Ergo Exergy - UCG

November 17, 2008

Cougar Energy and Ergo Exergy Execute General License Agreement for Provision of εUCG™ Technology in Australia

Following from a successful screening and scoping study of available coal deposits for application of εUCG™ in Australia, Ergo Exergy and Cougar Energy have executed a General License Agreement for provision of Ergo Exergy’s εUCG™ Technology. The agreement paves the way for the next stage of εUCG™ development in Australia with a coal deposit near Kingaroy in Queensland already selected for initial development focus. Plans for comprehensive site characterisation and a feasibility study for the Kingaroy deposit are expected to commence immediately. Design and construction of the underground pilot plant and surface facilities will follow closely after. Cougar Energy is also pursuing various other international projects, for which the provision of Ergo Exergy’s εUCG™ Technology is accommodated in this license agreement. The agreement cements a working relationship of twelve years between the Managing Directors of the two companies, Dr Len Walker and Dr Michael Blinderman. The pair were previously responsible for implementation and execution of the ground-breaking Chinchilla trial from 1999 to 2003, which also used Ergo Exergy’s proprietary εUCG™ Technology.

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