Vega Biofuels to build torrefaction plant

Mar. 16, 2012, Norcorss, GA – Vega Biofuels recently announced plans to build a manufacturing plant
in Cordele, Georgia that will manufacture bio-coal from timber waste.
The bio-coal will be made using special technology called
"torrefaction."

The Company's plan is to begin shipping its product to customers in
Europe during the first quarter of 2013.

"This is an aggressive strategy for our company," stated Michael K.
Molen, Chairman/CEO of Vega Biofuels, Inc. "There is a tremendous
demand for our product throughout Europe. European power companies
have been mandated to cut carbon dioxide emissions by twenty percent
by the year 2020. The obvious renewable energy solution is bio-coal.
Europe's biomass resources are relatively small and unable to provide
the necessary woody biomass to meet the mandate. North America is the
prime, readily available source for certifiably sustainable and
socially responsible bio-coal. Our goal is to have equipment
installed and tested before the end of the year. This will allow us
to start shipping product during the first part of 2013. The EU has
the world's largest regional energy market and accounts for one-fifth
of the world's energy use. If we can maximize the production capacity
of our plant, we can quickly become one of the largest suppliers of
bio-coal in Europe."

Torrefaction is a partial carbonization process that takes place at
temperatures between 475 – 575 degrees 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. Existing coal-fired power plants
do not need to retrofit their existing plants to accommodate
bio-coal. Bio-coal can be processed through the existing fossil coal
handling chain.