Mr. David Anderson reports

GOOD SPRING POWER PROJECT INCREASES TO 300 MW

EmberClear Corp. intends to increase the power generation at the Good Spring power plant in Schuylkill county, Pennsylvania, from 270 megawatts to 300 megawatts. The 300-megawatt natural gas combined cycle (NGCC) power plant is a variation of the previously announced 270-megawatt advanced coal integrated gasification combined cycle (IGCC) power plant, named Good Spring IGCC. This change results from the recent emergence of favourably priced long-term contracts for natural gas. EmberClear plans to enter a long-term natural gas contract to supply Good Spring NGCC in the coming months. Other implications for this decision include:

Natural gas fuel source

• Good Spring power has been permitted to generate electricity from syngas and natural gas. Originally, syngas would have been created with coal gasification technology as the primary fuel with natural gas as a backup fuel source. However, improving availability and economics of domestic natural gas enables the project to use natural gas as the primary fuel source. This modification lowers the project complexity, reduces the capital cost by at least 60 per cent and accelerates the construction schedule.

Accelerating time to construction

• The lack of regulatory clarity on emissions for coal-based electricity plants and the immediate availability of natural gas provide a strong incentive to use natural gas as the primary fuel source. EmberClear has begun the contract and financial closing activities to prepare for construction in 2013.

Choice of feedstock for the future

• Use of either coal or natural gas as a feedstock is highly dependent on the differential between either one of these fuel sources with respect to the price of electricity. As contract prices for both coal and natural gas have been historically volatile, EmberClear has the option to use either fuel source. If the future regulatory environment and economics make the IGCC power plant a better solution, EmberClear has the ability to build an IGCC plant.

"The price difference between wholesale electricity and natural gas has grown substantially in the last few months," said Albert Lin, chief executive officer of EmberClear. "With long-term contracts for natural gas being so competitively priced, a compelling opportunity to quickly move into contracting and construction with higher than historical returns presents itself. We intend to capitalize on this market condition."

We seek Safe Harbor.