Reading on...MEE to become Carbon Energy (CEPL)Metex...

Reading on...MEE to become Carbon Energy (CEPL)

Metex shareholders will be required to approve this transaction together with a change in the Company name from Metex to Carbon Energy Ltd.

'The successful demonstration of this module will confirm CEPL’s capability as the world’s first company with the capability for commercial scale, oxygen-injected UCG syngas production suitable for existing, proven, gas to liquids and gas to chemicals technologies. Modules can be combined to meet the gas supply requirements for any power station or chemical plant.'

'Underground coal gasification has been used in large-scale operations in countries of the former Soviet
Union for over 40 years, and numerous exponential trials have been performed in former Soviet states, the
USA, Western Europe and a number of other countries.

The technology is simple to construct and operate, and involves drilling of a range of vertical wells, bores and
gasification layouts to gasify coal deposits in-situ to produce a syngas suitable for low-cost power generation.
The resultant gases are harnessed at surface for conversion into suitable feedstock for power generation, or
for conversion into ultra-clean liquid fuels and chemicals.

Carbon Energy Pty Ltd has acquired three suitable coal leases in the Surat Basin in South East Queensland,
covering an area of 2,375km2 which will be the focus of a proposed first stage of activity in identifying and
developing a suitable underground coal deposit for demonstration and commercial development of the UCG
process. These leases are located in close proximity to existing infrastructure and potential markets, being
traversed by power transmission connectors, gas and oil pipelines, and power stations.

The initial trials will target coal seams at greater than 400 metres depth, drawing on the extensive depth of
expertise developed by the CSIRO in developing and modeling controls of the UCG technology over the
past 10 years through its Division of Exploration and Mining based in Queensland.

The alternative energy sector is currently experiencing high levels of market interest because of soaring oil
prices and strong levels of demand. UCG is an innovative process which is suitable for deep underground
coal deposits where current underground mining methods and inefficient extraction techniques would make
mining uneconomic. Electricity can be generated using the resultant gas at a comparable cost to conventional
coal-fired power, but with a 40-50% reduction in greenhouse emissions. '