PowerHouse Energy Group plc                          
                           ("PowerHouse", or the "Company")                        

                                   PHE G3-UHt Update                               

    Powerhouse Energy Group plc (AIM: PHE), the company focused on ultra-high
    temperature gasification waste to energy systems, is pleased to announce that
    its G3-UHt Ultra-high temperature Demonstration gasification system has left
    the harbour in Brisbane, Australia and is bound for the UK. The transit time is
    estimated to be 50 days.  

    The G3 System incorporates the latest advances in material technologies and
    electrical and thermal efficiencies to convert waste to energy. It is the
    Company's flagship reactor and has been completely redesigned, re-engineered,
    and constructed for commercial roll-out.

    The Company continues its discussions with a number of interested commercial
    parties for the siting of the G3 Demonstration Unit in a well-suited location
    including those that could be used as a commercial site. 

    Keith Allaun, Executive Chairman of PowerHouse commented: "Given our recent
    announcement to co-develop projects with Waste2tricity Ltd (W2T), we took the
    decision to ship the G3 at the earliest opportunity. W2T are in negotiations,
    on our behalf, for an advantageous site for the G3 Demonstration Unit, as well
    as a potential development site for our first commercial operation."  

    "The UK is key to PowerHouse and is where we intend to manage the Company's
    operations. It is therefore commercially practical to cultivate relationships
    with the domestic engineering and waste community. We believe that having the
    G3 available for hands-on demonstration and local testing will facilitate
    commercial interest and broaden opportunities for the Company more rapidly."

    For more information, contact:

    PowerHouse Energy Group plc                      Tel: +44 (0) 203 368 6399   
    Keith Allaun, Executive Chairman                                             
                                                                                 
    WH Ireland Limited (Nominated Adviser)           Tel: +44 (0) 207 220 1666   
    James Joyce / James Bavister                                                 
                                                                                 
    Vicarage Capital Limited (Broker)                Tel: +44 (0) 203 651 2910   
    Jeremy Woodgate                                                              
                                                                                 
    IFC Advisory (Financial PR & IR)                 Tel: +44 (0) 203 053 8671   
    Tim Metcalfe / Graham Herring / Heather                                      
    Armstrong / Miles Nolan                                                      
                                                                                 

    About PowerHouse

    PowerHouse is the holding company of the G3-UHt System Ultra High Temperature
    Gasification waste to energy systems.

    The Company is focussed on technologies to enable energy recovery from
    municipal waste streams that would otherwise be directed to landfills and
    incinerators; or from renewable and alternative fuels such as biomass, tyres,
    and plastics to create syngas for power generation, high-quality hydrogen, or
    potentially reformed into liquid fuels for transportation. These waste to
    energy systems aim to provide the "best solution" to the on-site energy market.

    PowerHouse is quoted on the London Stock Exchange's AIM Market. The Company is
    incorporated in the United Kingdom.