Progress update

Clean Energy Brazil PLC 16 January 2007 Clean Energy Brazil plc ('CEB' or 'the Company') Progress Update Following Recent IPO Clean Energy Brazil plc, a company with a mandate to invest directly into Brazil's sugar and ethanol industry, is pleased to update shareholders on the progress of its initial proposed investment in Usaciga Acucar, Alcool e Energia Eletrica Ltda.('Usaciga') and other projects. Usaciga In the short time since the Company's successful admission to AIM in December 2006, CEB and its Investment Adviser, Temple Capital Partners, have made good initial progress in implementing the development plans for Usaciga including the broadening of the operational management team under the specific guidance of Marcelo Junqueira, a director of CEB and CEO of Agropecuaria Orlando Prado Diniz Junqueira ('Agrop'), CEB's agronomy and agricultural service provider. The Directors of CEB are also pleased to note the recent heavy rainfalls which will be beneficial to the sugar cane crop in the forthcoming growing season. With respect to the development of the cogeneration electricity plant at Usaciga, work continues to progress to complete the plant in line with current business plans. Once complete this will enable Usaciga to supply surplus electricity to the electricity grid under the national Proinfa Agreement established to encourage the development of cogenerated electricity in Brazil. The Brazilian Government recently authorised Electrobras, the state electricity company, to extend the date by which certain cogenerated plants are required to become operational and therefore asked for revised documentation to be submitted to Electrobras. Usaciga duly submitted the relevant documentation. The directors of CEB have authorised an initial subscription of $12 million in Usaciga in connection with CEB's stated intention to make a total equity investment of $137 million (as more fully described in the Company's recent Admission Document). For the protection of investors, the terms of this subscription include the right to put the shares subscribed for onto the Barea family (the majority shareholder of Usaciga) at the subscription price in the unlikely event that the joint venture does not conclude. The planned consents required to be obtained to enable the establishment of the joint venture holding company in which it is intended CEB will ultimately hold a 49 per cent indirect interest, described in the recent Admission Document, are now being actively progressed. As with all such consents, the timing of receipt of the final approvals rests with the various state authorities. A further update will be provided in due course. Overall the Directors of CEB continue to be very encouraged by the opportunity afforded by the Company's investment in Usaciga. Other Projects The Company has substantially completed preliminary legal due diligence on the proposed greenfield investment in Pantanal Agroindustrial Ltda. ('Pantanal') and is now finalising documentation with its investment partners. Further announcements regarding Pantanal will follow. The Company is progressing with the application for an environmental licence with respect to the Agua Limpa sugar cane greenfield distillery and expects to receive this licence in due course. In addition Usaciga has entered into a preliminary agreement to develop a further greenfield project in Parana State, of approximately 25,000 hectares, which is expected to crush up to 2 million tonnes of sugar cane per annum when completed. The Directors believe that this greenfield project, if undertaken, would have particular synergies with the existing Usaciga operations. Enquiries: Temple Capital Partners Peter Thompson 020 7972 6629 Numis Andrew Dawber 020 7776 1500 Tom Frost David Shapton College Hill Peter Pantlin 020 7457 2020 Paddy Blewer This information is provided by RNS The company news service from the London Stock Exchange