us project update

ASX ANNOUNCEMENT

CGE?S OKLAHOMA USA PROJECT MOVING AHEAD

The Board of Clean Global Energy (CGE) is pleased to update the market on the
progress of its UCG project in Oklahoma USA. Over the last 120 days significant
progress has been made on this project.
Progress includes identifying a site for CGE?s UCG plant, identifying various routes for a
pipeline between the UCG plant and the AES Shady Point Power Station, regulatory
approvals, pre-engineering in design work, advancing arrangements with the AES
Corporation, and project funding.

UCG SITE IDENTIFICATION
Over the last 120 days, Farrell Cooper Mining has provided CGE with data on its coal
and geology of the Cavanaugh mine site where CGE intends to build its UCG plant. The
data, detailing coal composition from Farrell Cooper existing works, initial coal
geological data, hydrology, infrastructure, and other relevant information, has indicated
that the Cavanaugh mine site may be suited to CGE?s Linear CRIP UCG process. CGE
has planned a focused seven-hole drilling program to obtain base line soil and water
data, coal core samples for analysis, and data for the design of the UCG reactors on the
Cavanaugh mine site.
CGE has shortlisted potential drilling contractors to undertake the drilling program. CGE
expects to let the tender in early May with a view to start drilling in early to mid-June.
Funding for drilling activities has been allowed for in the recent placement and rights
issue which is fully underwritten by Patersons Securities.

INFRASTRUCTURE AND ENGINEERING
CGE has identified potential routes for a pipeline from the Cavanaugh UCG site to the
AES Shady Point Power Plant, approximately 15 miles from the Cavanaugh UCG site.
CGE is currently assessing land holder impacts and issues surrounding underground
road crossings and other deviations to arrive at a solution that provides minimal impact
to land holders and minimise any potential environmental impacts.
CGE has shortlisted two engineering firms for the pre FEED (Front End Engineering
and Design) work for the gas treatment plant delivery and integration of Syngas into the
AES Shady Point power generation facility. CGE expects to let the FEED tender in late
May-early June, with work to commence contemporaneously with the drilling of the
Cavanaugh mine site.
CGE has already started preliminary work for the UCG reactors, including the injection
and production well configuration, and oxidant injection plant, on the Cavanaugh site.
CGE is proposing to use an enriched air gas (a mixture of air and oxygen) as the
gasification agent for the UCG reactor which will produce a high quality Syngas suitable
for use at the AES Shady Point Power Station. Construction of the injection and
production wells and the connection of those wells to start the UCG process and create
the reactor utilises specialised directional drilling to make these connections and no
fraccing is involved. Initial hydrological data provided by Farrell Cooper Mining suggests
that the water table is more than 200 feet vertically away from the coal seam in which
CGE will be establishing the UCG reactor. CGE is focused on ensuring any risk to the
water table at the Cavanaugh mine site is minimal.
CGE has completed an initial co-firing combustion analysis undertaken by Colorado
based EO Combustion Solutions LLC. The analysis was to look at the efficiency
variation of co-firing the existing boilers at the AES Shady Point Power Station with coal
and UCG Syngas for Stage 1 of the project. Initial results indicate an efficiency increase
of between 2% ? 4%.

PROJECT FUNDING
CGE is funding early stage development of the US project from current funds and funds
raised from the placement and rights issue. Approximately 20% - 25% of the funds
raised by CGE in Australia will be committed to the early development of the US project.
Further funding will be derived from project funding or a possible listing of the US entity,
Clean Global Energy Inc. on a North American Stock Exchange.
CGE Australia has been in discussions with brokers and corporate advisers in Australia,
the US and the UK regarding the US project, resulting in indicative strong support from
a number of sources for funding and funding options for the US project. CGE will
appoint a lead broker/corporate advisory firm following completion of drilling in the US.
Stage 1 of CGE?s US UCG project, estimated at $45m - $50m, includes acquisition of
the Cavanaugh coal site from Farrell Cooper Mining, the development and conversion
of the Cavanaugh mine site to a UCG Syngas production site, the construction and
commissioning of the UCG and gas treatment plants, associated infrastructure together
with the pipeline and integration into the AES Shady Point Power Station. CGE will
deliver Syngas to generate 25MW of electricity from coal firing the AES Shady Point
Power Station. Stage 2 of the project will include the expansion to supply Syngas to
produce 100MW of electricity, and Stage 3 will deliver further expansion to 300MW of
electricity.

AES MOU
Under the Memorandum of Understanding (MOU) between AES Shady Point LLC and
Clean Global Energy, the parties were required to work towards a formal and binding
agreement within 120 days from the date of the agreement, subject to CGE obtaining
approvals for use of the Cavanaugh mine site for UCG production, along with easement
access for the gas pipeline and funding commitments. Significant progress has been
made towards achieving these outcomes together with other project milestones. Both
parties have now agreed to allow the necessary time for required regulatory approvals,
pipeline easement access and funding commitments to be in place to ensure that the
project not only proceeds, but is ultimately successful.
Both AES and CGE are excited about the project and using coal in a cleaner process to
produce a significant commercial benefit for both parties, as well as ensuring
commercialisation of a cleaner coal process maximises benefits to the local community
and environment.
CGE?s Executive Chairman and CEO, Mr John Harkins, stated that ?significant positive
progress has been made towards a project that will not only benefit the interests of CGE
and the AES Corporation, but also the community of Oklahoma in the United States.
This project marks the start of the first commercial UCG to power generation project
worldwide. It is the road map to future UCG power projects in other markets where
domestic, commercial and industrial energy users rely on coal for most of its energy
needs. CGE intends to unfold similar projects like the one in Oklahoma, globally, for the
next 10 to 15 years.?