AGM Statement

Alkane Energy PLC
10 May 2006

10 May 2006

For immediate release



                               Alkane Energy plc

                                 AGM Statement

At the Annual General Meeting of Alkane Energy plc ('Alkane'), to be held today
at 10.30am at Edwinstowe House, High Street, Edwinstowe, John Lander, Chairman
of Alkane, will make the following statement:

'I am pleased to provide the following update to shareholders on trading since
the start of our financial year on 1 January.

In the UK, our portfolio of mine gas assets is performing to plan with income
benefiting from the sustained increase in wholesale electricity prices. All of
our output is contracted at approximately £50/MWh for periods of up to 19
months. We are currently operating from three electricity generation sites
(Whitwell, Mansfield Woodhouse and Bevercotes) and one site where gas is
supplied direct to Scottish and Southern Energy (Wheldale). The total output is
equivalent to a generating capacity of 13MW, sufficient to power approximately
13,000 homes. At Markham, the previous mine gas supply plant has reached the end
of its commercial life and we are considering alternative proposals for the site
and for the use of the generating system elsewhere. At Shirebrook, we have
developed a solution to the broken underground pipe and we are currently
undertaking a review of the cost effectiveness of carrying out the work. Two new
sites are currently under development with a total generating capacity of 2.7MW
and other sites within the mine gas portfolio are being investigated for future
development.

We are pleased to report that the firm order book at Pro2 continues to grow and
currently stands at €29 million, more than double the orders at this time last
year.  This growth is most evident in the German biogas sector as a result of
the premium electricity prices paid under the renewable energy law.  The interim
manager appointed in March has now completed his report on Pro2's business model
and management information systems and we are reviewing his recommendations
prior to early implementation. The finance function has been strengthened with a
senior management appointment in Germany.

The Board remains committed to building Alkane into a profitable broad based
renewable energy company and we look forward to the future with greater
enthusiasm and determination than ever.'

Enquiries:

Alkane Energy plc
John Lander, Chairman                                 Tel: [phone]
Dr Cameron Davies, Chief Executive

Buchanan Communications
Eric Burns                                            Tel: [phone]



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