Press Room

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DENVER - May 08, 2008

Over the past year we have made significant progress in positioning the company to take advantage of the current opportunities that lay ahead for Evergreen’s coal upgrading process.

We know that the business backdrop for refined coal remains robust. Worldwide energy demand is growing and so is the need for more environmentally friendly and efficient ways to use the planet’s vast reserves of lower rank coal.

Coal prices at home and abroad are rising. Utilities, smaller industrial customers and other coal users need lower-cost ways to address future emissions regulations, and for users expensive post-combustion technologies are out of reach.

In this environment we believe K-Fuel® offers a compelling proposition. To cultivate our technology from laboratory to full scale, we have addressed a number of challenges, including overcoming certain operational problems at Fort Union. Our engineering teams worked closely with Bechtel Power Corporation to solve those problems and worked to improve and optimize the K-Fuel® production process. All the while, the plant continued to produce K-Fuel® that was used in numerous successful test burns for industrial, municipal and utility customers. Now our strengthened business development and engineering teams are approaching customers in our pipeline with an economic model, an efficient plant design and a product that has been tested and shipped across the country, offering a suite of supply and production solutions.

The next step, and our top priority, is developing one or more of these opportunities into a definitive construction agreement in a relatively short time, either internationally or domestically. While we do have a sense of urgency, we will be careful not to announce any projects until we are reasonably assured that they will proceed.

The question we are most frequently asked is: Is this the year when Evergreen can finally deliver on the promise of refined coal? What we can tell you is that we are working with the best teams possible and in a favorable business climate. We at Evergreen are more convinced than ever we will succeed.

As shareholders, you have maintained the faith to endure our challenges as we work to bring this technology to market. We also want to acknowledge the hard work of our employees, and the feedback, guidance and insights we have received from our customers and our board of directors. We thank all of you for your continued support while we will deliver on the promise of refined coal as an important solution for today’s energy and environmental needs.

Sincerely,

Kevin R. Collins - President and CEO

About Evergreen
Evergreen Energy Inc. refines coal into a cleaner, more efficient and affordable solid fuel that is available today to meet the growing energy demands of industrial and utility customers while addressing important environmental concerns. Visit www.evgenergy.com for more information.

Contacts:

Analysts and Investors:
Ryan Buckley
Investor Relations Supervisor
303-293-2992

Media and Public Affairs:
Paul Jacobson
VP Corporate Communications
303-293-2992
pjacobson@evgenergy.com

Statements in this letter that relate to future plans or projected results of Evergreen Energy Inc. are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended by the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), and Section 21E of the Securities Exchange Act of 1934, as amended by the PSLRA, and all such statements fall under the "safe harbor" provisions of the PSLRA. Our actual results may vary materially from those described in any "forward-looking statement" due to, among other possible reasons, the realization of any one or more of the risk factors described in our annual or quarterly reports, or in any of our other filings with the Securities and Exchange Commission, all of which filings any reader of this letter is encouraged to study. Readers of this letter are cautioned not to put undue reliance on forward-looking statements.

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