Issue of Equity – Debt to Equity Conversion

Active Energy, the London quoted renewable energy, forestry management and timber processing business, announces that it has entered into an agreement with Gravendonck Private Foundation (“Gravendonck”), its major shareholder and long-term supporter, to convert US$1.02 million of existing debt in the Company, into equity.  In consideration of this agreement, Gravendonck will be issued 30,000,000 ordinary shares of 1 pence each in the Company (“Ordinary Shares”) at a price of 2.7 pence per share (the “Gravendonck Conversion” and the “Gravendonck Shares”). The Gravendonck Conversion price of 2.7 pence is based upon a 60 day VWAP calculation.