SOURCE: Green Energy Resources

October 26, 2009 09:45 ET

Green Energy Resources (GRGR) Contracts With China for 200,000 Tons of Woodchips Valued at over $20 Million

NEW YORK, NY--(Marketwire - October 26, 2009) - Green Energy Resources (PINKSHEETS: GRGR) plans to supply China with approximately 200,000 tons of woodchips valued around $20 million. Green Energy Resources plans to use a US west coast port. The contract was originally signed by both parties in February of 2008. Rapidly escalating fuel, freight and container prices halted the order before operations could get underway last year in the peak of the fuel price run up that culminated in near $150 per barrel oil prices. The contract doubles the original quantity from 100,000 tons to 200,000 tons. Green Energy Resources looks to make the first shipment in November or December of this year. Shipping freight rates have been cheaper in the Pacific Basin as opposed to the Atlantic in 2009. Green Energy Resources is in the process of re-negotiating multiple contracts abrogated in 2008 due to fuel/ freight market conditions.

INDIA; Green Energy Resources received a Letter of Intent from India earlier this month to supply upwards of 7 million tons of woodchips annually valued at approximately $576 million. Green Energy Resources continues to make progress in regard to locating available shipping freight options, Discussions remain ongoing;

Ogdensberg, NY; Oct 7, 2009 Green Energy Resources had sought to utilize the upstate NY port for woodchip exports. Negotiations between Green Energy Resources and the Ogdensberg Port Authority were well chronicled throughout this past spring and summer and reported in the Ogdensberg Times located in Watertown NY. Negotiations centered around dredging the port beyond its 27 foot depth (not deep enough to carry woodchips); a truck dump for suppliers to deliver woodchips and insurance values. The Ogdensberg Port Authority erroneously stated Green Energy Resources defaulted on the contract. Green Energy Resources terminated discussions with written notice on September 24th. No contract was actually in effect to begin receipt of woodchips by Green Energy Resources.

MERGER; Green Energy Resources is an environmentally friendly company obtaining supplies from recycled woods, storm damage, urban wood waste streams and tree farms for the renewable energy industry.. The company's 2nd qtr financials should be released in the next few weeks. Merger and Acquisition negotiations with an undisclosed energy company remain ongoing.

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 companies' 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, ship availability, fuel costs and other risks.

Contact Information

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    Green Energy Resources
    631 375 7921