BCBN supports Diacarbon Energy’s torrefaction project

March 31, 2014, Vancouver, B.C. – The BC Bioenergy Network announced
its intention to fund 1 million to Diacarbon Energy Inc. to demonstrate its
Torrefaction Bioreactor Technology. Diacarbon will produce a renewable and
sustainable biocoal derived from wood residuals that will displace coal used by
Lafarge Canada's cement operations in B.C.

This funding by BCBN complements $1.1 million from
Sustainable Development Technology Canada and $7 million recently committed by
private sector investors and other funders, resulting in a total project
investment of $9 million. The pilot deployment follows a consortium agreement
reached with Lafarge Canada announced earlier this year.

The project involves the establishment of a fully automated
torrefaction facility, which will process wood residuals and demonstrate the
production of biomass-based solid fuels to replace coal at cement plants or
coal-fired utilities. The reduction in greenhouse gas emissions and other
pollutants as a result of fuel switching from the 25,000 tons per year plant is
approximately 52,500 carbon dioxide equivalent tons per year, or 10,500 diesel
or gasoline fossil fueled cars off the roads in B.C.

Jerry Ericsson, President of Diacarbon, announced that this
new technology follows several years of technology and product development in B.C.
where a trial demonstration plant has been in operation. "Our shareholders
have supported us and it is very gratifying to see our research and development
lead to a commercial demonstration. We are proud to be building the first
Canadian commercial biocoal facility in B.C. This is an opportunity for BC to
be a leader by showcasing clean technologies that generate economic value, a
forward thinking solution. This is just the first step in deploying
torrefaction technology in B.C."