will have 284,270,521 ordinary shares in issue.

For additional information please contact:

PowerHouse Energy Group plc

Ross Lyndon-JamesPh: +44 (0) 20 7887 1362Email: inquire@powerhousegroup.co.uk

Merchant Securities Limited (NOMAD and Broker)

David Worlidge/Simon Clements

+44 (0) 20 7628 2200

Pelham Bell Pottinger

Nick Lambert / Jenny Renton

+44 (0) 20 7861 3232

Notes to Editors:

·; 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 historical co-gen customer base has included Fortune 500 companies as well as government authorities (US)

·; PowerHouse's shares trade on the Alternative Investment Market under the ticker (PHE)