Carbon Energy Limited

Carbon Energy Limited (ASX:CNX)(PINK:CNXAF) announced today the signing of its first commercial contract in Australia, related to energy generated from the Underground Coal Gasification (UCG) process. This represents a major step forward in Carbon Energy's commercialisation process as it demonstrates that syngas (produced via the UCG process) has the ability to become an important and viable alternative source for Australia's energy future.

Carbon Energy Limited (ASX:CNX)(PINK:CNXAF) successfully completed a share placement of approximately 74.4 million ordinary shares at A$0.43 to raise A$32 million. Strong interest from both domestic and overseas institutional and sophisticated investors has resulted in the issue being oversubscribed.

Today the Australian Financial Review (AFR) reported that Incitec Pivot Limited's (ASX:IPL) stake in Carbon Energy Limited (ASX:CNX)(PINK:CNXAF) has been diluted following Carbon Energy's recently announced A$32 million capital raising. This is not completely accurate.

The Australian share market closed lower. The benchmark S&P/ASX200 index was down 82.6 points, or 2.06 per cent, at 3934.6, while the broader All Ordinaries index fell 76.8 points, or 1.92 per cent, to 3932.5. Resources stocks will benefit from the rise in commodities prices, but could be weighed down by the failure of investment deal between Rio Tinto and Chinese government backed Chinalco.

The Board and Management of Carbon Energy Limited (ASX:CNX)(PINK:CNXAF) are pleased to announce that it has successfully completed a share placement of approximately 74.4 million ordinary shares at $0.43 to raise $32 million. Strong interest from both domestic and overseas institutional and sophisticated investors has resulted in the issue being oversubscribed.

Carbon Energy (ASX:CNX) CEO Andrew Dash at RIU Sydney Resources Roundup in May 2009. Carbon Energy's purpose is to produce clean energy and chemicals feedstock from Underground Coal Gasification (UCG) syngas.

Carbon Energy Limited (ASX:CNX)(PINK:CNXAF) Clarifying Statement to the announcement made on 13 May 2009 (MD's Presentation at the Sydney Resources Round-up Conference)

Following the change of the Company's name to Carbon Energy Limited (ASX:CNX)(PINK:CNXAF)(previously Metex Resources Limited), the Board and Executive Management completed the Carbon Energy Strategic Plan to guide and assist the Company over the next three years. The Board has approved the Plan that defines the key strategies that will underpin Carbon Energy's ongoing development and success.

Following the change of the Company's name to Carbon Energy Limited (ASX:CNX)(PINK:CNXAF)(previously Metex Resources Limited), the Board and Executive Management completed the Carbon Energy Strategic Plan to guide and assist the Company over the next three years. The Board has approved the Plan that defines the key strategies that will underpin Carbon Energy's ongoing development and success.

Carbon Energy Limited (ASX:CNX)(PINK:CNXAF) has executed a Heads of Agreement with Eneabba Gas Limited (ENB) and its fully-owned subsidiary, Eneabba Mining Pty Ltd (EMPL) to acquire EMPL's granted coal tenements of over 1,000 km2 and develop an Underground Coal Gasification syngas supply for the planned ENB owned Centauri 1 Power Station near Dongara in Western Australia.