CEI Acquires Additional Coal Reserves.

CORAL SPRINGS, Fla. -- David Guthrie, President and CEO of Consolidated Energy, Inc. (OTCBB:CEIW) ("the Company") announced today that it has acquired additional coal reserves on the Dempsey Heir Lease in the Coalburg Seam, Taylor Seam, Richardson Seam, and Broas Seam containing proven reserves of 21,530,909 tons of low sulfur, high BTU coal to be mined by surface mining methods. Production from these surface mine reserves is expected to commence by the fourth quarter of 2005 Guthrie stated. With this acquisition the Company now has an estimated 41,530,909 tons of proven reserves in Martin County, Kentucky. The Company acquired the above reserves in exchange for 2,500,000 shares of its restricted common stock.

The company, as previously announced, obtained a $7,000,000 financing on February 24, 2005. The company has initiated the scheduled surface upgrades that will accommodate the substantial increase in coal handling and storage. The company also began construction on the scheduled underground mine activity which will provide access to the Pond Creek coal seam. The company, upon gaining access to the Pond Creek seam which is expected to occur in the second quarter of 2005, will begin delivery on its $73,000,000 American Electric Power coal supply contract. The AEP contract provides for the company to deliver 40,000 tons of coal per month to the Big Sandy Power Plant at Louisa, Kentucky. A coal washing facility which is included in the planned use of financing proceeds is currently being assembled off site and when delivered and constructed on site, will be used to enhance the value of all coals being mined at Warfield.

Any statements contained in this release that are not historical facts may be considered "forward-looking statements." Forward-looking statements are based on current expectations and the current economic environment. We caution the reader that such forward-looking statements are not guarantees of future performance. Unknown risk, uncertainties as well as other uncontrollable or unknown factors could cause actual results to materially differ from the results, performance, or expectations expressed or implied by such forward-looking statements. Consolidated Energy does not undertake to update forward-looking statements in this news release to reflect actual results of and changes in assumptions or changes in other factors affecting such forward-looking information. Specifically, the planned enhancements, equipment purchases and slope construction using the financing, the implementation of increased mining production, and the activation of a coal washing facility may be subject to unforeseen delays. Because the AEP contract is dependent on the company's ability to deliver the necessary amounts of coal, any such delays may also delay anticipated revenues.