ADA-ES Announces $60 Million Equity Sale in Clean Coal Solutions, LLC Joint Venture to an Affiliate of Goldman Sachs

ADA-ES ADES today announced the sale of a 15.8% equity interest in Clean Coal Solutions, ADA's 50:50 joint venture with an affiliate of NexGen Resources Corporation, by ADA and NexGen for $60 million to GSFS Investments I Corp., an affiliate of The Goldman Sachs Group. Closing of the transaction was simultaneous with signing. GSFS's 15.8% equity interest in Clean Coal is represented by Class B Units, which are non-voting except as to approval rights on certain matters. The Class B Units entitle the holder to a targeted return of at least 15%. ADA and NexGen each received gross proceeds of $30 million at closing and ADA will receive an additional $1.8 million payment from NexGen to maintain NexGen's interest in Clean Coal. Given the 2.5% direct interest both ADA and NexGen retain in the individual entities previously formed to lease the “Refined Coal” facilities, the effective sharing ratio of net cash generated by all expected Refined Coal operations is 15% to GSFS and 85% to ADA and NexGen. Clean Coal's patented coal technology, CyClean, is a cost effective coal technology to produce Refined Coal, which reduces emissions of NOx and mercury. The American Jobs Creation Act of 2004 included changes to Section 45 of the Internal Revenue Code that incentivize the production of Refined Coal through an annually escalating tax credit, which is presently $6.33 per ton.