Carbon Energy Limited

Carbon Energy Limited (ASX:CNX)(PINK:CNXAF) announced it has executed an Asset Sale Agreement with Crescent Gold Limited (ASX:CRE) (as announced previously on the 14 August 2009) pertaining to the sale of all of its gold interests in the Laverton area of Western Australia.

Carbon Energy Limited (ASX:CNX)(PINK:CNXAF) Letter To Shareholders - "In July we commenced the construction of our 5MW power plant, which we aim to have up and operational prior to the end of December, with electricity following into the local grid by January next year.

On 21 October Carbon Energy Limited (ASX:CNX)(PINK:CNXAF) completed the sale of its 6.1% shareholding in Magma Metals Limited (ASX:MMB) realising A$6.5 million in cash. The funds will be used to accelerate a number of commercialisation opportunities associated with the development of its Underground Coal Gasification (UCG) projects in Australia and internationally.

A presentation to be delivered by Carbon Energy Limited's (ASX:CNX)(PINK:CNXAF) Managing Director, Andrew Dash at the Australian National Carbon Conference Brisbane - Queensland University of Technology on the 28th August 2009.

Carbon Energy Limited (ASX:CNX)(PINK:CNXAF) primary focus is to produce clean energy and chemicals feedstock from Underground Coal Gasification (UCG) and consequently is undertaking the divestment of its mineral assets. In addition to the sale of its gold assets, the Carbon Energy Board has decided to spin off its uranium interests into a separate listed entity, thereby realising the potential underlying value of these assets.

Carbon Energy Limited (ASX:CNX)(PINK:CNXAF) During June and July the team have put a number of significant actions in place. The construction of a 5MW power project in Queensland. The expansion of our resources in Qld, WA and possibly the US. To kick off the FEED (Front End Engineering & Design) study for our 20MW power facility that will incorporate Carbon Capture and Storage (CCS) technology.

Carbon Energy Limited (ASX:CNX)(PINK:CNXAF) has signed a Heads of Agreement (HoA) with Liberty Resources Limited (ASX:LBY) to establish a joint venture to develop Liberty's 338 million tonne thermal coal inferred resource in the Galilee Basin. Carbon Energy will hold 80% of the Joint Venture and will be the operator.

Carbon Energy Limited (ASX:CNX)(PINK:CNXAF) has signed a Heads of Agreement (HoA) with Liberty Resources Limited (ASX:LBY) to establish a joint venture to develop Liberty's 338 million tonne thermal coal inferred resource in the Galilee Basin. Carbon Energy will hold 80% of the Joint Venture and will be the operator.

Progress towards what will be Australia's first demonstration of Underground Coal Gasification (UCG) with Carbon Capture and Storage (CCS) technology took a major step forward today with the signing of an agreement between Queensland companies Carbon Energy Limited (ASX:CNX)(PINK:CNXAF) and ZeroGen. The agreement signals the first phase of a CO2 injection test program.

Carbon Energy Limited (ASX:CNX)(PINK:CNXAF) has signed a commercial off-take agreement with Queensland Government owned electricity provider Ergon Energy. Carbon Energy sees this contract as a major step forward in the company's commercialisation plans for three reasons.