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CARBON FRIENDLY CONFIRMS MAJORITY SHARE ACQUISITION OF MICROCOAL

January 31, 2011

VANCOUVER, Jan. 31 /PRNewswire-FirstCall/ – Carbon Friendly Solutions Inc. (CNSX: CFQ) (“CFS” or the “Company”) is pleased to announce that the Company has
finalized the acquisition of 58.21% of the outstanding share capital of
MicroCoal Inc. (“MCI” or “MicroCoal”), as announced on January 12, 20
and 21, 2011.

In accordance with the share purchase agreement and its amendment, all
MicroCoal shareholders, except for one, exchanged their shares of
MicroCoal on a pro rata basis for 10,957,778 common shares of CFS stock
at a price of CAD$0.27 per share, which equals a total of US$3 million
(the “Share Exchange”). The physical Share Exchange is expected to
occur later in the week.

In addition to the Share Exchange and in accordance with the share
purchase agreement, the Company is to complete a private placement
financing of up to CAD$6 million (the “Financing”) and from such
proceeds, the Company is to pay (i) US$1 million cash to a certain
creditor/shareholder of MCI in consideration for the forgiveness of
certain outstanding debt owed to such creditor by MCI and for the
re-purchase of such creditor’s 1,013 MCI shares for cancellation; and
(ii) up to US$85,000 cash to certain other creditors of MCI to settle
other outstanding indebtedness owed by MCI. Upon completion of the
entire transaction, the Company will own 100% of MicroCoal.
Furthermore, upon completion of the entire transaction, a consultant
and shareholder of the Company will receive an introduction fee of
CAD$450,000.

Stan Lis, President and CEO of Carbon Friendly Solutions Inc. stated,
“Carbon Friendly is very pleased to acquire MicroCoal Inc. with its
patented technology to our project portfolio, and hence significantly
adding shareholder value. We are looking forward to further developing
and marketing the unique technology in order to provide a viable
solution to utilities worldwide. The on-site deployment of the
technology offers utilities significant economic, environmental as well
as operational benefits.”

About MicroCoal Inc.
MicroCoal Inc. was incorporated in 2005 and currently has its
headquarters in Denver, CO with pilot facilities in Golden, CO.
MicroCoal is a clean energy company focusing on commercializing the use
of its patented technologies to decontaminate and upgrade low-rank
coals to match the energy levels of high-rank coals for use by power
utilities.

MicroCoal’s proprietary on-site process not only cleans up coal at the
power plant prior to combustion by significantly reducing contaminants,
but it also reduces GHG emissions and improves fuel efficiency. The
reduction in emissions allows for the generation of substantial carbon
credits in an industry that is one of the world’s largest producers of
emissions. Website address: www.microcoal.com

About Carbon Friendly Solutions Inc.
Carbon Friendly Solutions Inc. provides solutions and products for
companies, organizations and individuals looking to reduce or offset
their global warming impact caused by greenhouse gas (“GHG”) emissions,
while including the generation of carbon credits for sale in the global
Voluntary and Compliance markets. Through its subsidiaries, Global CO2
Reduction Inc. and CO2 Reduction Poland Sp. z o.o., CFS is focusing on
removing and offsetting GHG emissions from the development of
reforestation projects and renewable energy technology projects that
are independently validated and verified to globally recognized
standards and methodologies. Website address www.carbonfriendly.com

On behalf of the Board of Directors
Carbon Friendly Solutions Inc.

“Stan Lis”
President and Director

Certain statements included in this News Release contain forward-looking
statements, including disclosure concerning possible or assumed future
results of operations of the Company. Forward-looking statements
typically are preceded by, followed by or include the words -
“believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,”
or similar expressions. Forward-looking statements are not guarantees
of future performance. They involve risks, uncertainties and
assumptions, and the Company’s results could differ materially from
those anticipated in these forward-looking statements.

SOURCE Carbon Friendly Solutions Inc.


Source: newswire



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