Last updated on April 18, 2014 at 15:19 EDT

CO2 Solutions to Receive $500,000 for Alberta Oil Sands Project

October 31, 2012

Grant contribution from Climate Change and Emissions Management
Corporation moves technology forward to mitigate carbon emissions from
oil sands production

Outstanding Shares: 79,187,836

QUEBEC CITY, Oct. 31, 2012 /PRNewswire/ – CO(2) Solutions Inc. (TSX-V:CST), an innovator in the field of enzyme-enabled
carbon capture technology, today announced that it has been selected to
receive up to $500,000 in grant funding from Alberta’s Climate Change
and Emissions (CCEMC) Corporation. The funding will be applied to a
12-month project to optimize the Company’s technology for the efficient
capture of CO(2) emissions from oil sands production, which is the single fastest
growing source of carbon emissions in Canada.

The project, budgeted at $1.8 million, will see CO(2 )Solutions’ technology customized and tested in a large bench-scale pilot
for the low cost capture of carbon emissions from natural gas
combustion in the Alberta oil sands. The emphasis will be to apply the
technology to in-situ oil extraction methods such as Steam Assisted
Gravity Drainage (SAGD). The balance of the project’s costs ($1.3
million) will be funded by CO(2) Solutions and partnership capital from private and public entities.
Management intends to disclose these entities when ongoing negotiations
are finalized.

As a further step towards commercialization, CO(2) Solutions plans to subsequently test the technology in a larger field
pilot at an oil sands facility operated by a major producer in Alberta.

Unconventional oil production from the oil sands is the subject of
concern by some groups due to its higher overall carbon footprint
compared to conventional oil production. As such, both industry and
government are focused on ways to reduce emissions from the oil sands,
with carbon capture and storage (CCS) being a mitigation option of
significant interest.

However, the cost of CCS can be prohibitive to its broad commercial
deployment. Due to its relatively low capital and operational costs,
CO(2) Solutions’ enzymatic technology is well positioned to solve this

“We are excited to embark on this project, which will highlight our
technology’s utility for this important market,” stated Glenn Kelly,
President and CEO of CO(2) Solutions. “We thank the CCEMC for its support and recognition of the
potential of our technology to cost effectively solve a critical
environmental challenge facing the oil sands.”

Further information related to the project and CCEMC’s announcement is
available at www.ccemc.ca.

About CO(2) Solutions Inc.
CO(2) Solutions is an innovator in the field of enzyme-enabled carbon capture
and has been actively working to develop and commercialize the
technology for stationary sources of carbon pollution. CO(2) Solutions’ technology lowers the cost barrier to Carbon Capture,
Sequestration and Utilization (CCSU), positioning it as a viable CO(2) mitigation tool, as well as enabling industry to derive profitable new
products from these emissions. CO(2) Solutions has built an extensive patent portfolio covering the use of
carbonic anhydrase, or analogues thereof, for the efficient
post combustion capture of carbon dioxide with low energy aqueous
solvents. Further information can be found at www.co2solutions.com.

About Climate Change and Emissions Management Corporation (CCEMC)
The CCEMC is a not-for-profit, independent Alberta organization with a
mandate to expand climate change knowledge, develop new clean
technologies and explore practical ways of implementing them. Program
money is sourced from the Climate Change and Emissions Management Fund
and made available to the CCEMC by the Government of Alberta through a
grant agreement. The CCEMC offers the path to investigate emerging
opportunities, explore transformative change and act decisively in
pursuing conservation, energy efficiency, cleaner energy production and
carbon capture and storage. The CCEMC is committed to investing in bold
ideas that offer enduring solutions. Further information can be found
at www.ccemc.ca.

CO(2) Solutions Forward-looking Statements
Certain statements in this news release may be forward-looking. These
statements relate to future events or CO(2) Solutions’ future economic performance and reflect the current
assumptions and expectations of management. Certain unknown factors may
affect the events, economic performance and results of operations
described herein. CO(2) Solutions undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under applicable

Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.


Source: PR Newswire