Trading Update

Camco International Ltd
07 August 2006



              Trading Update - Camco Expands Carbon Credit Portfolio


7th August 2006: Camco International Limited ('Camco') is a leading player in
the origination, co-development, placement and management of carbon credits
under the Kyoto Protocol.


Camco is pleased to provide an update of the progress the Company has made in
the execution of its existing portfolio of greenhouse gas emission reduction
projects and in acquiring new projects since admission to AIM. Camco was
admitted to trading on AIM on 25 April 2006, when the Company raised
approximately £24.9 million.


HIGHLIGHTS SINCE IPO:


- Expansion in overall portfolio to 103,600,000 tonnes, up from 97,400,000 at
  IPO


- Increase in contracted tonnes to 78,800,000 (+10%), up from 71,400,000 at IPO


- 7 new contracts signed exclusively by Camco for projects in China, Russia and
  Africa, totalling an estimated 15,700,000 tonnes of carbon credits


- 6 new Host Country Letters of Approval ('LOA') received for a total of
  18,400,000 tonnes of carbon credits in our contracted portfolio. Camco now has
  Host Country approvals for 19,400,000 tonnes, or almost 20% of the total
  portfolio


- 2 projects recently validated, totalling 737,528 tonnes of carbon


- 1 project registered with CDM Executive Board, for 741,260 tonnes of carbon
  credits


- Good net portfolio growth, despite reclassification of projects totalling 8.4
  million tonnes of the initial portfolio, where management cannot be certain
  projects will generate credits during the 2008-12 Kyoto commitment period


- New presence established in South Africa, a market expected to be the world's
  5th largest producer of carbon credits under the CDM



Tristan Fischer, CEO of Camco, commenting upon the Company's progress since IPO
said:


'We are very pleased with Camco's performance since our IPO in April. We have
demonstrated our ability to navigate the Kyoto approval process and have signed
a significant amount of new projects in just three months. This provides further
evidence that Camco is able both to execute its existing projects efficiently
whilst continuing to expand its project portfolio.


The recent volatility in the EU ETS 2006 price has not significantly affected
Camco's operations, as our revenues will be largely derived during Phase 2 of
the EU ETS, between 2008-2012. The short term uncertainty in EU-ETS Phase 1
pricing has, in fact, strengthened our sell-side partner relationships as more
value is placed on our ability and strategies to commercialise carbon credits
effectively.'


PROGRESS IN EXISTING PORTFOLIO


Since IPO, Camco has focused heavily on the execution of its existing project
portfolio and has advanced its projects through the Kyoto approval process.
Overall, there has been good progress in the implementation of existing projects
resulting in increased certainty of successful carbon credit commercialisation.


A key differentiator of Camco's project portfolio is the fact that the projects
are mature and feature lower build-risk, with 95% of our portfolio tonnes having
approved methodologies (or for JI projects, applicable CDM methodologies)
already in place.


Host Country approval is one of the most important stages in the Kyoto
regulatory process. In the last 3 months, Camco has received 6 Host Country
Letters of Approval from the Chinese authorities for projects
totalling 18,400,000 tonnes across sectors including industrial waste gas,
landfill gas, wind, hydro, and cement waste heat recovery. As a result, 25%
percent of Camco's contracted project tonnes now have Host Country approval,
further improving visibility on estimated volumes of carbon credits.


The Company has also recently received the final validation report for a hydro
power project in Bulgaria and a wind power project in China, bringing the total
to 5 validated projects.


The CDM Executive Board has also recently registered the Taishan Cement Works
Waste Heat Recovery Project where Camco staff authored the methodology. This is
a significant achievement, given the potential for further projects using this
same methodology in China, further boosting the potential of Camco's deal
pipeline.


NEW BUSINESS EXPANSION


Camco has increased the number of projects contracted under carbon share
arrangements. The prices achieved to date in these and other sales negotiations,
as well as in the term-sheets and ERPAs under negotiation, are consistent with
the expectations of Camco management at IPO.


At IPO, Camco's gross portfolio contained an estimated carbon credit volume of
97.4 million tonnes, of which 71.5 million were under exclusive contract
('CADA') and 25.9 million were under late stage negotiation but not yet under
exclusive contract. In the last three months, Camco's gross portfolio expanded
to 103.6 million tonnes, of which 78.8 million are now under CADA (10% increase
since IPO) and 24.8 million are under late stage negotiation, demonstrating
Camco's success in expanding its portfolio. These figures include adjustments to
the portfolio gross tonnes to account for certain changes in project design,
scope or timeline.


Camco has also made excellent progress in converting its 'Under Negotiation'
pipeline into exclusive contracts, with 7 new Carbon Asset Development
Agreements ('CADA') signed since IPO:


- 4 CADAs for projects in Russia, totalling an estimated 4,200,000 tonnes


- 2 CADAs for projects in China, totalling an estimated 10,400,000 tonnes


- 1 CADA for a project in Africa, totalling an estimated 1,100,000 tonnes


In addition to good net portfolio growth, Camco has prudently reclassified 8.4
tonnes of the IPO portfolio, where it can no longer be certain projects will be
completed in time to contribute in the 2008-12 Kyoto commitment period. Net
portfolio conversion during the period since IPO has been highly satisfactory,
and we anticipate continued success on this front.


OPERATIONS REPORT


Camco's operations since IPO have focused on building up our existing teams in
China and in Russia and expanding our presence in other markets.


In China, Camco is a well-established and respected market leader and business
there continues to expand, with new project wins and new staff in both business
development and CDM process roles. With 6 new Letters of Approval in place from
the Chinese government and 2 new project contracts in place, Camco continues to
both execute and expand its business in the number 1 CDM country in the world.


Camco has expanded its staff numbers in Russia. The enlarged team will now
facilitate the entire carbon management process in Russia, Ukraine and
Azerbaijan. Camco continues to work on its project pipeline in Russia in
preparation for the Russian government's finalisation of JI regulations.


In Central and Eastern Europe, there remains good potential for renewable energy
projects, especially in wind energy. Camco will utilise its existing European
and Russian presence to develop this market further as warranted.



OPERATIONS COMMENCED IN SOUTH AFRICA


Camco announces today the commencement of operations in South Africa, with the
recruitment of two senior developers to be based in Johannesburg. South Africa
is widely regarded as having the potential to be the world's fifth largest
producer of carbon credits, with significant energy-related opportunities
similar to those of our Chinese projects.


Camco's entry into the South African market is expected to deliver short-term
project wins and a high quality pipeline of new projects delivering carbon
credits in substantial volumes. This will further diversify Camco's portfolio
both in terms of markets and technologies.


- ENDS -



For further information please contact:


Camco International Limited                 [phone]

Tristan Fischer, Chief Executive Officer
Scott McGregor, Chief Financial Officer


PRESS

Gavin Anderson                              [phone]

Ken Cronin
Janine Brewis



ABOUT CAMCO:


Camco is a leading player in the origination, co-development, placement and
management of carbon credits under the Kyoto Protocol.


Camco works with industrial companies and utilities to identify and develop
greenhouse gas emission reduction projects, managing the entire process from
project initiation to carbon credit delivery. Camco helps maximise the volume of
credits produced and facilitate their placement with purchasers in the
international carbon market.


This 'origination to delivery' capability provides greater clarity and
management of carbon credit risks, adding value to both sellers and buyers
participating in Camco's transactions.


Camco is a market leader in carbon credit origination in China and Russia, two
of the largest potential markets for carbon credits, as well as Eastern Europe
and Africa.


Additional information is available at www.camco-international.com



END


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