Release: Energy World Corporation: MOU for the supply of 5 MTPA LNG

The Directors of Energy World Corporation Limited (EWC) arc pleased to announce that its 100% owned subsidiary company. PT. South Sulawesi LNG (PTSSLNG) has on 30 May 2008 entered into a Memorandum of Understanding (MOU) with PT. Indonesia Power (Indonesia Power), a wholly owned subsidiary of PLN, the Indonesian. state electricity utility. The objective of the MOU is to negotiate the supply of LNG to Indonesia Power?s power plants in Tanjung Priok, Tambak Lorok and Bali in Indonesia to replace their existing use of diesel fuel.

Under the terms of the (MOU), Indonesia Power is seeking in Phase I the supply of 1.5 million tons of LNG per annum fur a period of 10 years from 2009 with a Phase II increasing the supply of LNG up to 5 million tons per year from PTSSLNG ?s Sulawesi LNG Plant, which is now under development.

The MOU follows the granting by the Ministry of Energy and Mineral Resources, in November 2006, of a provisional LNG licence for the development, construction and operation of the Sengkang LNG terminal and the granting of the investment licence by the Investment Coordinating Board of the Republic of? Indonesia (BKPM) earlier this year.

Following the signing of the MOU negotiations will start on a Heads of Agreement (HOA) between PTSSLNG and PT Indonesia Power fur the gas sales and gas purchases and it is intended this HOA will be signed by the end of this year 2008.

The MOU is non-exclusive and discussions between EWC and other potential Asian LNG buyers remain ongoing. However this MOU marks a significant step in underpinning the Sengkang LNG liquefaction facilities. (end of release)