Alternative Fuels Corporation

Alternative Fuels Corporation

June 23, 2009 12:45 ET

Alternative Fuels Corporation and University of Witwatersrand Sign Exclusive Agreement to Produce Fischer Tropsch Fuels and Chemical Feedstocks

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 23, 2009) - Alternative Fuels Corporation ("AFC"), a wholly owned subsidiary of G4G Resources Ltd. (TSX VENTURE:GXG) ("G4G") and University of Witwatersrand, Johannesburg, South Africa ("Wits") today announced the signing of an exclusive representation agreement to commercialize the fuel and chemical production process developed by the Centre of Materials and Process Synthesis (COMPS) located at The University of Witwatersrand, Johannesburg, South Africa. This propriety technology utilizes the established Fischer-Tropsch process.

COMPS has recently commissioned 2 commercial scale pilot plants in China and Australia. Both plants are now producing at design capacity and planning is now underway for commercial scale production facilities.

The agreement grants AFC exclusive rights to market the Wits conversion technology in the Americas. The agreement follows AFC's announcement of 13th May 2009 on the agreement with Turtle Island Recycling Corporation for waste material as feedstock for the production of fuels and chemical feedstocks in Sarnia, Ontario.

"The management of AFC are delighted with the conclusion of the exclusive agreement with Wits, and we will be moving as quickly as possible to deploy the first waste to chemicals conversion plant in the Americas," stated Michael Hepworth, VP of Business Development for AFC. "There are a number of potential sites for the first plant, including Sarnia, where AFC has secured feedstock and has received interest from 2 customers willing to take AFC's total production."

The conversion process developed by COMPS is second generation Fischer Tropsch technology. The first generation, which was successfully developed and implemented by Sasol, has been utilized on a large commercial scale for over fifty years and produces thirty percent of the South Africa's fuel requirements. Indirect liquefaction was developed by Franz Fischer and Hans Tropsch in 1923.

The COMPS FT technology offers the following advantages over first generation technology:

- 20-30% lower capital cost per barrel than 1st generation FT

- Lower operating costs

- Similar efficiency levels

- A robust and simple process that is reliable and easy to operate

- Plants that are quick to design & build

- Scalable to meet demand

- Modular plant that can be rapidly expanded

- A once-through process that is energy and capital efficient

- Produces sufficient electricity to run the plant and supply the grid

- The world's greenest fuels and chemicals when using biomass derived feedstocks.

Key elements of the agreement between AFC and Wits include the following:

- AFC has exclusive rights to market COMPS proprietary second generation Fischer Tropsch ("FT") technology.

- Plants in other areas will be handled on a case by case basis.

- The term of the agreement is 10 years, renewable for a further 10 years at the end of the first period.

- For each individual production plant, AFC and COMPS will work together in partnership, with technical expertise to be provided by COMPS personnel.

- COMPS will receive compensation in the form of royalties based on the capital costs of plants and product produced.

Mr. Hepworth continued, "As countries and consumers become increasingly aware of the impact of fossil fuels on climate change, chemical and oil companies are looking for sustainable sources of feedstocks. The synthetic fuels and chemical feedstocks produced through the COMPS process have superior properties to fossil fuels and none of the disadvantages of bio-fuels. These fuels have the lowest greenhouse gas footprint of all liquid fuels, contain none of the harmful contaminants like sulphur and do not gel or cloud in cold weather."

About Alternative Fuels Corporation

AFC is altering the way the world views waste. Instead of a liability to be disposed of, waste must be seen as a domestic, distributed energy source, worthy of transformation into valuable commodities. AFC will focus its early efforts on opportunities in the Americas and plans to build plants to convert waste to sustainable fuels and chemical feedstock in cities and areas where there are more than 1,000,000 people. AFC plans to focus its efforts on building plants of between 2000 and 20,000 barrels per day, a market niche other competitors have difficulty competing in. Coal to liquids and gas to liquids will be considered on a case by case basis. AFC is a wholly owned subsidiary of G4G Resources. For more information visit www.alternativefuelscorp.com.

About G4G Resources (TSX VENTURE:GXG)

G4G Resources is a Canadian-based mineral exploration and development company focused on a number of resource projects, including iron ore, gold, alternative fuels and geothermal power.

About COMPS

COMPS is a research and consulting group within the University of the Witwatersrand and was founded in order to promote links between industry and the process synthesis research being conducted at the University. COMPS has established a strong international reputation for creative work and has achieved outstanding academic excellence as a result of their joint work in process synthesis.

History of the Fischer Tropsch Process

The Fischer Tropsch technology ("FT") was originally discovered in the 1920's by German scientists and by 1938 Germany was running nine industrial plants which produced fuel from coal. In the 1950s, the South African Coal Oil and Gas Corporation (Sasol) commissioned an FT plant based on coal in Sasolburg, South Africa. Research on FT has continued ever since at Sasol. Due to the oil crisis of the mid 1970s Sasol constructed two much larger coal-based FT plants which came on-line in 1980 and 1982 respectively. These two plants produce approximately 160,000 bbl/day of fuel which supplies 28% of South Africa's fuel requirements. Further commercial ventures, which have used natural gas as a feedstock, include Shell's plant in Malaysia and PetroSA plant in South Africa. In the last few years the interest for FT has grown significantly due to the increased demand for energy. Recent commercial ventures include the development of Gas-To-Liquids ("GTL") plant, Oryx GTL, in a joint venture of Sasol with Qatar Petroleum at Ras Laffan in Qatar.

Forward-Looking Statement

This document may contain or refer to forward-looking information based on current expectations, including, but not limited to timing of mineral resource estimates, future exploration or project development programs and the impact on the Company of these events. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances. For a detailed list of risks and uncertainties, as it relates to G4G Resources Ltd., please refer to the Company's 2008 Annual Report filed with SEDAR on April 23, 2009.

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