Evergreen Energy Inc.

Corporate Presentation

February 2009

Converting the world’s abundant coal reserves into clean, efficient,

affordable energy.

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Presentation Topics and OutlinePresentation Topics and Outline

Evergreen Energy Overview K-Fuel® Technology K-Fuel® Benefits Enhanced Design Plant Options

Terminal Mine Mouth K-Direct®

K-Fuel® Economics Business Structure Options

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Evergreen Energy Inc. Overview

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Company OverviewCompany Overview

Evergreen Energy Inc. was founded in 1984 (formerly known as KFx)

Evergreen is publicly traded on the NYSE Acra: EEE

Evergreen consists of three separate businesses:

1. Evergreen Energy provides coal upgrading through its patented K-Fuel® process

2. C-Lock Technologies Inc., a subsidiary of Evergreen, provides carbon information management through GreenCert™, a web-based management tool for agriculture and energy that allows precise and accurate green house gas emissions measurement

3. Buckeye Industrial Mining Company, a wholly owned subsidiary of Evergreen, mines high quality bituminous coal in Central and North Appalachia

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Evergreen – A Compelling StoryEvergreen – A Compelling Story

Favorable price spread between low and high-rank coals High-rank coals are in short supply Increasing environmental regulations increasing the cost burden

for burning low-rank coals Potential tax credits (Section 45) improve economics

Attractive economics

Large untapped markets

End user (utilities) benefits

Better fuel sourcing flexibility: ability to source coal anywhere and refine on site reducing utility’s dependency on rail system

Reduces need for retrofits/installation of post-combustion control equipment

Increases boiler efficiency; reduces operating expenses Meets tightening environmental standards (SO2, NOx, Hg)

Approximately 300 coal fired units in US providing 54 GW of electricity will not be installing any advanced controls by 2020

Compelling international market – Asia, Eastern Europe Large low-rank coal reserves Energy security Environmental regulations

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Evergreen – A Compelling Growth Story (Cont’d)Evergreen – A Compelling Growth Story (Cont’d)

Proven technology and process

High barriers to entry

High caliber, proven

management team

Only commercially proven process for coal refining Proven Sasol-Lurgi commercial equipment Repeatable process provides consistent product

Patented process design Evergreen owns 30+ case patents in approximately 40

countries Tremendous coal technical/industry expertise

Refining, gasification, liquefaction

Proven ability to formulate innovative strategies and successfully execute

Track record of developing and implementing new technology Financial discipline and management of capital intensive

projects for maximum returns Experience building and growing companies

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K-Fuel® Technology

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Evergreen’s patented technology uses an integrated, computer-controlled process that precisely applies TIME, HEAT, and PRESSURE to upgrade and enrich low rank coals

Screen “Cook” Cool Condition

WWT Steam

P+ P-

K-FuelK-Fuel®® Technology Technology

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K-Fuel® Technology - Simplicity of Design

Non-Condensable Gas

Process Water To Treatment

K-Fuel® Product

Steam Condensate

Steam From Boiler

Coal Feed

Cooling Water In

Cooling Water Out

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K-Fuel® – The Technology Evolution

Developed partnership with Bechtel Power Corporation to provide long-term engineering, design, and construction support

Primary goal of Bechtel is to build K-Fuel® refineries that are commercially robust

Bechtel Power design efforts are focusedon process improvements and technology upgrades

Process/Technology Verification

(60+) low rank (i.e. sub-bituminous and lignite) coal feed stocks have been successfully tested and upgraded resulting in substantial increases in HV

International coal feed stocks tested and upgraded have included coals from Inner Mongolia, Indonesia, and Russia

Test burns at multiple power generation facilities in the U.S. have been successfully completed using K-Fuel® resulting in increased combustion efficiencies

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K-Fuel® - First Large-Scale Coal Refinery

First large-scale K-Fuel® refinery commissioned at Ft. Union, Wyoming, US in December, 2005

Plant ACHIEVED all four of its goals:1. produce K-Fuel® under commercial

conditions

2. correlate bench scale data with commercial scale performance

3. produce K-Fuel® to meet customer specifications

4. provide testing ground for process flow and equipment/technology improvements

Plant shutdown March 2008 to focus on development of commercial facilities domestically and internationally

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K-Fuel® Benefits

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K-FuelK-Fuel®® Value-Added Product Benefits Value-Added Product Benefits

K-Fuel® Upgrading Technology increases the efficiency and heating value of sub-bituminous and lignite coals 30% on average by decreasing moisture content by 20% - 25%

K-Fuel® Upgrading Technology makes low rank coal reserves marketable.

K-Fuel® reduces combustion energy requirement

K-Fuel® improves efficiencies of post-combustion environmental controls

Desirable price spread exists between lower mining cost of low rank coal and higher Kcal prices

Economic

Environmental

Reduced Hg

Reduced chlorides

Improved efficiency may result in:

Reduced SO2

Reduced CO2

Reduced NOx

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K-Fuel® Properties

K-Fuel® is generally characterized by the following analytical properties compared to the raw feed coal:

Lower Total Moisture Lower Equilibrium Moisture Higher Heating Value (kcal/kg) Lower Volatiles Higher HGI (easier to grind)

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K-Fuel® Changes the Characteristics of the Coal

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K-FuelK-Fuel®® Upgrade – Powder River Basin Coal Upgrade – Powder River Basin Coal

Origin

As Received K-Fuel®

Moisture

(%)

Heating Value

(btu/lb)

Mercury

(lb/Tbtu)

Equilibrium Moisture

(%)

Heating Value at EQM

(Btu/lb)

Mercury

(lb/Tbtu)

Black Thunder 26.44 8,804 15.78 15.40 10,846 3.75

Coal Creek 27.46 8,547 0.92 14.73 10,256 0.27

Buckskin Cajun Blend

28.41 8,325 12.90 13.90 10,430 3.11

Ft. Union Canyon 26.81 8,222 6.81 16.63 10,188 2.00

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K-Fuel® Upgrading – Indonesian Coal

Physical Property of Coal Feed Coal Value K-Fuel®ValueEQM (wt %) 39.4 14.6

Equilibrium HV

(kcal/kg)3,665 5,665

Hardgrove Grindability 62 61

Friability Index (%) 9 19

Hg (ppm) 0.023 0.009

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Process ConsistencyProcess Consistency

Heating value of PRB feed coal and K-Fuel® product

10500975090008250750067506000

0.0025

0.0020

0.0015

0.0010

0.0005

0.0000

BTU/ lb

Norm

aliz

ed F

requency

8108 305.6 302

8063 305.3 264

8140 227.9 40710195 379.3 226

10077 356.3 390

Mean StDev N

Raw Feedstock

Raw -1/4"Raw Screened Coal

Rehydrated K-Fuel®

Rehydrated & Dust Treated K-Fuel®

Sample Point

Histogram of BTU/ lb

*post-processed data is as produced*raw data is as received

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Enhanced Design

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Enhanced Design ObjectivesEnhanced Design Objectives

Minimize Capital Cost

Minimize Operating and Maintenance (O&M) Cost

Enhance:

Plant Reliability

Plant Throughput

Product Quality

Redundancy in Design

Modularity & Scalability

Repeatable Standard Design

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Enhanced Design Improvements

When compared to the Ft. Union large-scale plant, the enhanced design has greater throughput and lower costs:

60 tons per hour capacity 37% less concrete 60% less pipe 80% less conduit 90% fewer right angle pipe

turns

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K-Fuel® Refinery Options

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Terminal Concept

Benefits of locating a K-Fuel® facility at an existing coal terminal include:

Multi-Mode Transport Systems Upgrade Multiple Low Rank Sources Access to Multiple End-Users Enlarges Economic Shipping Radius

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Mine Mouth

Benefits of locating a K-Fuel® facility at the mine include:

Negligible feedstock transport cost

Capitalize on mine infrastructure Elimination of fines disposal

issues Favorable rail contracts Transport only finished product

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K-DirectK-DirectTMTM: A Power Plant Solution: A Power Plant Solution

Benefits include: Utilize multiple feedstock

sources Sharing of infrastructure Feed K-Fuel® directly to boiler

Utilize power plant’s excess steam if available

Grow refinery capacity to meet power plant demand via modularity

K-Direct Facility

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K-Fuel® Economics

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K-FuelK-Fuel®® - Favorable Economics - Favorable Economics

High rank coals are in short supply globally causing an increase in pricing in comparison to lower-rank coals. This results in favorable economics for K-Fuel®.

Source: With permission, selected from listed prices in Platts Coal Outlook, "Weekly Price Survey." Note: The historical data file of spot prices is proprietary and cannot be released by EIA; see http://www.platts.com/Coal/.> Analytic Solutions > COALdat, or > Newsletters > Coal Outlook.

In the US, CAP and NAP coal prices have increased substantially, while PRB coals have remained relatively flat

In Asia and NW Europe the coal prices have generally been increasing since 2000

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Project Economics

Economics are site specific Develop detailed models for each potential site Models provide cash flow, NPV and IRR Key inputs into the model will include:

Business Structure Capital Expenditures Operating Expenditures Feedstock Costs K-Fuel® Price Handling and Transportation Fees Estimated Taxes Plant Capacity Energy Requirements Undersized Coal Utilization Post Processing Systems

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Capital Expenditures

CAPEX is site and project specific and is dependent on:

Power and Steam Source/Supply Synergies with Existing Infrastructure Site-Specific Environmental Requirements Site Conditions Feedstock and K-Fuel® Handling and Storage Requirements Regional Construction, Fabrication, and Labor Capabilities

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Operational Expenses

OPEX is site and project specific and is dependent on:

Raw materials Cost of Steam Cost of Electricity Waste Water Treatment Personnel and Contract Services Maintenance and Operating Supplies Transportation Lease and Tolling Fee

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Business Structures Options

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Business Structures

Joint Venture (Equity Partners) BOO (Tolling Arrangement) BOT (Build Own Transfer) Technology License