Alchemy Successfully Integrates its EPC with Fuel Cell and Creates Continuous 115v Power.

PHOENIX -- Alchemy Enterprises, Ltd. (OTCBB: ACHM) announced today that they have successfully recently operated the prototype Electric Power Cell (EPC) integrated with a hydrogen fuel cell for the first time.

During this experiment the EPC was connected to, and powered a series of 115-volt apparatus. The tests were significant in that it was the first time that the EPC had been connected to existing hydrogen fuel cell technology and produced ongoing electricity. The tests took place at the Jet Propulsion Laboratories in Pasadena during the week of July 26th with ongoing data analysis through August 12th.

"This test represents a positive step forward and proof of concept by way of our prototype," states President and CEO Jonathan Read. "Our Electric Power Cell, using magnesium, produced continuous 115v power. From this latest test, our technology is no longer considered a theory, but it is now fact. With this and the corresponding test results in hand we have begun our full scale design and build of our 100KW system."

The prototype EPC generated well over twice the hydrogen flow required for the tests. The test lasted approximately one hour and produced the required electrical load, as mandated by the test, for 33 minutes. Subsequent testing will have modified controls more accurately regulating the materials flow thereby regulating hydrogen flows for specific "on demand" characteristics. Water and Magnesium utilization profiles have been improved significantly as well due to ongoing design improvements.

The EPC uses the safe, non-toxic, and readily available magnesium as its "fuel material" eliminating the need for highly compressed tanks of the volatile hydrogen, and produces hydrogen on demand. Alchemy is completing the designing and construction a 100KW system for use in transit buses planned for the first quarter of 2007.

About Alchemy Enterprises, Ltd.

Alchemy Enterprises, Ltd. is an alternative energy company that is developing a new electric power cell technology that it believes will generate and manage electricity to power a broad range of applications, buses, and cars. Working in a research and development partnership with NASA's Jet Propulsion Laboratories, the patent-pending electric power cell technology, if developed and tested, may provide a clean, environmentally friendly, re-usable source for electric power and fuel.

For additional information please visit: www.alchemy-energy.com

Forward Looking Statement:

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the company's SEC filings. These risks and uncertainties could cause the company's actual results to differ materially from those indicated in the forward-looking statements.