Ho Chi Minh City, Vietnam, January 4, 2012 — PHI Group, signed an agreement with Hoang Ngoc Joint Stock Co. to build a 2,000 MW coal-fired power plant in Vinh Hau Village, An Phu District, An Giang Province, Vietnam.

PHI Group is working with several international institutional investor groups that have indicated an interest in financing this project as well as power plants in Quang Tri Province with Sao Nam Group.

PHI Group has the capability to supply coal to power plants on a long-term offtake basis through its relationships in Southeast Asia and also has an agreement with a U.S. company to provide a coal-combustion-to-steam-energy system that requires 50 percent less coal to produce the same energy as presently combusted in traditional coal-fired power plants.

This system has no nitrogen oxide or sulfur oxide. Moreover, while 99.9 percent of the mercury is trapped for commercialization, water is recycled, and 99.9999 percent of carbon dioxide is captured for sequestration or commercialization.

The system can be installed at about 70 percent of the cost of today's coal combustion plants based on a comparative system with existing steam turbines and does not require the installation of large, expensive, and comparatively ineffective gas emission scrubbers as presently required on coal-fired power plants.