Progress update

Clean Energy Brazil PLC
16 January 2007

Clean Energy Brazil plc ('CEB' or 'the Company')

Progress Update Following Recent IPO
Clean Energy Brazil plc, a company with a mandate to invest directly into
Brazil's sugar and ethanol industry, is pleased to update shareholders on the
progress of its initial proposed investment in Usaciga Acucar, Alcool e Energia 
Eletrica Ltda.('Usaciga') and other projects.

Usaciga
In the short time since the Company's successful admission to AIM in December
2006, CEB and its Investment Adviser, Temple Capital Partners, have made good
initial progress in implementing the development plans for Usaciga including the 
broadening of the operational management team under the specific guidance of
Marcelo Junqueira, a director of CEB and CEO of Agropecuaria Orlando Prado Diniz
Junqueira ('Agrop'), CEB's agronomy and agricultural service provider.  The 
Directors of CEB are also pleased to note the recent heavy rainfalls which will
be beneficial to the sugar cane crop in the forthcoming growing season.

With respect to the development of the cogeneration electricity plant at
Usaciga, work continues to progress to complete the plant in line with current
business plans.  Once complete this will enable Usaciga to supply surplus 
electricity to the electricity grid under the national Proinfa Agreement
established to encourage the development of cogenerated electricity in Brazil.
The Brazilian Government recently authorised Electrobras, the state electricity 
company, to extend the date by which certain cogenerated plants are required to
become operational and therefore asked for revised documentation to be submitted
to Electrobras.  Usaciga duly submitted the relevant documentation.

The directors of CEB have authorised an initial subscription of $12 million in
Usaciga in connection with CEB's stated intention to make a total equity
investment of $137 million (as more fully described in the Company's recent
Admission Document).  For the protection of investors, the terms of this
subscription include the right to put the shares subscribed for onto the Barea
family (the majority shareholder of Usaciga) at the subscription price in the
unlikely event that the joint venture does not conclude. The planned consents
required to be obtained to enable the establishment of the joint venture holding
company in which it is intended CEB will ultimately hold a 49 per cent indirect
interest, described in the recent Admission Document, are now being actively
progressed.  As with all such consents, the timing of receipt of the final
approvals rests with the various state authorities. A further update will be
provided in due course.

Overall the Directors of CEB continue to be very encouraged by the opportunity
afforded by the Company's investment in Usaciga.

Other Projects
The Company has substantially completed preliminary legal due diligence on the
proposed greenfield investment in Pantanal Agroindustrial Ltda. ('Pantanal')
and is now finalising documentation with its investment partners. Further
announcements regarding Pantanal will follow.

The Company is progressing with the application for an environmental licence
with respect to the Agua Limpa sugar cane greenfield distillery and expects to
receive this licence in due course.

In addition Usaciga has entered into a preliminary agreement to develop a
further greenfield project in Parana State, of approximately 25,000 hectares,
which is expected to crush  up to 2 million tonnes of sugar cane per annum when 
completed.  The Directors believe that this greenfield project, if undertaken,
would have particular synergies with the existing Usaciga operations.

Enquiries:
Temple Capital Partners
Peter Thompson                                     020 7972 6629

Numis
Andrew Dawber                                      020 7776 1500
Tom Frost
David Shapton

College Hill
Peter Pantlin                                      020 7457 2020
Paddy Blewer




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