SOURCE: Axial Vector Energy Corp.

Axial Vector Energy Corp.

January 24, 2011 07:15 ET

Axial Vector Agrees To License and Sell Technology to China Under Joint Cooperation for Energy Independence

DUBAI, UNITED ARAB EMIRATES--(Marketwire - January 24, 2011) - Axial Vector Energy Corporation ("AVEC") (PINKSHEETS: AXVC) (FRANKFURT: BAE1) announced today it has agreed to sell to one of three Special Economic Zones in China its "Rare Earth Magnet Generator Systems." Further the company has agreed to negotiate a "Strategic Framework Agreement" with a Chinese Auto Company for testing and licensing the "AVEC WORKHORSE ENGINE" for heavy duty trucks. The "AVEC WORKHORSE ENGINE" is the only true "Multi Fuel Engine" capable of using non fossil fuel such as "Palm Oil" and all hydrocarbon fuels as well to power heavy-duty trucks at a fraction of the fuel cost and environmental pollution.

Company executives will travel to China again in February to complete the negotiations. A minimum price of $5,000,000 has been set for the sale of the "Rare Earth Magnet Generator Systems."

Samuel Higgins, Chairman and CEO of Axial Vector stated "This sale of our generator systems and license on our engine will provide the needed working capital and revenue to continue the commercialization of the product pipeline and the new patents we have filed."

The company will apply this week for export certification of its products with the U.S. State Department under the Commerce Control List (CCL) of regulated commercial items as outlined by the Export Administration Regulations (EAR). Many "dual-use" items that have commercial, military or proliferation applications and clearance will be needed to complete the sale.

The CCL regulates a broad array of commodities, software and technologies including, but not limited to, building materials, circuit boards, automotive parts, blue prints, design plans, software packages, and technical information.

The China / USA pipeline of "Green Technology" has opened wider with last week's visit of President Hu with President Obama.

"As the world's two largest energy consumers, China and the US will also join hands for renewable energy development," said Zhang Guobao, head of National Energy Administration (NEA), adding that China will keep an open mind to develop the renewable energy sector. "The two countries have big potential for collaboration in the area," said Zhang, "The US has advanced technology, and China has a huge market."

The US and China will "take every angle" to ensure their cooperation in energy and environment, said US Ambassador to China Jon Huntsman.

China has also pushed ahead fast in developing wind power. It overtook the United States in new installations and in manufacturing of wind turbines last year, nearly doubling its wind generation capacity from 12,100 megawatts in 2008 to 25,100 megawatts at the end of 2009.

Axial Vector "Rare Earth Magnet Generator Systems" will allow wind farms to generate commercial electricity at a fraction of the wind speed of conventional turbines, which is a huge economic benefit.

"The United States and China are actively cooperating on a wide range of security, economic, social, energy, and environmental issues which require deeper bilateral engagement and coordination," the joint statement from the White House and China said. "The two sides view climate change and energy security as two of the greatest challenges of our time."

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About Axial Vector Energy Corporation
Axial Vector Energy Corporation (AVEC) is a global solutions provider that owns, develops, invests in and licenses revolutionary technologies including internal combustion engine and electric power generator technologies that have unlimited potential in military, industrial and commercial applications. AVEC and its partners are positioned to become unrivalled leaders in international engine and energy markets with technologies that produce more efficient, cost effective, environmentally sensitive and versatile solutions for use in a wide variety of important applications around the world.

Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, among others, all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward- looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products, product defects and any related product recall; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors and risks mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2007 and any subsequent SEC filings. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

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