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GreenHunter Energy Declares Dividend

Posted on: Tuesday, 19 August 2008, 15:01 CDT

The Board of Directors of GreenHunter Energy, Inc. (AMEX: GRH) has declared a dividend of one common purchase warrant for every ten (10) common shares owned to all shareholders of record as of August 30, 2008. Additionally, each Series A Preferred Stock shareholder will receive the dividend on an "as converted" basis. This warrant will be a restricted warrant and will not be listed on any exchange.

The warrants will have a term of three years and an exercise price of $27.50 per common share. The Company may call the warrants at any time after one year and the Common Stock of GreenHunter Energy has closed at an average price of $32.50 per share or greater for the preceding ten days. The Company will round any fractional warrants down to the nearest whole number.

GreenHunter Energy intends to distribute the warrants to the common and preferred shareholders on or about September 15, 2008. Until such time as the Company elects to register the underlying common shares, if exercised, the common stock purchased from the exercise of the warrants will remain restricted.

Commenting on the purchase warrant dividend, Mr. Gary C. Evans, Chairman, President, and Chief Executive Officer, stated, "Our Board of Directors wishes to reward our existing shareholder base by declaring this dividend. These new warrants will provide this dedicated group the opportunity to acquire an additional ownership position in GreenHunter Energy at some future date should our Company's operating performance achieve anticipated results. This opportunity only exists for those shareholders that are record holders as of August 30, 2008."

Forward-Looking Statements

Any statements in this press release about future expectations and prospects for GreenHunter Energy and its business and other statements containing the words "believes", "anticipates", "plans", "expects", "will" and similar expressions constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the substantial capital expenditures required to fund its operations, the ability of the Company to implement its business plan, government regulation and competition. GreenHunter Energy undertakes no obligation to update these forward-looking statements in the future.

GreenHunter Energy is focused on the renewable energy sectors of wind, hydro, geothermal, solar, biofuels, and biomass power plants. Our assets consist of leases of real property for future development of wind energy projects located in Montana, New Mexico, California, Texas, wind development projects in Wyoming and China that we believe will be acquired in the future, the nation's largest biodiesel refinery located in Houston, Texas, and a cow manure-fired power plant located in Brawley, California. Headquartered in Grapevine, Texas, GreenHunter Energy was formed to be the first publicly traded renewable energy company based in the U.S. that provides to investors a portfolio of diversified assets in the alternative energy sector. Additional information about GreenHunter Energy may be found at www.greenhunterenergy.com.

Source: Business Wire

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