Carbon Energy Limited

Carbon Energy Limited (ASX:CNX) (PINK:CNXAF) welcomes the Queensland Department of Environment & Resource Management's (DERM) announcement that recent comprehensive testing of water quality in Kogan Creek found no concerns.

Carbon Energy Limited (ASX:CNX) (PINK:CNXAF) has noted recent media commentary that could lead some observers to infer that water runoff from the Company's Underground Coal Gasification (UCG) facility at Bloodwood Creek near Dalby could be linked to non-hazardous levels of petroleum hydrocarbons and mercury allegedly found in Kogan Creek during testing by the Department of Environment and Resource Management (DERM).

Carbon Energy Limited (ASX:CNX) releases June 2010 Quarterly Report.

Further to the release of 16 July, Carbon Energy Limited (ASX:CNX) (PINK:CNXAF) advises it has received formal notices from the Queensland Department of Environment and Resource Management (DERM) to undertake an Environmental Evaluation of the Company's Bloodwood Creek site.

Carbon Energy Limited (ASX:CNX) (PINK:CNXAF) advised today that the Company will continue to work with the Queensland Department of Environment and Resource Management (DERM) and cooperate fully with any request for an Environmental Evaluation of its Bloodwood Creek (near Dalby) Underground Coal Gasification (UCG) trial plant.

Carbon Energy Limited (ASX:CNX) (PINK:CNXAF) has been advised by Pacific Road Capital Management Pty Limited ("Pacific Road Capital") that it has completed its acquisition of a 10% interest in CNX from the CSIRO. As contemplated in the 29 March 2010 announcement, Pacific Road Capital has introduced one of their significant international investment fund shareholders in the Pacific Road Resources Fund to take a direct interest of 4.9% in CNX, with the Pacific Road Resources Fund holding the balance of 5.1%.

Carbon Energy Ltd (ASX:CNX) is an emerging energy Company whose purpose is to produce clean energy (power and synthetic natural gas) and chemical feedstock from Underground Coal Gasification (UCG) Syngas.

Carbon Energy Limited (ASX:CNX) (PINK:CNXAF) advises that construction work is nearing completion and commissioning continues of its Queensland based 5 MW power station. Good progress has been made with planning for construction of Panel 2.

Carbon Energy Limited (ASX:CNX) (PINK:CNXAF) is pleased to announce that, after a period of extensive due diligence, Pacific Road has agreed to acquire 10% of the company from CSIRO in an off market trade. Pacific Road may elect to transfer some of this position to an investor or investors in its funds. Pacific Road supportive of Carbon Energy's growth strategy Pacific Road Capital is a private equity manager which invests in the global mining industry.

Carbon Energy Limited (ASX:CNX) (PINK:CNXAF) advises that final stages of the construction and commissioning of its 5 MW power station have been rescheduled in order to accommodate: Reconfiguration of the injection well; Completion of auxiliary work on power plant and transmission line; Progressive commissioning of each of the 4 engines, allowing for steady ramp up of power generation to 5 MW of export to the grid; and Completion of UCG panel 2.