Ergo Exergy - UCG

December 5, 2006

Ergo Exergy  agrees to co-operate with Cougar Energy (Australia)

Ergo Exergy  agrees to co-operate with Cougar Energy Pty Ltd (Australia) in the development of Underground Coal Gasification projects in several states of Australia using coal resources on tenements controlled by Cougar Energy. Cougar Energy is a 100% owned subsidiary of Pinnacle VRB Limited, a company listed on Australian Stock Exchange. The drilling program on the Kingaroy tenement (Queensland) is starting on December 18, 2006.

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