SOURCE: Core Resources Limited

March 19, 2007 05:53 ET

Core Resources Ltd. (CRLJ.pk) to Enter $55 Billion Alternative Fuels Sector

Alternative Energy Sector Expected to Exceed $226 Billion by 2017

VANCOUVER, BC -- (MARKET WIRE) -- March 19, 2007 -- Core Resources Ltd. (PINKSHEETS: CRLJ) to announce today that the company plans on entering the alternative fuels market. The management is currently formulating the strategy to aggressively enter this market through internal growth and through acquisition of existing research and development or operating businesses. Industry statistics indicated that the market for alternative energy exceeded $55 Billion in 2006 and is expected to exceed $226 billion in the next decade. The Core Resources management team is currently meeting with industry leaders in agricultural production, energy processing and research. It is anticipated that further developments will be publicized in the near future as negotiations progress.

ABOUT THE ALTERNATIVE FUELS INDUSTRY

A variety of fuels can be produced from biomass resources including liquid fuels, such as, ethanol, methanol, and biodiesel. Biofuels are primarily used to fuel vehicles, but can also fuel engines or fuel cells for electricity generation.

ETHANOL

Ethanol is made by converting the carbohydrate from biomass into sugar which is then converted into ethanol in a fermentation process similar to brewing beer. Ethanol is the most widely used biofuel today with current capacity of 4.3 billion gallons per year based on starch crops, such as corn. Ethanol produced from cellulosic biomass is currently the subject of extensive research, development and demonstration efforts.

BIODIESEL

Biodiesel is produced through a process in which organically derived oils are combined with alcohol (ethanol or methanol) in the presence of a catalyst to form ethyl or methyl ester. The biomass-derived ethyl or methyl esters can be blended with conventional diesel fuel or used as a neat fuel (100% biodiesel). Biodiesel can be made from any vegetable oil, animal fats, waste vegetable oils, or microalgae oils. Soybean and Canola are the most common vegetable oils used today.

CELLULOSIC ETHANOL

Many industry experts believe the future of biofuels is based upon the successful research and development of cellulosic ethanol. This type of ethanol is a fuel produced from the stalks and stems of plants rather than only from sugars and starches, as with corn, sugar cane or soybean based fuels. Cellulosic ethanol is attractive because the feedstock, which includes wheat, straw, corn stover, grass, and wood chips, is cheap and abundant.

INDUSTRY ANALYSIS "ALTERNATIVE ENERGY A $226 BILLION MARKET BY 2017"

The overall market for fossil fuel alternatives, primarily biofuels was over $20 billion in 2006. Wind and solar power saw $17.9 billion and $15.6 billion in spending, respectively, while $1.4 billion in funding went into fuel cell technology last year. Those four energy technologies grew in aggregate by 39 percent in 2006 to $55.4 billion. Energy research firm Clean Edge forecasts that the rapid growth rate will continue for the next decade, making clean technology a $226 billion market globally by 2017.

Led by the projected use of ethanol for transportation, the market biofuels is conservatively projected to grow to more than $80 billion in 2016. The solar market, representing both products and services, will expand to nearly $70 billion, and wind will be a $60 billion market in 2016 as forecasted by Clean Edge.

ETHANOL IN BRAZIL

Due to the energy crisis in the 1980s the Brazilian government accelerated ethanol production to reduce dependence on foreign oil. Much of the world scoffed at such an idea. Now 20 years later, Brazil leads the world in alternative energy proving that biofuels is indeed a viable alternative to fossil fuel dependence.

Ethanol in Brazil accounts for 40 percent of all vehicle fuel. All new Brazilian Cars can run on 100 percent ethanol made from Brazilian sugar-cane. In Brazil, ethanol is now being used in aviation, commercial transportation, passenger vehicles and for residential and industrial power generation. Brazil's ethanol program has displaced imported oil worth $120 billion. This is comparable to a savings of almost $2 trillion for a U.S.-sized economy.

VENTURE CAPITAL INVESTMENT

Leading visionary Venture Capital Firms have recognized that alternative fuels investment is extremely attractive. Venture Wire, a leading VC tracking firm reported that the amount raised by U.S. venture-backed companies in 2004 was $21 billion and in investment hit $22.13 billion in 2005. 2006 VC investment in alternative fuels exceeded $40 billion.

John Doerr possibly the most preeminent VC in the world and founder of Kleiner, Perkins and head of Greentech Initiatives recently commented that, "Going Green (investing in alternative fuels) is the largest economic opportunity in the 21st century." Stephan Dolezalek, managing director of VC VantagePoint was recently quoted, "In Five years the biofuels sector can be every bit as big as the Internet." Vinod Khosla, co-founder of Sun Microsystems and head of Khosla Ventures, is a major backer of alternative energy initiatives, cellulosic ethanol and has funded numerous companies in this sector.

US GOVERMENT BACKS ALTERNATIVE FUELS

In his recent State of the Union address President Bush clearly laid out his administration's position on reducing America's dependence on foreign oil. President Bush has mandated an increase of supply to 35 billion gallons of alternative fuels by 2017 a five times increase from current levels.

President Bush commented on this issue in his recent state of the union address "America is on the verge of technological breakthroughs that will enable us to live our lives less dependent on oil. And these technologies will help us be better stewards of the environment, and they will help us to confront the serious challenge of global climate change."

The administration is backing up this position. In February of 2007 The US Department of Energy announced that they have awarded $385 million dollars to six companies for cellulosic ethanol development.

The DEO funding recipients are the following six companies:

--  Abengoa Bioenergy Biomass of Kansas, LLC of Chesterfield, Missouri, up
    to $76 million.
    Abengoa Bioenergy Biomass investors/participants include: Abengoa Bioenergy
    R&D, Inc.; Abengoa Engineering and Construction, LLC; Antares Corp.; and
    Taylor Engineering.
    
--  ALICO, Inc. of LaBelle, Florida, up to $33 million.
    ALICO, Inc. investors/participants include: Bioengineering Resources, Inc.
    of Fayetteville, Arkansas; Washington Group International of Boise, Idaho;
    GeoSyntec Consultants of Boca Raton, Florida; BG Katz Companies/JAKS, LLC
    of Parkland, Florida; and Emmaus Foundation, Inc.
    
--  BlueFire Ethanol, Inc. of Irvine, California, up to $40 million.
    BlueFire Ethanol, Inc. investors/participants include: Waste Management,
    Inc.; JGC Corporation; MECS Inc.; NAES; and PetroDiamond.
    
--  Broin Companies of Sioux Falls, South Dakota, up to $80 million.
    Broin Companies participants include: E. I. du Pont de Nemours and Company;
    Novozymes North America, Inc.; and DOE's National Renewable Energy
    Laboratory.
    
--  Iogen Biorefinery Partners, LLC, of Arlington, Virginia, up to $80
    million.
    Iogen Biorefinery Partners, LLC investors/partners include: Iogen Energy
    Corporation; Iogen Corporation; Goldman Sachs; and The Royal Dutch/Shell
    Group.
    
--  Range Fuels (formerly Kergy Inc.) of Broomfield, Colorado, up to $76
    million.
    Range Fuels investors/participants include: Merrick and Company; PRAJ
    Industries Ltd.; Western Research Institute; Georgia Forestry Commission;
    Yeomans Wood and Timber; Truetlen County Development Authority;
    BioConversion Technology; Khosla Ventures; CH2MHill; Gillis Ag and Timber.
    
Leading Public Companies in the Alternative Fuels Sector include:

In the last few years dozens of companies have tapped the public markets in the alternative fuels sector. Billions of dollars of market capital has been generated and the biofuels IPO pipeline is still strong.

Archer Daniels Midland Co., Dupont, Verasun Energy Corporation, MGP Ingredients, Pacific Ethanol, Inc., Green Plains Renewable Energy, Inc., Energy Conversion Devices, Aventine Renewable Energy Holdings Inc., US BioEnergy, Methanax Corporation, Tiger Ethanol, BlueFire Ethanol Inc., US Sustainable Energy Corporation, Sustainable Power Corp., Alcar Chemicals Group Inc., Gulf Ethanol Corp., China Clean Energy Corp.

About Core Resources Ltd.

Core Resources (PINKSHEETS: CRLJ) is a North American-based energy company seeking opportunities in the alternative fuels sector. The company is currently in negotiations with numerous concerns involving development of business initiatives in agriculture, energy processing and research.

Cautionary Statement Regarding Forward-Looking Information:

Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "potential," "estimate," "plan," "expect," "project," "intend," "believe," "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.

Contact Information

  • Investor Contact:
    Patrick Rost, PMR and Associates, LLC
    760-703-6753
    PMRandCo@aol.com