Green Gas concludes first Sino-International
Coal Mine Gas Management Joint Venture in China

Green Gas International (""GGI"") today announces a pioneering Joint Venture with Shanxi Energy Industries Group Co. Ltd., a large Chinese, state-owned energy and coal company and Shanxi Xingrun Coal & Coke Co. Ltd., a Chinese private energy company, to improve degasification practices and implement mine gas utilisation systems at coal mines in Shanxi province, China.

Shanxi is the largest coal producing province in China, with production of over 600 million tons of coal in 2007. Over one third of China's coal bed methane (CBM) reserves are situated in Shanxi. Exploitation of both CBM and Coal Mine Methane (CMM) are undertaken in the province.

The Joint Venture will operate under the name ""Shanxi Energy Industries Group Green Gas Methane Management Co. Ltd."" and the signing ceremony took place on 19 September 2008, during the CICEN Coal Expo in Taiyuan, China. The new venture aims to develop 1-2 clusters of mine gas drainage and utilisation projects of 20-30 MWel each in 2009 followed by a further target of 100 MWel, equivalent for implementation in 2010 and 2011.

The Joint Venture will bring various benefits to the coal mining operations of Shanxi province, including:

• Mine safety improvements with the aim to reach international standards
• Eliminating mine gas as a limiting factor for increased coal production
• Reduced ventilation capacity requirements, since a larger portion of the released gas is captured by the degasification system
• Mine gas being available in commercially usable and stable concentrations, to provide either reliable sources of power and heat for the region or to be utilised through applying innovative technology
• Additional revenues from the monetization of emission reductions under the Kyoto protocol, to enhance project feasibility

The first 100 MWel equivalent of drainage and utilisation projects that are developed, will consume approximately 200 million m³ (100 per cent CH4) of coal mine gas. This gas will produce some 700 GWh of electricity per annum, which is enough to power 200,000 households per year. In addition, some 3.0 million tons of CO2 equivalent emissions reductions will accrue every year.

Chris Norval, Executive Chairman and CEO of Green Gas International: ""We are delighted to conclude a coal mine gas management Joint Venture with Shanxi Energy Industries Group and the Shanxi Xingrun Coal & Coke Co and look forward to working with our partners. The combination of our international experience with the local knowledge and experience of our partners will provide a mutually beneficial platform to increase mine safety in China, to mitigate methane emissions from Chinese coal mines and produce clean energy.""

Zhang Liang, Chairman of Shanxi Energy Industries Group added: ""Green Gas has the right technology and experience to enhance the safety of our coal mines. Its effective solution to the problem of coal mine gas also brings commercial and environmental benefits, for us as operators and for the local communities of Shanxi.""