Vega Biofuels obtains facility in Georgia

May 9, 2012, Norcross, GA – Vega Biofuels, Inc. has announced plans for its 90,000 square foot manufacturing facility in Cordele, Georgia.

The South Georgia facility will be the new home
of Vega Biofuels. Located adjacent to the new Cordele Inland Port, the
15 acre property will house the Company's bio-coal manufacturing plant
as well as the Company's international headquarters.

"This is the ideal facility for our business," stated Michael
K. Molen, Chairman/CEO of Vega Biofuels. "We have a few more details to
complete before we can move in, but we are close enough now that we
have a good idea of what we'll be able to accomplish with this facility.
Our original design was to have one manufacturing line. This property
provides tremendous growth capabilities. Our plans now call for three
manufacturing lines to be constructed initially and two more lines
installed during our second year. The facility will accommodate a total
of nine manufacturing lines. We've had a tremendous response from all
over the world concerning our bio-coal product and this facility will
allow us to more than double our volume for year one in order to meet
the demand. We have more pictures of the plant posted on our website and
plan to produce a time lapse video as the equipment is being installed.
We'll post it on our site as well once it's completed."

The Company will work with engineering firm, Hunt, Guillot
& Associates on the construction, project management, and equipment
installation for the new plant. When completed, the facility will
produce green energy bio-coal from timber waste for use in existing
coal-fired power plants around the world.

Bio-coal is made from a process called "torrefaction."
Torrefaction is a partial carbonization process that takes place at
temperatures between 475 – 575º in a low temperature environment which
makes the physical and energetic properties of the biomass much more
comparable to traditional coal. The biomass is then compressed into
briquettes to be sold to the end user. Torrefaction has the added
benefit of reducing or eliminating undesirable volatiles, such as
nitrous oxides and sulfur dioxides and is considered carbon neutral to
the environment.

For more information about Vega Biofuels: www.vegabiofuels.com