COMPANY RELEASES

Energybuild Group Plc floats on AIM

Monday , 06 Aug 2007

 Overview

First day of dealing on AIM having placed 75,000,000 new Ordinary Shares at 20p per share giving Energybuild a market cap of £26 million

• Funds raised primarily to develop the Aberpergwm Mine and adjoining Treforgan underground coal mines in the Neath and Dulais Valley's of South Wales
• Defined economic resource of high quality anthracite - proven and probable reserves of  7.6 million tonnes
• Combined measured, indicated and inferred recoverable resource of 43.8 million tonnes with an overall in-situ coal seam resource of 112.2 million tonnes
• Extensive mine development and production plan independently reviewed by Wardell Armstrong
• Also developing Nant y Mynnydd opencast area currently producing 2,000-3,000 tonnes a week - production recommenced 2003
• Established off-take agreements with blue-chip companies including the nearby RWE owned Aberthaw power station

Energybuild Chairman Colin Cooke said, "The Aberpergwm and Treforgan mines in Wales have always shown great potential as producing entities. With identified and verified high quality anthracite reserves, off-take agreements in place with leading corporates and an experienced operational team lead by Rhidian Davies, I believe the Group is ideally positioned to provide investors with future asset value appreciation and a significant yield on their investment.  The Welsh mining industry has changed dramatically over the last 25 years but the fundamentals for operational success remain highly favourable with the infrastructure and operational knowledge in the region.  This, in tandem with the rising coal price and our dedicated work programme, gives me great confidence in the Group and its ability to create value for shareholders."

For further information please visit http://www.energybuild.co.uk/ or contact:

Rhidian Davies              Energybuild Group plc                          Tel: 01639 722 400

Mark Percy                  Seymour Pierce Limited                        Tel: 020 7107 8000

Hugo de Salis               St Brides Media & Finance Ltd            Tel: 020 7242 4477

Victoria Thomas           St Brides Media & Finance Ltd            Tel: 020 7242 4477

 Overview

 Energybuild Group Plc, a developer and producer of Welsh coal, has raised approximately £10.6 million through the issue of approximately 53,000,000 new ordinary shares at 20 pence per share and has today listed on AIM.  In addition to the cash fundraising, certain debts have been converted as part of the Placing at the placing price of 20p per share, resulting in the aggregate issue of 75,000,000 new ordinary shares and giving the Company a market cap of £26 million. The Group is presently developing the Aberpergwm Mine and adjoining underground anthracite coal reserves and resources located in the Neath and Dulais Valleys of South Wales. It also operates the nearby Nant y Mynydd surface opencast coal and stone mining site area and has identified further possible opencast sites within the Aberpergwm Surface Lease for potential development.

 The key features of the Group are:

 The Mine has estimated recoverable proven and probable coal reserves of 7.6 million tonnes which are part of an estimated total measured, indicated and inferred recoverable coal resource of 43.8 million tonnes with an overall in-situ coal seam resource of 112.2 million tonnes

• The proven and probable coal reserves have an estimated net present value of £40 million and the overall recoverable coal resource has an estimated 30 year life of mine net present value of £90 million
• Considerable work has been done to re-establish infrastructure at certain parts of the Aberpergwm Mine including dewatering, re-establishing ventilation and undertaking mine roadway recovery and repairs
• Development work at the Mine is eligible for Department of Trade and Industry grant aid under its coal investment aid scheme and the Group has utilised approximately £1.9 million of a total £3.5 million of the awarded grant
• Nant y Mynydd Opencast Area is currently producing between 2,000 and 3,000 tonnes of coal a week and the Group has identified further prospective opencast sites for which it intends to seek further planning permission in the next few years
• The Group is an established supplier of coal to the nearby Aberthaw power station which is owned and operated by RWE npower ("RWE") and which has recently been upgraded and now has a current estimated life to at least 2018. The Group also has a contract to supply premium value coal to wholesalers E.H. Bennett & Company Limited and operates its own retail outlet. Furthermore, the Group has recently received expressions of interest from Evans & Reid Limited and CPL, two large wholesalers of coal, with a view to purchasing premium value coal. In CPL's case for the briquetting market
• With the expected closure of nearby Tower Colliery the Directors believe that there will be increased demand for the Group's coal as well as opportunities in relation to mining equipment and workforce
• Mine development in accordance with the mining plan to increase production to 770,000 saleable tonnes per annum

 History

 The Aberpergwm Mine is located in the Neath Valley, South Wales near to the villages of Glynneath and Blaengwrach. The region around Aberpergwm has been mined for several centuries.

 During the 1970s and 1980s British Coal embarked upon a development programme to develop a mining complex connecting the Aberpergwm Mine and the former Treforgan Mine to access and mine the unworked coal seams located between the two mines, with a planned production of 640,000 saleable tonnes per annum. However, following the miners' strike of 1984/1985, British Coal entered into a national closure programme which resulted in the closure of these two mines in the late 1980s along with many others during the period from 1985 onwards.

 Since the closures, Energybuild Limited, which acquired the Mine in 2003, and its forerunners re-established many parts of the Aberpergwm Mine and resumed limited coal extraction whilst continuing to develop towards, and into, some of the access drifts that British Coal had driven in the 1970/1980s.  In July 2006, Energybuild Group Plc acquired EBH, the holding company for Energybuild Limited and has since designed a detailed plan to accelerate the Mine development with a view to achieving production of 440,000 saleable tonnes per annum within the next three years and 770,000 saleable tonnes per annum within the next six years.

 Development schedule

 In order to achieve full development, the Directors have drawn up a comprehensive development plan as follows:

 capital investment in infrastructure, machinery and ventilation

• commencement and completion of a new access drift
• commence drives North in the Eighteen Feet seam
• commence drives West in the Nine Feet seam towards the drives in the Aberpergwm-Treforgan Extension area

 By the end of 2012 the Directors intend that the Group will have completed the following:

 In 2008, projected production of c.265,000 tonnes

• By end of 2009 targeting six machines in coal development or production, 440,000 saleable tonnes per annum from the Eighteen Feet and Nine Feet seams
• Nine Feet seam, blocking out Aberpergwm-Treforgan Extension area
• Initial target extraction of c.20 million tonnes over a 30 year life
• By 2012, as a result of investment programme, production will reach 770,000 saleable tonnes per annum

 Target Markets

 The Group's principal coal markets are expected to be:

 Aberthaw power station (operated by RWE) - this power station burns low volatile anthracite coal such as that mined by the Group. RWE has recently entered into the LPCD (Large Plant Combustion Directive) whereby the plant is being fitted with FGD (Flue Gas Desulphurisation) equipment ensuring its productive life for at least another ten years or more beyond the anticipated cut-off date of 2008. The power station currently consumes 2.4 to 3 million tonnes of coal per year of which currently only approximately 40 per cent. can be supplied locally with the balance supplied from overseas. The Group has a supply contract with RWE expiring in December 2008 and RWE has expressed its interest in entering into a long term supply contract. The majority of the Group's saleable coal is expected to be sold to the Aberthaw power station

• Graded domestic anthracite coal - premium value anthracite coal is produced for the domestic market and either sold wholesale to E.H. Bennett & Company Limited, a wholesale distributor, or to retail or household customers. Generally this coal attracts premium prices to those achieved in the power generating market. The market for this product is country wide and not just restricted to Wales
• Steel mill PCI (Pulverised Coal Injection) - the Group has previously supplied Corus Port Talbot with filter cake from the coal processing plant at the Aberpergwm Mine. It is the Directors' intention to re-commence the supply of filter cake and to establish a market for the supply of PCI coal with Corus Port Talbot. The deep mine coal is more suited to this market which requires low sulphur content

Additionally, with the expected closure of the nearby Tower Colliery the Directors believe that there will be increased demand for the Group's coal as Tower Colliery supply into the same market.

 Board of Directors

 Colin Cooke, Non-executive Chairman

Began career in steel making in Wales in 1956.  Served as an executive director at Duport Group Plc until 1986.  Has extensive corporate experience including Yorkshire Water Plc and Welsh Development Agency. Currently non-executive Chairman of Fenner Plc and Dowlis Corporate Solutions.  Holds an HNC in Metallurgy and is a Fellow of Institute of Metallurgy.

 Rhidian Davies, Managing Director

Obtained British Coal licence in 1987 to operate own private sector mine. Founder and Manager of Signalfern which reversed into Consolidated Coal Plc, became MD. Other Directorships include of AML and EBH and founded MEHL.

 Karl Picton-Jones, Financial Director

In 1984 joined Deloitte, Haskins and Sells. In 1990 joined Griffith & Miles as a senior audit manager.  Joined Consolidated Coal Plc, a fully listed coal mining company in 1996 as financial controller and subsequently finance director.

Robert Morgan, Non-executive Director

Graduated from UWIST with BSc (Hons) in 1988 and began a career in the city. Became a managing director of UBS, running the equity derivatives business in the US from 1998 to 2001. He then became a senior fund manager at UBS O'Connor (a $2.5bn hedge fund). Rob left the city in 2003 to pursue other interests and has been an investor in Energybuild since its inception.

Alwyn Davey, Non-executive Director

Graduated with an LLB in 1997 from the University of Waikato (New Zealand) before joining a corporate finance boutique based in London.  In 2002 he worked on the formation of Cambrian Mining where he remains the senior corporate manager.

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