Interline Updates Status of NorthCut Debt

ALPINE, Utah, Dec. 5 /PRNewswire-FirstCall/ — Interline Resources Corporation (Pink Sheets: IRCE) announced today the status of their outstanding debts for the NorthCut Refinery project.

Mike Williams, President of Interline Resources Corporation stated, “The obligation for servicing the outstanding construction loan issued to NorthCut Refining LLC for the NorthCut Refinery project through Private Capital Group (PCG) is currently up to date. The $250,000 payment due December 1, 2008 has been made.”

In March 2008 a loan was made to Interline Resources through PCG for $650,000 which was secured by the Interline office building. Proceeds from this loan were subsequently loaned to NorthCut by Interline to cover additional construction costs and plant salaries. This loan matured in September 2008 and Interline had been working with PCG to restructure terms. Although Interline received no notification from the holder of the note, it was placed in default on November 11, 2008. Interline discovered this default condition through its own investigation of on-line sources. Interline is continuing to work with PCG to quickly cure this default situation.

Note: The statements released by Interline that are not purely historical are considered to be forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within Interline’s control. These factors include, but are not limited to, economic conditions generally and in the markets in which Interline may participate, competition within Interline’s markets and failure by Interline to successfully develop business relationships.

SOURCE Interline Resources Corporation