CUE Cue Energy

RNS Number:6104K
Cue Energy Plc
24 December 2007


                                                                

                    Cue Energy plc ("Cue" or "the Company")
                               Suspension Update
                               -----------------

On 28 September 2007, the Company announced that it had agreed in principle,
subject to funding, to acquire 100% of the issued capital of Oreion, a private
Australian company, in order to commercialise the micro fuel cell technology
("the PEM Technology") which had been developed by a leading governmental
technology research organisation. Trading in the Company's ordinary shares on
AIM was suspended as the acquisition would have been classified as a reverse
takeover under the AIM Rules.

In light of potential alternative new investment opportunities for the Company
and taking into account the additional time and capital required in preparing
the PEM Technology and Oreion for a transaction the Directors are now working on
a structure under which it is intended that Oreion will move to commercialise
the PEM Technology as an independent company in which Cue will have a
significant equity position. Discussions with regard to the original proposed
acquisition have therefore terminated.

Advanced discussions with third party investors are underway to structure and
fund Oreion, with the intention to list Oreion on the Australian Stock Exchange
in the next twelve months. The Directors continue to believe that the PEM
Technology is a significant opportunity to commercialise a world leading
technology in the hydrogen fuel arena.

The Directors intend to request a resumption in trading of the Company's shares
on AIM at the conclusion of these discussions when the debt and equity structure
of the Company's ongoing financial interest in Oreion is finalised and
consequently the accounting treatment of the amounts invested to date is
clarified.

At 30 November 2007, the Company had provided �250,000 to Oreion under the
finance facility agreement dated 3 January 2007 and incurred �1,412,078 in the
technical, commercialisation and legal costs of this project which includes due
diligence work carried out. The total amount invested in the project as at 30
November 2007 was therefore �1,662,078.

                                     -Ends-

For further information:
Cue Energy plc
Toby Howell / Gregory Kuenzel                  Tel: +44 (0)20 7182 1748

                                                   www.cueenergyplc.com
HB Corporate
Edward Hutton/ Rachel Kane                    Tel: +44 (0) 20 7510 8600





                      This information is provided by RNS
            The company news service from the London Stock Exchange

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