Investigation into Métis Procedures Related to KAQUO Forestry & Natural Resources Development Corporation Joint Venture Opportunity

The Board of Active Energy Group Plc (AIM: AEG.L) notes comments in The Edmonton Journal, and confirms that it is aware that the Honourable Jim Prentice, Premier of the Province of Alberta in his alternate role as Minister of Aboriginal Affairs, since he also holds this position, in November of last year commissioned an investigation into the procedures followed by the three Alberta Métis Settlements prior to entering into the joint venture with KAQUO Forestry & Natural Resources Development Corporation (“KAQUO”), in which the Group has a 45% interest.

The Board of AEG was at all times and continues to be fully appraised of this on-going process, and has been and continues to be fully satisfied as to the legal and regulatory processes followed by the three Métis Settlements.

AEG remains confident that its partners have at no time acted inappropriately in any way, and that this will be proven to be the case upon the conclusion of the investigation, which both the Métis Settlements and AEG welcome.

The Board of AEG does not expect that the findings of the investigation will be adversely prejudicial to KAQUO’s interests and continues to expect that negotiations concerning one of the offers announced on 28 January 2015 will be concluded satisfactorily within several months.

Richard Spinks, Chief Executive Officer of Active Energy Group Plc, commented: “We note that the office of the Right Honourable Jim Prentice, not in his capacity as Premier, but as Minister for Aboriginal Affairs of Alberta, referred to the investigation into the Métis procedures being in order to “clear the air”, and we remain wholly confident in the timing referred to in our announcement yesterday that an agreement will be secured within several months.”

“It should further be noted that AEG and KAQUO welcome this investigation, and understand that there are procedures which the Minister is forced to follow regardless of the substance of any written complaint which he may receive. We fully endorse the Premier’s transparent and independent approach to this matter, which bodes well for us as a public company investing into Alberta.”

Contact Information & Editor’s Notes

Active Energy Group Plc
Richard Spinks, Chief Executive Officer	+380 503 942 702	richard.spinks@active-energy.com
Brian Evans-Jones, Finance Director	+44 (0)7500 861 696	brian.evans-jones@active-energy.com
6 Hillgrove Public Relations
Richard Hillgrove/John Price	+44 (0)20 3603 0366	richard.hillgrove@6hillgrove.com
		john.price@6hillgrove.com
WH Ireland Ltd. (Nominated Adviser and Broker)
Chris Fielding/Mark Leonard	+44 (0)20 7220 1666

Active Energy Group:

• Company Website: www.active-energy.com

• Active Energy Group Plc, a London Stock Exchange AIM-listed company (AIM: AEG.L), is an international supplier of industrial wood chip and timber for MDF and OSB panel board manufacturing; Biomass for Energy (BFE) fuel products, including development of second generation fuel pellets and pelleting technologies; and global forestry asset development and management services.

• The Group, headquartered in the United Kingdom, currently operates from four international locations:

o Ukraine, where it is the largest producer and exporter of wood chip for MDF manufacturing. o Spain and Montenegro, from where it supplies BFE wood chip to European power plants.

o Canada, where it has entered into a landmark forestry joint venture – KAQUO Forestry & Natural Resources Development Corporation – with several indigenous Métis Settlements to commercialise in excess of 250,000 hectares of forestry/timberland assets.

• The Group is led by a highly experienced and dedicated management team with a proven track record in the industries and regions in which it operates and from which its revenues are generated.

• Ukraine and Canada, with their large forestry reserves and comprehensive road, rail and sea transport links, are ideal locations from which to source raw timber and manufacture wood chip and fuel pellets for supply to Biomass power plants and MDF/OSB producers.

Turkish MDF Market:

• Turkey is the leading manufacturer of MDF in Europe, producing over 6 million m3 of high-quality boards and finished products per annum. AEG maintains close relationships with all the major Turkish MDF producers, and works with them to develop its production capacity and product range.

• Until recently, approximately 69% of US, Canadian and Latin American industrial wood chip exports were destined for Turkey; all of it for production of wood-based panels, primarily MDF.

• AEG has successfully developed the first viable alternative to these traditional supply sources; delivering high-quality wood chip in approximately one-tenth of the transatlantic shipping time.

• As well as providing fresher and superior wood chip to its clients, AEG’s Black Sea production and shipping facilities provide them with significant cost-savings and cash flow advantages.

European Biomass for Energy (BFE) Market:

• Biomass-generated power is expected to account for over 50% of European renewable energy, according to an EU directive on National Renewable Energy Action Plans

• EU directives and continued commissioning of new Biomass and CHP power plants across Europe continue to generate additional demand for Biomass fuel.

• The European Renewable Energy Council (EREC) estimates that Biomass-based energy production will grow from 43TWh (Terawatt Hours) in 2005 to 250TWh in 2020.

NT4