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Pure Biofuels Signs Agreement to Acquire Additional 14,000 Hectares for Palm Oil Cultivation

Posted on: Tuesday, 15 January 2008, 06:00 CST

Pure Biofuels (OTCBB: PBOF) today announced the signing of an agreement to acquire 14,000 hectares of land near the city of Pucallpa in central Peru for the cultivation of African Palm to produce palm oil to provide feedstock for its biodiesel production facilities on the coast near Lima. This is in addition to the 60,000 hectares of land in the same region secured by Pure and announced in March 2007.

The new 14,000 hectares will be acquired under a share purchase agreement. The terms of the agreement include the acquisition of 100% of the shares of Inmobiliaria Alpha SAC, a company that owns 15,000 hectares of land and include the transfer back to the seller of 1,000 hectares after the acquisition is completed. Pure expects the acquisition to close by the end of March.

The 14,000 hectares to be acquired by Pure is currently empty and deforested and has already undergone improvements including roads, infrastructure and electricity. Closing of the land acquisition is subject to customary closing conditions.

"This is another important step for our company, and we're very pleased to be acquiring land that is so well prepared for immediate cultivation," stated Pure Biofuels' Founder and CEO, Luis Goyzueta. "The recommendations resulting from our recently completed feasibility studies confirm that African Palm is the lowest cost feedstock source for our production of biodiesel, and we plan to move ahead swiftly with the preparation and planting necessary to see this plantation producing oil as soon as possible. We expect to be ordering seeds and setting up nurseries within the next 90 days and hope to have our first yields within 24-36 months."

The company previously reported that the African Palm will find a healthy environment in the central Peruvian forests. It is a hearty plant that thrives in the tropical environment. The company's strategy to self-supply feedstock is a primary differentiator -- with many competitors planning to purchase feedstock oil from plantation owners or from the global commodity market.

Pure has plans for an interim supply of the necessary feedstock oils to begin production as soon as the company's Interpacific Oil expansion and the construction of the company's primary Callao Port facility are complete. Those facilities' combined output is more than 62 million gallons of biodiesel per year. The company expects the new 14,000 hectare plantation will provide up to 40% of the necessary feedstock to reach full capacity for those facilities, and the company has additional plans for more land acquisitions to satisfy its remaining -- and future growth -- needs.

About Pure Biofuels Corporation

Pure Biofuels is committed to becoming a leader in Latin America's rapidly emerging biofuels industry. Pure Biofuels' flagship project, the Callao Port biodiesel refinery near Lima, Peru, is scheduled to complete construction of its plant in the first quarter of 2008 and to commence full production capabilities by mid-2008. The Callao Port refinery will process biodiesel from crude palm oil feedstock. Pure Biofuels has secured memorandums of understanding with local fuel distributors for all of Callao Port's annual biodiesel production. The Company believes Peru's economic growth and expansion, illustrated by recent exponential growth in foreign direct investment, and GDP growth over the last five years, adds to Peru's promise as an attractive geography for alternative fuel production and development. In addition, rating agency DBRS has recently assigned investment-grade credit ratings to Peru's long-term foreign and local currency debt. For more information about Pure Biofuels, please visit: http://www.purebiofuels.com/home.html

About Biodiesel

Biodiesel is a clean and renewable energy source derived from vegetable oil that can be used in unmodified diesel engines. Biodiesel improves overall engine performance, is 100% compatible with existing diesel vehicles and infrastructure, and has proven reliable in over 50 million miles of road testing. Biodiesel significantly reduces harmful exhaust emissions, which contribute to global warming; is non-toxic at any level; and is the first and only fuel to have passed the Clean Air Act. The United Nations expects biofuels to account for a full 25% of world energy needs by 2025.

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Since the forward-looking statements relate to future developments, results or events, these statements are highly speculative and involve risks, uncertainties and assumptions that are difficult to assess. You should not construe any of these statements as a definitive or invariable expression of what will actually occur or result. Such forward-looking statements include, among others, the expectation and/or claim, as applicable, regarding the construction of the Callao Port refinery. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, (i) Pure Biofuels' ability to raise the necessary capital to complete construction of the biodiesel refinery; (ii) Pure Biofuels' ability to obtain any necessary government, regulatory or other permits or approvals; (iii) Pure Biofuels' ability to operate effectively in a highly competitive industry with many participants; (iv) Pure Biofuels' ability to keep pace with technological advances and correctly identify and invest in the technologies that become commercially accepted; (v) Pure Biofuels' ability to protect its intellectual property rights and exposure to infringement claims by others; (vi) Pure Biofuels' ability to operate the biodiesel refinery, if and when construction is completed, efficiently, without work stoppages, labor disputes, equipment/mechanical break-downs, political, economic and social unrest and in compliance with new governmental regulations; (vii) Pure Biofuels' ability to comply with environmental, health and safety laws; and (viii) Pure Biofuels' ability to negotiate binding agreements for the sale of biodiesel, if and when production commences. These forward-looking statements are made as of the date of this news release and the company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the company believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations, or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the company's periodic reports filed from time to time with the Securities and Exchange Commission and available at www.sec.gov.

Source: Business Wire

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