Ergo Exergy - UCG

September 15, 2005

Completion of Site Characterization phase of the Majuba εUCG™ project in South Africa

South African power generation company Eskom Holdings Limited and Ergo Exergy successfully complete the Site Characterization phase of the Majuba εUCG project. The Site Characterization objectives were to better understand the suitability of the Majuba coal resource - in terms of coal composition and reactivity and the geology, hydrogeology and rock mechanics of the reserve. The Majuba coal deposit, and specifically the selected site, is found to be technically suitable for UCG technology. The coal is proven to be reactive for the UCG process, and the hydrocarbon product composition to be favorable. It is determined that the multiple dolerite intrusions that played a role in closing down the conventional underground mining operations in the area should not pose insurmountable problems for UCG operations.

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