Press Room

Download the PDF version.

Evergreen Convertible Secured Notes due 2012, FAQ

FOR IMMEDIATE RELEASE:

Why is this good for shareholders?

With financing solidly in place, we can proceed with executing our business plan. We need some more time to complete the operational objectives at the Ft. Union plant and finish the basic design work with Bechtel on new plants. We’re issuing these notes to give us staying power, as we improve the Ft. Union plant, get definitive agreements signed for K-Fuel and K-Direct plants, and order long lead time items for future projects. Success in executing our business plan will hopefully allow the Company to generate sufficient cash.

The Company has the option to pay off the notes in cash which could minimize the dilutive impact from the offering.

What are you using the proceeds for?

We plan to use the net proceeds from the convertible note offering for general corporate purposes, including working capital and capital expenditures, including items for the Ft. Union plant.

How are the notes guaranteed?

At issuance, the notes will be guaranteed jointly and severally by Evergreen Operations, LLC as well as its four subsidiaries: KFx Plant LLC (our Ft. Union plant), Landrica Development Company (our Wyoming mining asset), KFx Operations LLC (our Wyoming management company) and Buckeye Industrial Mining Company (our mining, marketing and distribution company in Ohio).

Which subsidiaries are not guarantors?

The following entities are not guarantors: KFx Technology, LLC, which holds intellectual property rights relating to the K-Fuel refined coal process. Evergreen Energy International LLC and C-Lock Technology Inc. are not included, nor are any project entities created in connection with K-Fuel or K-Direct projects.

What kind of release is there for the guarantors?

If the closing price of our common stock for at least 20 trading days in any 30 consecutive trading day period is at least 130% of the conversion price per share, or $6.83 per share, on each such trading day, then the guarantors will be irrevocably released from the obligations under their guarantee, the first-priority security interests in the collateral will be irrevocably released, and we will no longer be subject to certain restrictive covenants relating to indebtedness, liens, restricted payments and asset sales, and the notes will become subordinated to all our existing and future senior indebtedness.

How can the Company then redeem the notes?

Under the circumstances described above, the Company may then redeem the notes at a redemption price payable in cash, stock, or a combination thereof equal to 100% of the principal amount, plus any accrued and unpaid interest and an additional “coupon make- whole payment.”

About Evergreen

Evergreen Energy Inc. (NYSE Arca: EEE) 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.

Forward Looking Statements

Statements in this news release 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 Report on Form 10-K, or in any of our other filings with the Securities and Exchange Commission, all of which filings any reader of this news release is encouraged to study. Readers of this news release are cautioned not to put undue reliance on forward-looking statements.

Contacts:

Analysts and Investors:
Karli Anderson
Director of Investor Relations
303-293-2992

Media and Public Affairs
Paul Jacobson
VP Corporate Communications
303-293-2992

Home

About Evergreen and K-Fuel®