SOURCE: Green Energy Resources

November 05, 2007 07:00 ET

Green Energy (GRGR) Gets $12.5 Million Wood Pellet Supply Contract; Offers Shareholders 10% Dividend as Oil Nears $100 per Barrel; Looks for Strong 4th Qtr

NEW YORK, NY--(Marketwire - November 5, 2007) - Green Energy Resources (PINKSHEETS: GRGR) has received an 8.5 million euro contract to supply wood pellets to a European power utility company. The order represents about 75,000 tons of pellets. The contract is the 2nd in less than a month. The value in US dollars is approximately $12.5 million. Shipment is expected to begin in late December and extend through January 2009. The two contracts combined will yield about $2.5 million per month through the 2nd qtr 2008. The first of two pellet contracts is expected to begin shipping next week. Approximately 1500 tons have already been manufactured and are being readied for export.

Wood pellets are made from sawdust, then heated, dried and compressed into a tablet that resembles rabbit food. Pellets are utilized by the European power utility industry to mix with coal (co-firing) to reduce harmful green house gas emissions. Pellets are an environmentally friendly product that generate uniform heat when burned with coal . Most European commercial power utility providers use pellets to reduce carbon emissions. 50% of all electricity in Europe is generated from coal. The pellet market is a multi billion dollar industry representing about 10% of the total coal consumption in Europe.

Green Energy Resources is offering new and existing shareholders a 10% stock dividend payable this month.The company paid a 5% stock dividend in 2006. Green Energy Resources CEO, Joseph Murray, has pledged to return his dividend back to the company treasury as he did in 2006. Mr. Murray stated the dividend was intended for shareholders and not company executives.

Market news: Oil continues its push to $100 per barrel as European currencies continue to rise against the dollar. As oil skyrockets so do renewable energy contracts. For each dollar per barrel oil rises hundreds of millions of dollars are being spent to counteract the impact of fossil fuels in business and industry. Green Energy Resources earned nearly $5 per ton since October, 22nd from the currency exchange rate alone. The two orders will be shipped together reducing export costs as they are bound for the same country.

Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the company's actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings and other risks.

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