Energybuild Group Plc / Index: AIM / Ticker: EBG / Sector: Mining 17 December 2009 Energybuild Group Plc (Energybuild or the Company) Fundraising
Energybuild Group Plc, the Welsh producer of deep mined premium anthracite and surface mined coal, announces that it has conditionally issued approximately �14.5 million (before expenses) worth of new shares, by way of a placing by Arbuthnot Securities of 96,666,667 new ordinary shares of 10 pence each in the Company (the Placing Shares), with new and existing shareholders at a price of 15 pence per Placing Share (the Placing).

Of the Placing Shares, 66,876,540 Placing Shares are being issued to raise new funds of approximately �10 million (before expenses), and 29,790,127 Placing Shares are being issued pursuant to the conversion of loans made by Western Coal Corp (Western) to the Company.
The significant majority of the net proceeds of the Placing, together with internally generated cash, will be invested with the aim of increasing production at Energybuilds underground mine from the current 114,000 tonnes per annum of saleable coal to the targeted rate of 750,000 tonnes per annum, by 2013.

This is in addition to the Companys opencast operations, which are targeting annual production of 105,000 tonnes by 2011.

The Companys target production profile from its underground and open cast operations are as follows:
Saleable Production (year to June) Aberpergwm (tonnes) Open Cast (tonnes) Combined (tonnes) 2009 114,000 65,000 179,000 2010 153,000 68,000 221,000 2011 315,000 105,000 420,000 2012 505,000 105,000 610,000 2013 750,000 105,000 855,000
Energybuild has a strong regional customer base within a 60 mile radius of its operations and currently has sale agreements with RWEs Aberthaw Power Station, Corus at Port Talbot, as well as with Evans & Reid, a major UK coal factor.
The Placing:
An application has been made to London Stock Exchange plc, for the Placing Shares to be admitted to trading on AIM (Admission). The Placing is conditional on, inter alia, Admission becoming effective, which is expected to occur on 18 December 2009.

All of the Placing Shares will, when issued, rank in full for all dividends and distributions and otherwise pari passu in all respects with the Companys existing ordinary shares in issue.

Following the Placing, the Companys total issued share capital will be 226,666,667 ordinary shares of 10p each.

The Placing Shares will represent approximately 42.6% of the enlarged issued share capital of the Company.


58,246,667 Placing Shares are being issued to Western of which 29,790,127 Placing Shares are being issued pursuant to the conversion of the entirety of the loans made by Western to the Company, announced on 19 August 2009 and 30 October 2009, totalling approximately �4.5 million including principal and interest.

Following the issue of the Placing Shares, Western will own 124,006,667 ordinary shares, representing 54.7 % of the enlarged issued share capital.

Western is a substantial shareholder of Energybuild and therefore Westerns subscription to the Placing is a related party transaction under the AIM Rules.

The Directors of Energybuild (other than Mr.

Braam Jonker, Chief Financial Officer of Western and Mr John Hogg, who recently retired as Chief Executive Officer of Western), having consulted with the Companys nominated adviser, Arbuthnot Securities Limited, consider that the terms of the Placing are fair and reasonable insofar as the Companys shareholders are concerned.

As part of the Placing, Colin Cooke, Non-Executive Chairman of Energybuild and Rob Morgan, Non-Executive Director of Energybuild have subscribed for 166,667 and 666,667 Placing Shares respectively, and following the Placing will be interested in approximately 0.12 per cent.

and 1.4 per cent.

respectively of the enlarged issued share capital of the Company.

Energybuild Chairman Colin Cooke commented, "Our objective is to increase production to 750,000 tonnes per annum from underground operations and thereby begin to realise the full potential of our Aberpergwm anthracite mine in South Wales.


Energybuild supplies its high quality anthracite to a range of clients, who together with other interested parties, have expressed significant interest in taking additional volumes of coal from us.

Because of the interest shown for our product, we sought capital from investors to complement the substantial financial resources the Company is able to commit itself from internally generated cash flow, to assist in the development of our assets.

We look forward to working towards our anticipated production targets as well as reclassifying further of our reported resources into reserves."
** ENDS ***
For further information please visit www.energybuild.co.uk or contact:
Rhidian Davies Energybuild Group Plc Tel: 01639 722 400 John Prior Arbuthnot Securities Tel: 020 7012 2000 Ed Burbidge Arbuthnot Securities Tel: 020 7012 2000 Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7236 1177 Paul Youens St Brides Media & Finance Ltd Tel: 020 7236 1177
Notes:
Energybuild Group Plc is an AIM listed developer and producer of Welsh anthracite and surface mined coal.

The Company is presently developing the Aberpergwm Mine and adjoining underground anthracite coal reserves and resources located in the Neath and Dulais Valleys of South Wales.

The mine has a proven and probable coal reserve of 6.8 million tonnes and estimated recoverable inferred coal resource of 36.9 million tonnes.

Energybuild also operates the nearby Nant y Mynydd and Forest Quarry surface opencast coal and stone mining areas and has identified further possible opencast sites within the Aberpergwm Surface Lease for potential development.
Western Coal Corp.

is a producer of high quality metallurgical and thermal coal from mines located in northeast British Columbia (Canada) and West Virginia (USA).

The mines have the capacity to produce 7 million tonnes per year and have over 20 years of coal reserves.

Other interests owned include a 45% interest in Xtract Energy (XTR: AIM), 20% interest in NEMI Northern Energy & Mining (NNE.A: TSX) and a 46% interest in Mandalay Resources Corporation (MND: TSX.V).

The Company is headquartered in Vancouver, BC, Canada, and trades on the AIM and TSX stock exchanges under the symbol "WTN".

Further information can be found at the companys website www.westerncoal.com.
Elisabeth Cowell St Brides Media & Finance Ltd Chaucer House 38 Bow Lane London EC4M 9AY T: +44 (0) 207 236 1177 | M: +44 (0) 7900 248 213 | F: +44 (0) 207 236 1188 | www.sbmf.co.uk
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