CEI Receives Funding.

BETSY LAYNE, Ky. -- Consolidated Energy, Inc. (the "Company") (OTCBB:CEIW) announced today that the Company received the planned additional investment of $4,750,000 from Gryphon Master Fund, L.P., GSSF Master Fund, L.P., Renaissance US Growth, and other investors, which will allow the Company to construct the planned coal preparation facility and to complete a slope construction project which began in the first quarter of 2005. The Company stated that these proceeds will be used to position the Company to be able to perform on two existing coal contracts which have an aggregate sales value when fully executed of over $173,000,000.

The Company also announced that via its wholly owned subsidiary, Eastern Consolidated Energy Inc., it began coal production in the underground mine, Alma-seam operation at Warfield, Kentucky. Currently the Company has activated two production shifts and one maintenance shift in one working section in the Alma seam.

The Company further announced that it obtained an extension of time for the option to purchase the 20% working interest in the Alma mine at Warfield, Kentucky. This purchase option, which has been extended until March 31, 2006, will, when exercised, provide the company with 100% ownership of the Warfield mine. The Company intends to work with the 20% working interest holder in an attempt to acquire this interest in the near term.

The Company announced that its wholly owned subsidiary Morgan Mining Inc., began shipping coal from the surface operation at Pasture Fork in Morgan County, Kentucky.

Mr. Guthrie, president of Consolidated Energy Inc., stated, "I am extremely encouraged to see the operating plans of the Company coming to fruition." He also was encouraged by the confidence shown by the lenders who invested the $4,750,000. Mr. Guthrie also stated that he "looks forward to the completion of the slope construction and completion of the coal washing facility. The completion of these two major projects will allow the Company to begin shipping a washed, quality product." Mr. Guthrie added that the Company expects that the slope project will be complete by the third quarter of 2005. The Company also expects that the wash plant will be complete at the end of third quarter or the beginning of the fourth quarter, 2005.

About Consolidated Energy, Inc.

Consolidated Energy, Inc. is engaged in coal mining operations, gas and oil exploration and development, and development of related clean energy technologies that are environmentally friendly. The Company's main business focus is operating its mining subsidiary, Eastern Consolidated Energy, Inc., to achieve the successful development of a profitable coal mining operation in eastern Kentucky. The Company has also begun operations through its gas and oil subsidiary, Eastern Consolidated Oil & Gas, Inc. The Company is also engaged in the development, implementation and distribution of a clean-coal technology that it hopes will provide an improved and environmentally friendly form of coal that can be cost effectively employed in all utility, industrial and commercial domestic and international markets.

Forward-Looking Statements 

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Actual events or results may differ materially from those in the forward-looking statements as a result of various important factors, including those described in the Company's most recent filings with the SEC. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. The business and operations of the Company are subject to substantial risks, which increase the uncertainty inherent in forward-looking statements. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements.