Issue of Equity

24 October 2012

                          PowerHouse Energy Group plc                          

                        (the "Company" or "PowerHouse")                        

                                Issue of equity                                

The Company announces that in connection with a compromise agreement signed
with Mark Johnson, formerly the Finance Director of the Company, the Company
has issued to him 1,500,000 ordinary shares in the Company. As Mark Johnson was
a director of the Company within the last year, the issue of the shares is
deemed to be a related party transaction under the AIM Rules. The Directors,
having consulted with Merchant Securities Limited, consider the terms of the
compromise agreement to be fair and reasonable insofar as the shareholders of
the Company are concerned.

Application has been made for the 1,500,000 new ordinary shares to be admitted
to trading on AIM. Admission of such shares is expected to become effective and
dealings are expected to commence on AIM on 30 October 2012.

Following the issue of these shares, the Company will have 286,534,426 ordinary
shares in issue.

For additional information please contact:

PowerHouseEnergy Group plc

Keith Allaun

[phone]

Merchant Securities Limited (NOMAD and Broker)

David Worlidge

[phone]