SOURCE: Fox Petroleum Inc.

Fox Petroleum Inc.

October 19, 2010 08:30 ET

Fox Petroleum Expands Green Recycling Subsidiary

New Canadian Plant to Produce Recycled PET Flake From Post-Consumer PET Bottles

NEW YORK, NY--(Marketwire - October 19, 2010) -  Fox Petroleum Inc. (PINKSHEETS: FXPT) announced today that Resource Polymers Inc, its Canadian operating subsidiary, has finalized its PET recycling plant and that it has began processing PET along with poly-styrene. Created to produce Recycled PET (RPET) and Recycled Polystyrene (RSTYRENE) flake from post-consumer PET bottles and agricultural scrap, Resource will bring the first phase of its Hamilton, Ontario facility to full capacity in the first quarter of 2010.

The primary users of the recycled RPET Flake (Recycled PET bottles) and RSTYRENE (Recycled Agricultural styrene) based products will include carpet, fiber and agricultural manufactures and additionally the recycled resins. The remaining product will be sold for merchant use. The inventory build of waste bottles and agriculture and plant materials to be recycled is well underway with approximately 450,000 pounds of inventory being maintained.

"The start-up of the facility is a milestone for Fox Petroleum in their Sustainability initiatives of reducing environmental impact while creating a viable product for use in their product offerings," said William Lieberman President, Fox Petroleum Inc.

By the end of the first phase of the project, the operation will have the capability to recycle up to 30 million pounds of PET bottles, which will save over 350,000 cubic yards of landfill space each year. The energy savings related to the operation will save over 140.8 Billion BTUs of energy annually, which is equal to the amount of primary energy necessary to power over 2,500 U.S. homes per year, according to Energy Information Administration data.

CNBC recently reported "that that the ethylene market is putting in a bottom, as the amount of new demand is finally expected to exceed the amount of new capacity coming on."

Pricing in the plastics recycling markets always follow the production of raw plastic components as producers increase production with demand and "these are the chemicals that make up the building blocks of the global economy," said a leading financial stock analyst on CNBC while analyzing a leading chemical manufacturer that supplies 40 percent of the world's polypropylene and 35 percent of the world's polyethylene.

A growing awareness of the potential for renewable energy sources and materials in Europe and the U.S., which has been highlighted recently by the BP oil spill, has made alternatives to oil and more carbon intensive energy sources much more attractive certainly in the eyes of a more environmentally aware group of consumers. Recycled plastics will help win over the ethically minded consumer, as recycled plastic does not require constant weather treatment so it will reduce the strain on the environment further with no need for chemical weather treatment.

The company recently purchased from bankruptcy a new 20" x 50" Cumberland Model 50B Granulator with a 150 Horse power motor. The new processing line put together with its vecoplan shredder will enable the company to process close to 3,500 pounds of scrap plastic per hour in the immediate future.

About Fox Petroleum Inc. (PINKSHEETS: FXPT)

Fox Petroleum Inc. is focused on acquiring, developing and operating plastic recycling operations throughout North America. With a focus on plastic waste compounds and the aggregating of plastic scrap products for manufactures. Fox Petroleum's goal is to become an important partner for leading recycling companies who need proficient services.

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This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, and such Forward-Looking Statements are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to the viability of the company's business plans, the effect of acquisitions on our profitability, the effectiveness, profitability, and the marketability of the Company's products; the Company's ability to protect its proprietary information; general economic and business conditions; the volatility of the company's operating results and financial condition; and other risks detailed in the Company's filings with the Securities and Exchange Commission.

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