Feb. 24, 2006 

HTC TO LAUNCH – CHINA OPERATIONS

Regina, Saskatchewan - HTC Purenergy is pleased to announce the signing of an agreement to open operations in China to launch HTC’s Carbon Clear Solutions. HTC Purenergy in partnership with Buckingham Group, have formed a new commercial group under the name of HTC Purenergy International. This new group will be focused on marketing and deploying HTC’s CO2 capture technologies to the coal power producers located in China.

Lionel Kambeitz, Chairman of HTC commented “With the anticipated new planned coal plants being built in China over the next 10 years and the numerous existing legacy coal power plants, we are very pleased to be in partnership with a company that has been established and successful in China. Successful market development in China requires established local partners and we have found that in the Buckingham Group.”

China is the most highly populated country in the world, with a total population of 1,297 million at the end of 2004. The economy has maintained an approximate annual growth rate of 9 percent during the past 20 years, along with an increasing demand for energy. Coal is used for the greater portion of its energy supply (67%) which is closely linked to high Green House Gas emissions. Electricity generation is one of the fastest growing sectors in China with the total installed capacity increasing from 66 gigawatts in 1980 to 420 gigawatts in 2004.

Chinese national oil companies have expressed an interest in CO2 capture technologies, and have visited the test facilities at the University of Regina and Boundary Dam. They have shown particular interest in CO 2 sequestration for enhanced oil recovery due to their declining oil production. Rising oil and gas prices are making carbon dioxide a valuable commodity for use in enhanced oil recovery (EOR) – a proven process used for over twenty years in Canada, the US and former Soviet Union. By injecting the C02 into older oil reservoirs, the oil’s viscosity is reduced and its flow rate increased. This can extend the lifetime of oil fields by decades – and with high oil prices it makes increasing economic sense to use C02 to squeeze as much oil as possible from fields which would otherwise have been abandoned.”

Jessica Zhang, Managing Director of the Buckingham Group is quoted as saying “We see strong demand for HTC’s products in China and we look forward to bringing our business experience and relationship in the power industry to successfully launch this new and exciting CO2 capture business in China”.

HTC Purenergy provides Carbon Management solutions to industry worldwide, from its head office in Regina, Saskatchewan. HTC is a public company, listed on the Toronto Stock Exchange Venture Exchange, trading as “HTC”. The latest corporate news is available on our website at www.htcenergy.com.

The TSX Venture Exchange Inc. does not take any responsibility for the adequacy or accuracy of the information contained in this news release.

For more information contact:

Jeff Allison,

HTC Purenergy

Telephone: (306) 352-6132

Fax: (306) 545-3262

E-mail: jallison@htcenergy.com

HTC Purenergy corporate developments can be followed on http://www.htcenergy.com/ and is traded under the symbol HTC