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ADA-ES Provides Year-End Update

ADA-ES, Inc. (NASDAQ:ADES) (“ADA”) today announced that Clean Coal Solutions, LLC (“Clean Coal”) has successfully met its previously stated goal of installing and operating a total of 26 new Refined Coal (“RC”) facilities in 2011. Clean Coal, ADA’s joint venture with an affiliate of NexGen Resources Corporation and an affiliate of The Goldman Sachs Group, Inc., is marketing two different technologies, CyClean and M45, both of which reduce emissions of NOx and mercury, and qualify for IRS Section 45 tax credits of over $6.33 per ton of coal.

The tax extensions passed in December 2010 by Congress provided ADA with a 12–month window ending December 31, 2011 in which to market, design, fabricate, and install new facilities to produce RC. Clean Coal has vastly exceeded its initial goals by installing and operating 26 new RC facilities, including both CyClean and M45 technologies. The Company believes that the initial operations conducted at all 26 facilities satisfy the “placed-in-service” requirements, meaning that they are qualified to produce RC and generate IRS Section 45 tax credits for the next 10 years.

After the initial “placed-in-service” requirements are met, it takes an average of approximately six months to obtain permits for full-time operation, secure necessary approvals from Public Utility Commissions, and negotiate and complete all necessary contracts. With two existing RC facilities, and 26 new facilities, Clean Coal will have the capacity to produce a total of more than 40 million tons of RC per year. By the end of 2012, ADA expects to be generating pre-tax income of up to $50 million per year after payments to minority partners for the remaining life of the tax credits. Cash flows from the first few new facilities are expected to begin in the first quarter of 2012.

Mercury and Air Toxics Standard

On December 21, 2011, EPA announced the Mercury and Air Toxics Standard (“MATS”) which will require over 1200 coal-fired power boilers to reduce emissions of mercury and other hazardous air pollutants. The mercury emission limit of 1.2 lb/TBtu will require capturing 80% to 90% of the mercury from the burning of coal. ADA has three different technologies capable of meeting this limit: Activated Carbon Injection (“ACI”) systems; Enhanced Coal; and RC.

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