5 billion tons ofsubbituminous and lignite coal reserves

DENVER(Business Wire)Evergreen Energy Inc. (NYSE Arca:EEE), its strategic partner SumitomoCorporation and a major Indonesian mining group have agreed to advance theirjoint K-Fuel coal refinery project on Kalimantan Island, Indonesia to the nextround of detailed analysis necessary before making a decision to develop acomprehensive plant design. The proposed K-Fuel refinery would upgrade Kalimantan Island sub-bituminous coalbefore shipment to Asian markets. Together, the three companies have spent the past year examining engineeringspecifications, economic factors, market conditions and coal testing resultsrelated to the project. The yearlong effort provided critical information to thepartners and identified additional key areas in need of more detailedinvestigation before reaching a decision to develop a detailed plant design. "Evergreen announced this project in January 2008," said Evergreen President andCEO Kevin R Collins.

"And while it exemplifies the long, complicated process ofbringing a new, large-scale energy technology to market, it also shows thatpersistence, hard work and patience can pay off when the technology and businessmodels work and market conditions are favorable. All those factors are presentin this project, and we look forward to working with Sumitomo and our Indonesianmining associate to quickly complete this next round of work that we believewill lead to a detailed plant design and ultimately a definitive plantconstruction agreement." Evergreen, Sumitomo and the Indonesian mining group will share the costs of thisnext round of development work. Asian coal markets have experienced significant changes in recent years thathave created a favorable business backdrop for the K-Fuel product. WhileAustralia, Indonesia and China have historically been the regions major coalproducers, economic growth in China has turned that country into a coalimporter.

At the same time, rising demand in India and the reduced availablesupply of bituminous coal necessitate the opening of the regions vastsub-bituminous and lignite (brown coal) reserves. The World Energy Councilestimates that Indonesia, alone, has approximately 4.5 billion tons ofsub-bituminous and lignite coal reserves. The K-Fuel process will upgrade sub-bituminous and lignite coals to performancelevels approaching bituminous coal. A 2007 test found that Kalimantan coalworked well with the K-Fuel process, which significantly raised the coalsheating value.