Suspension Update

24 Dec 2007 10:31

Cue Energy Plc24 December 2007 Cue Energy plc ("Cue" or "the Company") Suspension Update ----------------- On 28 September 2007, the Company announced that it had agreed in principle,subject to funding, to acquire 100% of the issued capital of Oreion, a privateAustralian company, in order to commercialise the micro fuel cell technology("the PEM Technology") which had been developed by a leading governmentaltechnology research organisation. Trading in the Company's ordinary shares onAIM was suspended as the acquisition would have been classified as a reversetakeover under the AIM Rules. In light of potential alternative new investment opportunities for the Companyand taking into account the additional time and capital required in preparingthe PEM Technology and Oreion for a transaction the Directors are now working ona structure under which it is intended that Oreion will move to commercialisethe PEM Technology as an independent company in which Cue will have asignificant equity position. Discussions with regard to the original proposedacquisition have therefore terminated. Advanced discussions with third party investors are underway to structure andfund Oreion, with the intention to list Oreion on the Australian Stock Exchangein the next twelve months. The Directors continue to believe that the PEMTechnology is a significant opportunity to commercialise a world leadingtechnology in the hydrogen fuel arena. The Directors intend to request a resumption in trading of the Company's shareson AIM at the conclusion of these discussions when the debt and equity structureof the Company's ongoing financial interest in Oreion is finalised andconsequently the accounting treatment of the amounts invested to date isclarified. At 30 November 2007, the Company had provided £250,000 to Oreion under thefinance facility agreement dated 3 January 2007 and incurred £1,412,078 in thetechnical, commercialisation and legal costs of this project which includes duediligence work carried out. The total amount invested in the project as at 30November 2007 was therefore £1,662,078. -Ends- For further information:Cue Energy plcToby Howell / Gregory Kuenzel Tel: +44 (0)20 7182 1748 www.cueenergyplc.comHB CorporateEdward Hutton/ Rachel Kane Tel: +44 (0) 20 7510 8600 This information is provided by RNS The company news service from the London Stock Exchange