BioNitrogen Corp.
PINKSHEETS : BION

BioNitrogen Corp.

February 22, 2012 07:00 ET

BioNitrogen Secures Property to Begin Development of a Flagship Urea Plant in Lubbock, Texas, U.S.A.

MIAMI, FLORIDA--(Marketwire - Feb. 22, 2012) -

Editors Note: There is a video associated with this press release.

BioNitrogen Corp. (PINKSHEETS:BION) ("BioNitrogen" or the "Company"), a developer of revolutionary patent-pending technology for converting renewable and abundant biomass waste into high-nitrogen urea and urea fertilizer, announced today that is has secured a forty-nine (49) acre parcel of land to construct the Company's inaugural plant in Lubbock, Texas, U.S.A.

BioNitrogen expects to complete the land purchase after concluding an Environmental Site Assessment (ESA). The Company has already engaged X8 Engineering whom anticipates completion of the ESA no later than March 12, 2012.

BioNitrogen expects to begin construction of the plant after evaluating, obtaining and finalizing its financing and engineering options for the construction and commissioning, which it expects to complete in the coming weeks. The Company anticipates that the total cost to construct the plant will be approximately $65,000,000 USD.

The Company's innovative, patent-pending technologies transform residual agricultural waste and other biomass materials into high-quality bulk urea (a white, crystalline solid containing 46% nitrogen), which are principally used in the agricultural industry as a crop fertilizer, and sold to both agricultural wholesalers and retailers.

The modular plant has a design capacity capable of manufacturing up to 15 tons of urea fertilizer per hour for a total annual production of up to approximately 124,200 tons per plant, which anticipates 20 days for equipment maintenance and upkeep.

The Company estimates that the annual economic potential associated with the proposed Lubbock Plant could be as much as $77,128,000 USD (1).

Additionally, the 49 acre land parcel at the proposed plant would allow the company to increase the size of the production facilities, which in turn is projected to double the proposed output capacity. The additional capacity would be used to produce Urea Ammonium Nitrate (UAN) as well as granular urea.

As previously announced on February 2, 2012, the Company entered into a Letter of Intent with United Suppliers for the purchase of up to 300,000 tons annually of urea in granular or prilled grade form. The binding agreement, currently under final negotiation between the two parties, will be for an initial term of three (3) years. BioNitrogen projects that the economic potential benefit could be as much as $558,900,000 USD (2).

Lubbock, Texas was selected as the location for the first production facility because the site is close to the Company's engineering and construction office also located in Lubbock. As a result of this proximity the Company intends to utilize the proposed plant as BioNitrogen's primary research and development facility to develop and refine technological enhancements to the Company's products and processes. The vision for the Lubbock site is consistent with the company's commitment to continually improve and enhance plant operations and production efficiencies.

"Given the inextricable link between food consumption, production and fertilizer demand and supply balances for the next 40 years, the importance of our inaugural plant in the USA cannot be overstated for both our national and international future customers and shareholders. Over the past month since our announcement to commercialize the company, we have received almost daily inquires of interest from around the world wanting to examine strategic partnerships and associated investment opportunities relating to our patent-pending nitrogen-based urea and fertilizer production facilities," Dr. Terry R. Collins, President and CEO of BioNitrogen, stated.

Agriculture in Texas

Agriculture is the second largest industry in Texas, a state which ranks second in the country in agricultural production. According to American Farmland Trust, Texas produces approximately $73 billion in agricultural revenue each year. Texas is home to over 142 million acres of private farms, ranches and forestlands, and the state leads the nation in land area devoted to privately-owned working lands. These lands account for 84% of the state's entire land area and provide substantial economic, environmental, and recreational resources to the benefit of the state's entire population. (Source: http://www.texaslandtrends.org/).

Profile of Lubbock, Texas

Lubbock is known as the cotton capital of Texas - and Lubbock is, in fact, the center of the largest contiguous cotton-growing region in the world. Lubbock maintains the home of the world's most complete cotton production, marketing, and research infrastructure in the world. It is the center of an extraordinary array of resources devoted to genetics and breeding, agriculture production systems, harvesting and ginning, marketing and pricing, textile manufacturing, and product design, fabrication, and promotion. For more information, please visit http://www.lubbockeda.org/.

Conclusion

Mr. Frank J. Segredo, BioNitrogen's Chief Development Officer concludes, "Fertilizer demand has historically been influenced by changing and often interrelated factors such as population and economic growth, agricultural production, oil/gas prices, government policies, available land, soil health, freight rates, trade balances and even dietary changes. This still holds and will continue to do so for many years to follow. We think that BioNitrogen is perfectly positioned to effectively respond to these changes."

Worldwide population is growing, and the Company plans to grow with it in an era of higher food demand and prices. With demand for basic food crops increasing to mirror increased population growth, the Company concludes that increased fertilizer consumption will be required to support global imports and exports of high-grade nitrogen-based urea. As Dr. Collins is often quoted, "The demand for global fertilizer will never cease, now may be the best time to come grow with us."

About BioNitrogen Corp.

BioNitrogen is an entrepreneurial, American company that has been established to design and to build fully operational, turnkey manufacturing facilities to produce urea. BioNitrogen is undertaking these efforts in response to the challenges presented by an ever expanding world population, a rapidly increased need for food production, and an awareness of the fragility of the world's environment. Given all these challenges and the promise that the Company's products possess to effectively respond to these challenges, the Company believes that it is positioned at the right place and time.

BioNitrogen is headquartered in Miami, Florida, USA and trades on the over-the-counter pink current information tier under the stock symbol BION. Learn more at http://www.BioNitrogen.com/Invest_Today/.

Additional information can be found on BioNitrogen's website at www.BioNitrogen.com and an executive corporate summary video can be viewed here, http://www.BioNitrogen.com/slides/bionitrogen-video/.

Safe Harbor Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 - This press release contains forward-looking statements, including without limitation statements about the operations and future prospects for BioNitrogen Corp. (the "Company"). Forward-looking statements in this press release should not be viewed as pledges or undertakings regarding future performance. These forward-looking statements are subject to risks and uncertainties that could cause the Company's actual results to vary materially from those anticipated. The Company cautions the reader not to place too much reliance upon any such forward-looking statements, because such forward-looking statements reflect the opinions and beliefs of the Company only as of the date when they were made. Factors that may cause actual results to differ materially from the forward-looking statements contained in this release include, among others, the following: (i) the Company's future operational, financial or marketing performance; (ii) the ability of the Company to bring new products to market that are complementary to the products that the Company currently produces; (iii) the ability of the Company to increase or maintain profit margins on the products it offers to the marketplace; (iv) the strength of the Company's product development pipeline; (v) the Company's growth and profitability prospects; (vi) the estimated size and growth prospects of the natural fertilizer market; (vii) the Company's competitive position in the natural fertilizer market and its ability to take advantage of future opportunities in this market; (viii) the benefits of the Company's products to be realized by customers; (ix) the receptiveness of the agricultural and commercial market for bulk urea or other products that the Company manufactures; and (x) a reduction in the cost of natural gas or other inputs that may make the cost of producing urea using alternate methods less expensive compared to the cost of producing urea at one of the Company's plants. Forward-looking statements are based on management's beliefs and opinions at the time the statements are made. The Company does not have any obligation to update forward-looking statements should circumstances change or should management's beliefs or opinions change.

(1) http://www.bionitrogen.com/2011/11/03/fertilizer-prices-may-rise-by-spring/

The numbers are calculated assuming an average per ton rate of $621

(2) The numbers are calculated assuming an average per st rate of $625

To view the video associated with this press release, "Executive Summary of BioNitrogen," please visit the following link: http://www.youtube.com/watch?v=lTHO9vNVLdI.

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