Blue Horizon Industries Inc.
CNSX : BH

September 22, 2011 06:00 ET

Blue Horizon Announces Exclusive Canadian License for Blue Horizon Bio-Diesel Inc.

CALGARY, ALBERTA--(Marketwire - Sept. 22, 2011) - Blue Horizon Industries Inc. ("Blue Horizon" or the "Corporation) (CNSX:BH) announced today that its wholly-owned subsidiary, Blue Horizon Bio-Diesel Inc. ("BH Bio-Diesel"), has entered into an exclusive license agreement with two arm's length third parties to utilize a patent pending technical process that combines hydrocarbons and low grade cellulose products to produce high grade renewable diesel fuel product within Canada. BH Bio-Diesel has agreed to pay a confidential license fee as well as a royalty per litre of each project's net sales of renewable diesel fuel. The term of the exclusive license agreement will continue until the cessation of all activities with respect to the active use of the technology or the expiration of the associated patents.

This renewable diesel technology uses a low temperature, catalytically-driven process to cut complex carbon molecules and polymers into shorter "hydro" carbons. The catalyst used is inert, until it reaches its reaction temperature, where it becomes extremely aggressive to organic materials. The low temperature reaction produces no vapours, dioxins, furans or other pollutants, or the risk of coking. The initial catalytic trigger temperature is derived not by combustion, but by viscous friction of a proprietary turbine, which also serves the dual-functions of providing mixing of the various materials and pumping of this mixture through the system. The conversion of hydrocarbons and cellulose to diesel is performed in a single step.

BH Bio-Diesel intends to initially use used motor oil (hydrocarbons) mixed with paper (cellulose) and process it effectively into high quality ultra-low sulphur diesel that is a renewable high-grade fuel product. The feedstocks produce a yield several times that of most current crude oil refineries, with significantly less impact on the environment. Construction and operational costs are also reduced. BH Bio-Diesel will use the technology under the exclusive Canadian license as a solution to replace the environmentally taxing and expensive current methods of refining. Benefits of the technology are: i) low environmental impact; ii) the process is partially carbon neutral, highly efficient and with low or no emissions; iii) low temperature reaction, 250 – 360 C, compared to 1,200 C plus for traditional refining; and iv) no coke by-products are produced due to the low process temperatures.

Donald Allan, President and CEO of Blue Horizon, stated that "We are excited about finalizing our exclusive Canadian licensing deal on this patent pending technology. We have been working many years to achieve this goal. After researching many technologies and after many pilot tests, we have concluded that the multiple feed stock opportunities, the resulting superior renewable diesel product, the environmental friendly refining methods attributed to this technology along with our excellent technology partners will result in Blue Horizon Bio-Diesel becoming a leader in the renewable fuel business. The culmination of this business transaction is another example of how we are focused on increasing shareholder value through innovation and hard work."

About Blue Horizon

Blue Horizon is a diversified industrial company with the following four-fold strategic focus: i) through Blue Horizon Contracting, a wholly-owned division of Blue Horizon, secure and execute on dismantling contracts of existing industrial plants and related facilities; (ii) through its wholly owned subsidiary Blue Horizon Energy Inc., explore for oil and gas in Western Canada; (iii) through its 74% owned subsidiary Blue Horizon Mining Inc., advance grass roots mining projects; and (iv) through its wholly owned subsidiary Blue Horizon Bio-Diesel Inc., build a pilot bio-diesel manufacturing plant that validates a technology that is licensed to Blue Horizon Bio-Diesel Inc.

Further information about the Blue Horizon can be obtained at: www.blue-horizon.ca.

This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company's disclosure documents on the SEDAR website at www.sedar.com. The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

Neither the Canadian National Stock Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian National Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.

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