Ceramic Fuel Cells Limited Half Yearly Report -2- 3 March 2014

The Company's component outsourcing programme has progressed well with high quality, lower cost parts being received from its suppliers. Strategies are now in place to outsource further manufacturing of components in China which will further reduce the cost of production. In addition, our major suppliers have indicated that there will be significant cost savings once production volumes increase to reasonable levels. Unfortunately, with the SI agreement defaulting, these benefits will not be forthcoming in the short term. The Company works closely with its key supply chain partners and believes that they are both ready and capable of meeting the Company's future production volumes and required pricing levels.

At the time of writing, the Company no longer intends to increase production, until it secures orders which merit such an increase in capacity.

Technology

During this reporting period the Company continued to develop its technology further to improve the lifetime, reliability and robustness of its fuel cell stacks. Significant technical progress has been made on reducing the stacks' degradation rates. An enhanced product with these attributes is due to be released to the market in the last quarter of FY2014. In addition, substantial progress has been made on the ability of the stack to thermal cycle and modulate. These thermal cycling improvements are planned to be introduced to production in the first quarter of FY2015. Further work on improving the product will continue during the second half of this financial year.

Refund from Taxation Office for expenditure on research and development

The Company received A$4.0M (GBP2.2M) from the Australian Taxation Office during November for research and development expenditure incurred during FY2013. A further refund is likely to be received in November 2014 for FY2014.

Sale of powder plant assets and transfer of staff

In December the Company sold its powder plant assets in Bromborough, UK, for GBP1.1M (circa A$2.1M). A change in production process had resulted in CFCL no longer using the powder from the plant, hence, it realised a surplus asset which will have no detrimental effect on the production or financial operations of the Company. All the staff employed by CFCL at the powder plant have been transferred to the purchaser of the assets.

Financial Operating Results

During the half-year the number of units sold increased by 38 per cent over the comparative prior year period, and the overall level of revenue increased from A$2.6M (GBP1.5M) to A$3.4M (GBP2.0M). Revenue per unit sold is down from the prior period owing to the sales of the integrated units to EWE which were at a lower price in order to generate the sales and to enable the development of the integrated mCHP units with our integration partner, Bruns Heiztechnik. In order to promote sales, the Company sold units at close to standard cost price with the expectation that it will be able to reduce the cost of production and thus improve its gross margin in the future.

Over the comparative half-year period the average manufactured cost of the unit has reduced by approximately 15 per cent. Reduction of the manufactured cost continues to be a key strategic focus for the Company and the cost down programme that is in place is expected to achieve further significant cost reductions over the coming year.

The cost of warranty expense for the half-year was steady at A$1.0M (GBP0.6M) compared to A$1.1M (GBP0.7M) for the prior half-year. The Company is cognisant of the need to maintain an appropriate and conservative level of warranty provisioning and the provision at 31 December 2013 was A$3.3M (GBP1.9M) compared to A$1.8M (GBP1.0M) at 31 December 2012 and A$2.6M (GBP1.5M) at 30 June 2013. This increase is predominantly due to the greater number of units sold and the length of the service contracts.

Operating costs during the half-year were A$11.5M (GBP6.7M) compared to A$11.4M (GBP6.6M) for the comparative period last year. The prior year's figure included A$0.9M (GBP0.5M) of costs directly associated with the restructure of the Company's activities in late-2012. Research & Product Development costs have decreased by A$0.4M (GBP0.2M) from the corresponding period due to the afore-mentioned restructure and the consequential reduction in expenditure on core research & product development activities.

Manufacturing costs have been disclosed separately, as production in Germany is now a major activity for the Company. The increase in Manufacturing costs of A$0.6M (GBP0.3M) above the corresponding period is due to the increased production volumes in Germany and the under absorption of overheads.

General & Administration costs have decreased by A$0.8M (GBP0.5M) compared to last year due to the afore-mentioned restructure.

Sales & Marketing costs have increased by A$0.7M (GBP0.4M) over the corresponding period owing to the Company's previously disclosed strategy of increasing resources to target direct sales.

The impairment reversal of A$2.0M (GBP1.2M) for the half-year is a partial reversal, upon sale, of the A$2.6M (GBP1.5M) impairment charge recognized for the year ended 30 June 2012 on the full impairment of the plant and equipment of the Group's UK powder production plant.

Financing Activities

In December 2013 the Company completed a capital raising of A$5.8M (GBP3.3M) before expenses. This raising consisted of a Share Purchase Plan offer to qualifying shareholders in Australia and New Zealand that raised A$4.2M (GBP2.4M) and an Overseas Offer made to qualifying shareholders outside of Australia and New Zealand (and certain other territories) that raised A$1.6M (GBP0.9M). The Share Purchase Plan was undertaken at a price of 3.84 cents per share and the Overseas Offer was at a price of 2.14 pence per share (the equivalent of 3.84 cents). This pricing was designed to give eligible shareholders the ability to subscribe for ordinary shares at the same price as the investors who subscribed for the equity issue and convertible loan notes in May 2013. The Share Purchase Plan resulted in the issue of 109.3 million ordinary shares and the Overseas Offer resulted in the issue of a further 41.1 million ordinary shares.

As was disclosed in the Share Purchase Plan and Overseas Offer documentation, if the total amount raised was less than A$8.0M (GBP4.6M) the Company would be required to seek further funding in the first quarter of CY2014. It also stated that the Company would be unable to undertake the proposed capital expansion at its manufacturing facility and it would have to reduce the engineering work being done to lower the manufactured cost of BlueGEN units. The Directors believe this has resulted in a slower move down the manufacturing cost curve and, as a result, the Company has had to maintain a higher selling price which has reduced demand for the Company's products.

Matters Subsequent to the End of the Half-Year

As announced by the Company on 28 November 2013, CFCL had reached an agreement with Synergy International OÜ ("SI") whereby SI agreed to purchase a minimum of 1,000 BlueGEN mCHP units. The agreement stipulated a minimum order of 500 units per year on a take-or-pay basis for two years with an option to extend to a third year. The total sales value of the transaction was estimated to be in excess of EUR20 million.

Unfortunately, SI has reneged on the agreement reached in November 2013 as they have not made the upfront payments. This is a major setback for the Company as it had made significant financial investment in order to gear up its production to meet the sales order. Whilst dialogue between CFCL and SI continues, the Board has taken the decision that it is unlikely that SI will honour the agreement.

Partly as a consequence of SI's payment default, the Company has had to review the finances it has at its disposal. The Board has approved a fundraising of at least GBP3 million pounds to occur during March 2014, GBP1 million of which will be contributed by the Company's Chairman, Alasdair Locke. Discussions with prospective parties are significantly advanced and further details of the capital raise will be announced to the market in the near future. This capital raise will require approval by Shareholders at an Extraordinary General Meeting. Depending on the amount of capital raised and the success of both the Company's sales programme and its restructuring activities, a further capital raise is likely to be required in the second half of CY2014.

The Board is in the process of restructuring the Company with a view to altering its direct sales strategy and removing significant cost from the operations. It is also pursuing joint venture possibilities with partners who are willing to pay for the Company's technology in order to produce systems of differing output.

On 28 February 2014, the Company received an order for 100 BlueGEN units, for delivery within the next twelve months, from the German company Avilos GmbH ("Avilos"). Under the terms of the agreement, Avilos will purchase 100 BlueGEN units on a take-or-pay basis and sell them to private and small commercial customers. Avilos had previously signed up as regional, non-exclusive BlueGEN distribution partner and have received formal training in sales and installation from CFCL.

Avilos has locations both close to Munich (Southern Germany) and in Bremen (Northern Germany) and provides energy solutions for residential buildings and small commercial businesses. Based on the combination of fuel cells, PV solar systems, heat pumps and batteries, Avilos has developed intelligent energy management systems to offer customers a high level of self-sufficient power supply.

No other matter or circumstance has arisen since 31 December 2013 which has significantly affected, or may significantly affect:

Ceramic Fuel Cells Limited receives order from Avilos for 100 BlueGEN units Monday 3 March 2014

RNS Number : 3136B

Ceramic Fuel Cells Limited

03 March 2014

Market

Announcement

Monday 3 March 2014

CFCL receives order from Avilos for 100 BlueGEN units

On 28 February 2014, the Company received an order for 100 BlueGEN units, for delivery within the next twelve months, from the German company Avilos GmbH ("Avilos"). Under the terms of the agreement, Avilos will purchase 100 BlueGEN units on a take-or-pay basis and sell them to private and small commercial customers. Avilos had previously signed up as regional, non-exclusive BlueGEN distribution partner and have received formal training in sales and installation from CFCL.

Avilos has locations both close to Munich (Southern Germany) and in Bremen (Northern Germany) and provides energy solutions for residential buildings and small commercial businesses. Based on the combination of fuel cells, PV solar systems, heat pumps and batteries, Avilos has developed intelligent energy management systems to offer customers a high level of self-sufficient power supply.

-End-

Resignation of Director Dr Peter Binks Ceramic Fuel Cells Limited Monday 3 March 2014

RNS Number : 3137B

Ceramic Fuel Cells Limited

03 March 2014

Market

Announcement

Monday 3 March 2014

Resignation of Director - Dr Peter Binks

Ceramic Fuel Cells Limited announces the resignation of non-executive director Dr Peter Binks.

He has confirmed his intention to pursue other activities and his resignation applies with immediate effect.

The Board wishes to thank Dr. Binks for his contribution to the company's activities and wishes him well forthe future

-End-

How to obtain Feed in Tariff (FIT) payments for a grid connected Powerspout installation in England or Wales

How to obtain Feed in Tariff (FIT) payments for a grid connected Powerspout installationin England or Wales

Date written:! December 2013
Written by: ! Bill Cave

Context:

The legislation applicable to FIT accreditation for micro hydro in England and Wales has changed
repeatedly and is likely to change further in the future.
As of 1 December 2012, the route to accreditation for hydro installations of all sizes was taken out
of the Micro-generation Certification Scheme (MCS) and replaced by the ROOFIT (Renewables
Obligation Order Feed in Tariff) mechanism.
This change meant that Powerspout turbines, which had never gained accreditation under MCS
and were therefore formerly precluded from being eligible for FITs, no longer had to be accredited
in this way to be eligible.
The change also meant that a Powerspout can now be installed by anybody, and does not have to
be put in by an MCS accredited installer.
Most people putting in a Powerspout will be mindful that their installation ought to have permission
for water abstraction from The Environment Agency (in England) or Natural Resources Wales (in
Wales).
Additionally, most schemes will require Planning Permission (from the local council or National
Park, if within one) even though no building to house the Powerspout is anticipated.
The thing to know about all these permissions is that at no point in the application process to
Ofgem (Office of the Gas and Electricity Markets Authority) for accreditation for FITs do you have
to say whether you have obtained planning approval or permission for water abstraction. Strange,
but thatʼs the way it is, at least at the date of writing. So if you choose to do your scheme “below
the bureaucratic radar”, you can still apply for FITs.
To do everything “above board”, the following are the steps required, but they can be done
retrospectively, after you have installed and commissioned your turbine, though you might be
made to make alterations if what you have done does not meet their requirements:

1. Abstraction / water impoundment licence, including meeting fisheries conditions
2. Planning permission for abstraction site, pipeline and turbine site
3. Notification to the District Network Operator (DNO) within 28 days of connecting to the grid
4. Application to OFGEM for accreditation for FITS under the ROOFIT mechanism
5. Application to your chosen FIT licensee (usually the company supplying your grid energy) by
providing them with the accreditation number given you by OFGEM.

The timing of these steps is: 1, 2 and 4 can be done concurrently, 3 MUST be done within the time
scale given, for safety reasons for power line workers, and 5 can only be done when 4 has been
granted.

So my “How to” steps for dealing with just the OFGEM stage are as follows, and these can be
found hidden, mostly, in the official guidance, version 6, on the OFGEM website here

1. Set up your Ofgem account at https://www.renewablesandchp.ofgem.gov.uk/ At your first visit to
the web site, donʼt bother to enter a username and password. Just click on “register” and you
will be led through forms to enter your account details. Once you have registered, you can go to
your account at any future time directly from the login page, using the username and password
you set up when registering, then clicking on “go”. Donʼt click on “register” again which is very
near to “go”.

2. You will now need to fill in multiple questions regarding your Powerspout installation by clicking
on Accreditation > Apply for new accreditation. There are a lot to answer. You donʼt have to do it
in one sitting. You can log out and come back to it. At each visit save what you have entered but do not submit it until all the questions have been completed and you have ready for uploading
all the information (as attachments) they request.

3. Most questions are self explanatory. TIC and DNC can however be confusing. For a
Powerspout connecting to the grid via an inverter, which itself consumes some of the generated
power, TIC (total installed capacity) is the power into the inverter. This will be the figure the
EcoInnovation Powerspout calculator gave you for “power to your shed”, - so long as your
installation doesnʼt have too many inefficiencies to detract from the calculated figure, and so
long as your figures entered to the calculator were correct.

4. DNC (declared net capacity) is the TIC less the power consumed by the inverter, so it is the
power out from the inverter to the grid. The inverter display, whilst not being totally accurate, will
give an acceptable figure for DNC. It will usually be 50 to 100 watts less than TIC. For my
scheme the TIC was entered as 0.8 kW and the DNC as 0.75kW.

5. The figures for TIC and DNC are based on the electrical power generated at the maximum
water flow you anticipate operating your Powerspout on continuously. Since you can actually
make use of more water when it is available, simply by putting in bigger nozzles, deciding what
is the maximum flow, and by extension what the TIC and DNC are, becomes a rather theoretical
exercise of plucking a maximum flow figure from thin air. But you have to choose a figure,
because TIC is a very important parameter for Ofgem. Choose a figure and stick with it. Donʼt
lose sleep if it may not be the all time maximum you ever get continuously from your installation.

6. QF154 asks for the MPAN (Meter Point Administration Number) of your electricity meter. This,
in its full form, is a 21 digit number but you only need to put in the terminal 13 digits. You can
often find it on your electricity bill or if not there, ask your electricity supplier to give it to you.

7. QF528 asks about how exported electricity will be measured. You will be unlikely to have an
export meter (you will just have a generation meter) so the answer is “it will be deemed”. Later
on when you apply to your FIT licensee (the company who actually pays you) the accepted rate
for hydro deeming is 75% of total generation. This is very good news because a Powerspoutʼs
output will always be so low that almost all you generate will be used in the house, but
nevertheless youʼll get paid export tariff (in addition to the generation tariff) for 75% of what you
produce.

8. QI100 asks you to provide a single line, schematic drawing of the generating station. This
should conform to the specification laid out on page 22 of the G83/2 document found here, and
this will have been the same diagram you will have needed to submit to your DNO (District
Network Operator) informing them that you have connected to their grid. You will also have to
display this diagram in your utilities meter box so their workers are informed that there is an
SSEG (small scale embedded generator) at this address.

9. After you have finally completed all the questions and attached any supporting documents to be
uploaded with the completed questionnaire, you can submit it. Within 24 hours you will get back
a “Receipt of accreditation application” by email. This will confirm the date you entered
under QF461, your eligibility (sometimes called effective) date. It is the date which, when your
application is finally successful some 6 months down the line, marks the start of when you can
claim FITs payments from. You will have entered under QF460 what your meter reading was on
this date, so no matter how long OFGEM take to process your application, when it comes
through, you will get paid from that date.

10.Ofgem operates a 3 stage review process and it takes time. You will receive ʻqueriesʼ about
your application as it moves through the stages and you are notified of these by email but you
have to log in to your Ofgem account to deal with them. For me they asked for independent
confirmation of TIC. After some to-ing and fro-ing, they eventually found satisfaction in my
How to obtain Feed in Tariff (FIT) payments for a grid connected Powerspout installation
in England or Wales
submitting a copy of EcoInnovationʼs Calculator for my site, which had to have the site name
referenced at the top, and a supporting email from Michael Lawley, as the manufacturer,
confirming the accuracy / truth of the figures.

11.They may also ask for a copy of the G83 test figures obtained by the installer at the time of
commissioning. If you installed and commissioned the scheme yourself, this request can
appear daunting as you will not have done these tests. But the question has been asked
because the Ofgem reviewer has not properly understood the kind of hydro a Powerspout is,
and that is because there are not many of them around. These G83 tests really only apply to
hydro sites which generate at mains voltage and connect directly to the grid (Type B installations
in G83 parlance). Since a Powerspout generates a dc voltage and interfaces with the grid via
an inverter (Type A installations), the G83 regulations only require that the test results for the
inverter be supplied. Inverters are allowed to be “type tested” in factory and it is sufficient to
supply Ofgem with the signed and dated type test certificate for your inverter. For an SMA
SunnyBoy 1200 inverter, this is available here. Essentially, the legislation surrounding the
commissioning of a Powerspout is no different from that for photo voltaic installations, except
that PV FITs applications pass through the MCS route, not the ROOFIT route. But take note
that this similarity to PV will mean that you must have a qualified electrician to do the final wiring
and sign off your grid connection as being compliant with Regs 4 & 7 of the Building Regs 2010
for England and Wales. Any electrician who regularly does PV grid connections can do this for
you. The certificate he supplies will be one of the documents you will have to upload to Ofgem
as an attachment.

12.A word about G83 regulations because they are changing. G83 is the industry standard which
defines the requirements of electrical equipment that interfaces an SSEG (small scale
embedded generator) with the grid. The original document, G83/1, which was amended in June
2008 to become G83/1-1, has been superceded now by G83/2. This was issued in December
2012 but only comes into force fully on 1 March 2014. This ʻgrace periodʼ was in recognition
that equipment manufacturers require time to implement the changes incorporated in G83/2.
What it does mean, if you are installing your Powerspout after 1 March 2014, is that you must
have an inverter which is G83/2 compliant, not just G83/1-1 compliant. Beware suppliers offloading
old stock cheaply which you will not legally be able to use. You can read about the
essential differences between G83/1-1 and G83/2 here. Full details of G83/2 can be found
under the link in 7 above.

13.The process of applying for Ofgem accreditation can be exasperating. They are not quick.
Sending a polite enquiry asking where your application has got to in their system seemed to get
results each time I did it, - but I needed to do it repeatedly. Applying for planning permission and
an abstraction licence at the same time as your Ofgem accreditation can make you go bananas.
But stick at it. Bureaucracy is there to be defeated and it is great when you win through ! You
will get an email headed “Confirmation of FIT accreditation”.


For details and a quotation call: +44(0)845 567 7080
Or Email: info@windtrap.co.uk

TANGIERS PETROLEUM LIMITED Notice of Change of Interests of Substantial Holder for Jacka Resources

25 February 2014 
 
                          TANGIERS PETROLEUM LIMITED 
 
    Notice of Change of Interests of Substantial Holder for Jacka Resources
 
Tangiers Petroleum Limited ("Tangiers" or the "Company") advises that in 
relation to the announced Recommended Takeover Offer by Tangiers for Jacka 
Resources Limited ("Jacka"), in accordance with section 671B(1)(c) of the 
Corporations Act 2001, a Notice of Change of Interests of Substantial Holder 
(Form 604) has been lodged with ASIC and the ASX and is available from the 
Company's website. This notice sets out that as of 25 February 2014, Tangiers 
(on behalf of itself and each of its controlled entities) holds 29,153,523 
shares in Jacka, representing 8.68% of Jacka's issued capital. 
 
ROBERT DALTON 
Joint Company Secretary 
 
Tangiers Petroleum Limited 
Level 2, 5 Ord Street 
West Perth WA 6005, Australia 
Ph: + 61 8 9485 0990 
www.tangierspetroleum.com 

Ceramic Fuel Cells Limited Synergy International contract update

RNS Number : 4940A

Ceramic Fuel Cells Limited

20 February 2014

Market

Announcement

Thursday, 20 February 2014

Synergy International contract update

On 28 November 2013, Ceramic Fuel Cells Limited ("CFCL" or the "Company") announced the award of an order of 1,000 BlueGen units from Synergy International OÜ ("SI"), an Estonia distributor.

The contract was for the delivery of a minimum of 500 units in 2014 and a further 500 units in 2015. The contract was secured on the basis of a cash prepayment from SI for the first 500 units to be delivered in 2014. Initially, the funds were due to be received by CFCL on or before the end of December 2013 although it was subsequently agreed by CFCL and SI to extend this payment date to 18 February 2014.

As of 19 February 2014 no prepayment has been received and CFCL must therefore confirm that SI are now in breach of the contract.

We are continuing to communicate with SI and it is unclear as to why this prepayment has not been honoured. At this time the Board of CFCL feel it is highly unlikely that the prepayment is going to be received in the near future.

Consequently the Company is currently exploring other options with a view to securing ongoing support for ourbusiness activities.

-End-

Ceramic Fuel Cells Limited ACN 055 736 671 (ASX Code: CFU) - Cleansing notice given

RNS Number : 5082W

Ceramic Fuel Cells Limited

30 December 2013

Market

Announcement

Monday 30 December 2013

The Manager

ASX Market Announcements Office

Ceramic Fuel Cells Limited ACN 055 736 671 (ASX Code: CFU) - Cleansing notice given under section 708A(5)(e) of the Corporations Act 2001 (Cth)

Section 1 - Background

As announced on 4 December 2013, Ceramic Fuel Cells Limited ACN 055 736 671 (Company) made an offer to existing eligible shareholders of the Company in Europe (Shareholders) to subscribe for up to 193,542,793 new fully paid ordinary shares in the capital of the Company (Shares) at 2.14 pence per share to raise a maximum of EUR5 million (approximately A$7.44 million) (Overseas Offer).

The Company received applications from Shareholders totaling EUR1.04 million (approximately A$1.6 million) under the Overseas Offer, and issued 41,134,062 Shares (Overseas Offer Shares) on 27 December 2013 to those Shareholders from whom applications were received.

The Overseas Offer Shares were issued by the Company without disclosure to investors under Part 6D.2 of the Corporations Act 2001 (Cth) (Act). Accordingly, the Company gives this notice under section 708A(5)(e) of the Act. As required by section 708A(6)(a) of the Act, this notice is given to the ASX within 5 business days after the day on which the Overseas Offer Shares were issued by the Company.

As at the date of this notice, the Company has complied with the provisions of Chapter 2M of the Act as they apply to the Company and section 674 of the Act.

To the extent to which it is reasonable for investors and their professional advisors to expect to find it in a disclosure document, Section 2 contains all information as at the date of this notice:

1. that has been excluded from a continuous disclosure notice to be given to the ASX in accordance with the ASX Listing Rules; and

2. that investors and their professional advisers would reasonably require for the purpose of making an informed assessment of:

a. the assets and liabilities, financial position and performance, profits and losses and prospects of the Company; or

   b.    the rights and liabilities attaching to the Shares. 

Other than as set out in Section 2, there is no information as at the date of this notice:

1. that has been excluded from a continuous disclosure notice to be given to the ASX in accordance with the ASX Listing Rules; and

2. that investors and their professional advisers would reasonably require for the purpose of making an informed assessment of:

a. the assets and liabilities, financial position and performance, profits and losses and prospects of the Company; or

   b.    the rights and liabilities attaching to the Shares. 

This cleansing notice is important and should be read in its entirety.

Section 2 - INFORMATION EXCLUDED FROM CONTINUOUS DISCLOSURE NOTICES

On 28 November 2013, the Company announced that it had appointed Synergy International as its distributor for the Baltic States and Scandinavia. Under the terms of the agreement, Synergy International was to pay for 50% of the first 500 units by the end of December 2013. The Company has been working through the formal banking process with Synergy International and its bankers, which has been delayed due to the current holiday period. The payment is now due by the end of January 2014 and the agreement has been amended accordingly.

Other than the above, there is no additional information.

...............................................

Bob Kennett

Managing Director