REG-Powerhouse Enrgy Grp: Operational update re share price movement

Powerhouse EnergyAnnouncement

01/06/2020 07:05

PowerHouse Energy Group plc

("PowerHouse" or the "Company")

1(st) June 2020

Operational Update  in Response to Share Price Movement

PowerHouse Energy Group plc (AIM: PHE), the UK technology company pioneering
hydrogen production from waste plastic, notes the recent increase in the
Company's share price and confirms that it is not aware of any material basis
for this rise over and above the Company’s previous announcements.

In relation to the proposed acquisition of Waste2Tricity Limited (“W2T”),
due diligence and legal work is nearing completion and the Company anticipates
that the circular in relation to the acquisition will be issued in June.

The Protos project, the first targeted commercial application of the
Company’s waste plastic to hydrogen regeneration technology is proceeding
under Peel L&P direction and project updates will be forthcoming regarding
ongoing activities. Peel’s project funding exercise for this first
development and their proposed pipeline of future projects is running in
parallel with, the engineering work. PowerHouse has to date received payments
for engineering and consultancy services for the completed stage of the
project and expects to receive engineering fees this month for the current
stage.

As announced on 9 March 2020, Peel has signed an Option for UK exclusivity as
developer of the Company’s DMG technology, subject to the successful
completion of the acquisition of W2T by PowerHouse, and completion of this
Exclusivity. Under this arrangement, the Company will licence its technology
to the developer in return for the annual licence fee of £500,000 on each
commercial project developed.

It is part of the Company’s strategy to seek similar development partners on
a country by country basis.

Peel is currently selecting the series of projects beyond the initial
commercial development from a list of screened sites that it and PowerHouse
have assembled. It is anticipated that announcements on the next project in
the second half of 2020.

The Company has and continues to manage outgoings and operating costs within
budget and during 2020 project engineering operating costs have been covered
by revenues received for engineering services. The Company’s current cash
balances are approximately £280,000 and with committed incoming fees, these
resources will meet outstanding fees associated with the proposed acquisition
of W2T and the Company’s current net cash burn of administrative costs until
fourth quarter of the year. Further revenues are expected from operations and
the UK exclusivity payment under the option agreement with Peel as set out in
the announcement of 9 March 2020 .

The Company expects to report its financial results for the 12 months ending
31st December 2019, by the end of this month and the Company will further
outline progress, strategy and plans within this announcement.

For more information, contact:

 PowerHouse Energy Group plc                 Tel: +44 (0) 203 368 6399  
 David Ryan, Chief Executive Officer                                    
                                                                        
 WH Ireland Limited (Nominated Adviser)      Tel: +44 (0) 207 220 1666  
 James Joyce / Lydia Zychowska                                          
                                                                        
 Turner Pope Investments Ltd (Joint Broker)  Tel: +44 (0) 203 657 0050  
 Andrew Thacker / Zoe Alexander                                         
                                                                        
 Ikon Associates (Media enquiries)           Tel: +44 (0) 1483 271291   
 Adrian Shaw                                 Mob: +44 (0) 7979 900733   

Notes for editors:

About PowerHouse Energy Group plc

PowerHouse has developed a proprietary process technology - DMG® - which can
utilise waste plastic, end-of-life-tyres, and other waste streams to
efficiently and economically convert them into syngas from which valuable
products such as chemical precursors, hydrogen, electricity and other
industrial products may be derived. The PowerHouse technology is one of the
world’s first proven, modular, hydrogen from waste (HfW) process.

The PowerHouse DMG® process can generate up to 2 tonnes of road-fuel quality
H2, and more than 58MWh of exportable electricity per day.

The PowerHouse process produces low levels of safe residues and requires a
small operating footprint, making it suitable for deployment at enterprise and
community level.

PowerHouse is quoted on the London Stock Exchange's AIM Market under the
ticker: PHE, and is incorporated in the United Kingdom.

For more information see www.powerhouseenergy.net



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