Primary Energy Recycling Announces Amendment to Harbor Coal Agreement

Amendment Reduces Risk and Financial Volatility for the Company

OAK BROOK, IL, Jan. 10 /CNW/ - Primary Energy Recycling Corporation (TSX: PRI), a clean energy company that generates revenue from capturing and recycling recoverable heat and byproduct fuels from industrial processes, announced today an agreement with ArcelorMittal to amend the contract between the two companies for their Harbor Coal joint venture.

The terms of the amendment include Primary Energy Recycling agreeing to a tolling fee reduction on the project in return for the elimination of any responsibility for operation and maintenance costs on the project going forward.

Primary Energy has incurred fluctuating annual operation and maintenance costs for the Harbor Coal project in recent years. These costs peaked at approximately $879,000 in 2008, dropped to zero in 2009 due to the low operating levels of the steel industry, and were approximately $370,000 for the first half of 2010. Management believes that annual operation and maintenance costs going forward would have tracked closer to those in 2008.

"This amendment reduces risk and financial volatility for Primary Energy by removing a variable cost that was expected to increase at a level greater than the reduction in the tolling revenue," said John Prunkl, Chief Executive of Primary Energy Recycling. "This amendment immediately creates a neutral to slightly positive impact on our financial results."

The Harbor Coal project, located in East Chicago, Indiana, utilizes waste heat for coal drying, and has the capacity to produce 110 tons per hour of dried, pulverized coal for blast furnaces. The joint venture between ArcelorMittal and Primary Energy reduces costs and improves the competitiveness of ArcelorMittal's blast furnaces by substituting pulverized coal for a significant portion of the coke, natural gas, and fuel oil used in the iron production process. The two companies are the builders, owners, and operators of the facility.

ArcelorMittal is the world's leading steel company, with operations in more than 60 countries.

About Primary Energy Recycling Corporation
Primary Energy Recycling Corporation owns a majority interest in Primary Energy Recycling Holdings LLC ("PERH"). PERH, headquartered in Oak Brook, Illinois, indirectly owns and operates four recycled energy projects and a 50 per cent interest in a pulverized coal facility (collectively, the "Projects"). The Projects have a combined electrical generating capacity of 283 megawatts and a combined steam generating capacity of 1.8M lbs/hour. PERH creates value for its customers by recycling recoverable heat and byproduct fuels from industrial and electric generation processes and converting it into reliable and economical electricity and thermal energy for resale back to its customers. For more information, please see www.primaryenergyrecycling.com.

SOURCE Primary Energy Recycling Corporation

For further information:

Chief Financial Officer
Mike Alverson
(630) 230.1314
investorinfo@primaryenergy.com
          Media and Investor Relations
Adam Peeler
416.815.0700 ext. 225
apeeler@equicomgroup.com

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