Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On October 29, 2008, William H. Walker, Jr. informed members of the Board of Directors (the "Board") of Evergreen Energy Inc. (the "Company") of his resignation as a member of the Board effective immediately. Mr. Walker served as the non-executive Chairman of the Board since April 2008, and a member of the executive, audit, finance, compensation and governance and nominating committees since May 2008. The Company believes the reason Mr. Walker resigned is because he was displeased with the focus and pace of progress at Evergreen.

The Company has provided Mr. Walker with a copy of this document and offered him the opportunity to furnish the Company, as promptly as possible, with a letter addressed to the Company stating whether or not he agrees with the Company's statements herein and, if not, stating the respects in which he does not agree. A copy of the letter provided by Mr. Walker in response to this disclosure, if any, will be filed with an amendment to this Current Report on Form 8-K after receipt by the Company.

Although Mr. Walker did not provide a written letter of resignation and has not provided a letter in response to this disclosure, he stated "although I am displeased with the lack of focus and pace of progress at Evergreen, I intend to maintain my equity position as I believe the economic and environmental benefits of K-Fuel® and C-Lock™ will ultimately be realized by the markets."

While Board members agree with Mr. Walker that more progress on K-Fuel® production is needed, he did not offer a plan to the Board. Robert J. Clark, a current director, will assume the position of non-executive Chairman of the Board, effective immediately.

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