Finally got a full copy of the Flying Scale Models magazine Jan 2010. So the actual build article is easier to see (than the scans sent to me) but also has a section on CIII history and pictures .
In Gary's build pictures (no.21) it shows he's routed exhaust through the fuse and exits starboard side somewhere around lower wing trailing edge. Says he uses a Briggs and Stratton muffler (which I think is converting something from a garden engine for use)
As it happens I have a similar 'pipe' that came off a super tigre 3000 I purchased, which may allow (with a bit of bending n' thump'n) similar set up. I'm tempted though to try and make the scale exhaust functional - although it almost certainly means gunk over top wing (assuming it can throw it up that far)
The most practical choice would be arrangement where exhaust goes straight down to exit under fuse floor. But I think engine bearers will prohibit this.