Carbon Energy Limited

Carbon Energy Limited (ASX:CNX) (OTCMKTS:CNXAY) today announced it had signed a non-binding term sheet with Ascot Energy Pte Ltd (Ascot Energy) to license its keyseam technology and services to develop a modular 30MW capacity syngas fuelled power project in Indonesia (Term Sheet).

Carbon Energy (ASX:CNX) (OTCMKTS:CNXAY) is pleased to announce that the Company's largest shareholder, Kam Lung Investment Development Company Ltd ("Kam Lung"), will increase its interest in the Company to 19.99% with Kam Lung also to nominate a representative to join the Carbon Energy Board of Directors.

Asian Activities Report for September 16, 2011 includes: Carbon Energy Limited (ASX:CNX) has successfully achieved an Underground Coal Gasification process innovation at the Company's project site in Queensland; Ivanhoe Australia Limited (ASX:IVA) has launched an equity issuance to raise up to A$150 million net proceeds to boost project development; Iron Ore Holdings Limited (ASX:IOH) announced a maiden JORC Mineral Resource at the Dragon Project of 21.5Mt at 55.4% Fe; Interra Resources Limited (ASX:ITR) has completed infill development well YNG 3240 at the Yenangyaung oil field in Myanmar; Tata Consultancy Services Limited (BOM:532540) has signed a multi-year contract with Nets, one of the largest payment cards, payment solutions and payment exchange information companies in Northern Europe.

Carbon Energy Limited (ASX:CNX) (PINK:CNXAF) is pleased to announce that the Company's joint project with Mulpun Energy, a subsidiary of Antofagasta Minerals S.A., has reached a major development milestone with sign off by both parties following the achievement of key Phase 1 deliverables. The project will now move forward with the formalisation of the Joint Venture Company.

Carbon Energy Limited (ASX:CNX) (PINK:CNXAF) developer of Australia's first syngas-fuelled power station is pleased to advise that the testing and commissioning program for its 5 MW Power Station is continuing to progress well.

Carbon Energy Limited (ASX:CNX) (PINK:CNXAF) is pleased to advise that testing of its 5 MW Power Station has commenced with the successful introduction of syngas to the first gas engine.

Carbon Energy Limited (ASX:CNX) (PINK:CNXAF) is pleased to advise that commissioning of Underground Coal Gasification Panel 2 is proceeding as planned at the Company's Bloodwood Creek facility, located in the Surat Basin, south-east Queensland.

Carbon Energy Limited (ASX:CNX) (PINK:CNXAF) is pleased to advise that it has now completed its acquisition of 100% of the issued capital of USA-based Clean Coal Inc. and UK-based Clean Coal Amasra Limited.

Carbon Energy Limited (ASX:CNX) (PINK:CNXAF) are pleased to advise that the Company has successfully commissioned syngas production to the main flare from its Underground Coal Gasification (UCG) Panel 2 at the Company's Bloodwood Creek facility, located in the Surat Basin, south east Queensland.

Carbon Energy Limited (ASX:CNX) (PINK:CNXAF) is pleased to advise that it has successfully initiated syngas production from its Underground Coal Gasification (UCG) Panel 2 at the Company's Bloodwood Creek facility, located in the Surat Basin, south east Queensland.