Clean Global Energy Limited (ASX:CGV) Progress Update In China

Sydney, June 28, 2010 AEST (ABN Newswire) - Clean Global Energy Limited (ASX:CGV) is pleased to update the market on our progress in China.

AuSino Energy Limited has decided, after extensive review and advice on the listing rules for the Hong Kong Stock Exchange, to fund Stage 1 of the proposed commercial plant in Inner Mongolia via a pre-listing capital raising. AuSino plans to raise US$30m. These funds will go towards the construction and commissioning of a 7PJ UCG Syngas plant. The Syngas may ultimately be acquired by a nearby state-owned power station (subject to negotiations).

Having only recently commenced discussions with interested parties to fund the US$30m, interest has been strong. We are in advanced negotiations with one China based investment group who have expressed a strong interest in funding the entire US$30m. The group is due to visit Clean Global Energy in Australia within the next 2-3 weeks to further these negotiations.

Stage 1 of the project would see a 7PJ Enriched Air UCG Syngas plant constructed and commissioned and generating revenue by mid to late 2011. Following the successful commissioning of the Stage 1 commercial plant, AuSino Energy intends to go back to the market to raise additional capital to scale up the plant to approximately 30PJ.

AuSino Energy is currently reviewing an opportunity to acquire its own coal lease in Inner Mongolia. A detailed analysis of the extensive geological and hydrology data provided by the vendor coal company has confirmed a non JORC compliant resource of 300Mt of coal that appears highly suitable for UCG.

We are currently in negotiations with the mining lease owner working towards a mutually agreeable price and terms, which will be subject to an independent review by SRK and appropriate due diligence by AuSino Energy's Beijing lawyers, King & Wood.

Following on from an MOU executed by state-owned CECIC and CGE on the 15th September 2009, CECIC has followed the progress of our current project and have expressed an interest in CGE undertaking a UCG project in partnership with CECIC. The parties are currently in negotiations with a view to reaching a final mutually beneficial arrangement, which could see CGE undertake a 2nd UCG project in Inner Mongolia.

Significant progress is being made in China and new opportunities are opening up as we develop our Chinese business arm. This is a positive step forward for the company and our shareholders. We look forward to bringing our shareholders and the market further positive news on our activities in China in the coming weeks and months.

Contact

John Harkins Chairman and Managing Director Clean Global Energy Limited Tel: +61-2-9230-0318 www.cleanglobalenergy.com.au