HTC Hydrogen Technologies Corp.
TSX VENTURE : HTC

HTC Hydrogen Technologies Corp.

December 05, 2007 13:15 ET

HTC Hydrogen Technologies Corp. (dba "HTC Purenergy") Completes Share Swap, Technical Services and Licensing Agreements for Australia/Asia

REGINA, SASKATCHEWAN--(Marketwire - Dec. 5, 2007) - HTC Purenergy (TSX VENTURE:HTC)("HTC") has completed the previously announced agreement (September 24, 2007) with EESTech Inc. ("EESTech"), a United States public company with head offices located in Brisbane, Australia, whereby EESTech has been granted the exclusive right to commercialize HTC's Carbon Capture and Storage (CCS) Technology in the territory of Australia/Asia.

EESTech has been granted the complete commercialization business development rights to Australia/Asia through the purchase of HTC's wholly owned Australian subsidiary - CO2 Technologies Pty Ltd ("CO2 PTY"). This purchase occurred through a share swap agreement whereby HTC received ten million (10,000,000) shares in EESTech in exchange for 100% of the shares of CO2 PTY. CO2 PTY holds the exclusive commercial business development rights for the commercialization of HTC's CCS Technology solely in Peoples Republic of China, India, Japan and Asia Pacific including Australia, New Zealand, Malaysia, Indonesia, Brunei, Thailand, Philippines, and Singapore whereby HTC will receive technology licensing fees, and recurring royalties based on the performance of those technologies.

EESTech provides significant strategic value to HTC in Asia as they already have an established business in China, with their Hybrid Coal and Gas Turbine system ("HCGT"). EESTech announced in their Form 8-K filing, that "it has entered into an Agreement of Entrustment with Beijing XingliYuan Science and Technology CO. regarding several Hybrid Coal and Gas Turbine agreements". Included in the agreement is "a short list of 25 possible projects to be supported by an agreed power purchase agreement (with a term of 20 years)", of which HTC CCS Technology will qualify to supply CO2 capture systems for a portion of these orders.

Australian based EESTech provides market access value to HTC along with the benefit of the HCGT technology that was co-developed with a leading Australian Government owned research facility.

EESTech's technology provides significant commercial value to HTC's product offer in the North American, Gulf/Middle East and European markets. HTC and EESTech have signed a technology integration agreement that will commercially integrate the HCGT system efficiently into HTC's CO2 capture system. The integrated package will allow coal facilities to utilize products such as low grade waste coal and fugitive methane from coal mines to efficiently generate the necessary steam and electricity for the CO2 capture process. This integrated system is of value to CO2 emitter customers in that it will allow the CO2 capture process to generate its own steam and electricity required for the capture process. HTC's preliminary analysis indicates that the successful integration of the HCGT process with HTC's CCS system could reduce the cost of CO2 capture by 25-40%.

Completion of this HTC/EESTech share swap agreement was subject to certain conditions precedent including but not limited to completion of due diligence, intellectual property licensing, all necessary regulatory approvals and EESTech's necessary shareholder approval to increase its authorized shares to facilitate the share issuance to HTC. All these conditions precedent have been met.

Lionel Kambeitz - Chairman of HTC commented on the HTC/EESTech share swap agreement "This is beneficial in accelerating HTC's goal of commercializing its CO2 capture products globally. The HTC/EESTech share swap agreement and technology integration agreement will allow our companies to provide an integrated product offering unmatched by any company in the world today. We look forward to supplying HTC products in China based on the commercial relationships that EESTech has spent a great deal of time and resources establishing. HTC's opportunities for retro-fitting its CO2 capture systems will be significantly increased as a result of this technology integration being able to offer a stand alone CO2 capture system with reduced operating costs."

This transaction has been approved by the board of directors of HTC and the TSX Venture Exchange Inc.

HTC Purenergy corporate developments can be followed on www.htcenergy.com and is traded under the symbol HTC.

The TSX Venture Exchange Inc. does not take any responsibility for the adequacy or accuracy of the information contained in this news release.

Contact Information