SOURCE: KleanGas Energy Technologies, Inc.

September 15, 2014 11:15 ET

Kleangas Announces Strategy Going Forward

Open Letter to Shareholders

TAMPA, FL--(Marketwired - Sep 15, 2014) - Kleangas Energy Technologies, Inc. (OTC Pink: KGET) (PINKSHEETS: KGET):

Dear Shareholders,

Every day, Kleangas receives e-mails and views posts from people asking for news, information, and updates. I would like to take a moment to update our shareholders on our direction as a company.

We are going through a shift from a broker based income strategy to a production based income strategy. The reason for this is a good one for our company. We anticipated a robust brokerage season that would generate significant revenue growth. What happened is that the biomass pellet energy market is growing faster than anyone anticipated. As a result there is insufficient production on the market to sustain a brokerage system. We saw this coming, but it has arrived sooner than we could get our production ramped. Due to this increased demand we have not hit the brokerage goals we originally planned. What it does mean is that we are poised to plunge into a robust and strengthening market as our production comes online.

Key to our production strategy was the acquisition of SCR. While the wood pellet industry is strong and growing stronger, it is a market which already has solid players. We will produce wood pellets but it will be part of a larger pellet portfolio. There are numerous sources of potential biomass that offer a more promising future than wood. These are annual plants that can be cultivated in a single year, versus trees which require multiple years of growth prior to harvest. Many of these plants however, have no established pelleting methodology in place. If we were going to pioneer new sources of biomass for the energy pellet market we needed a strong research component to accomplish that. That research component is SCR. They have developed products that have bested every competitive product on the market for animal bedding and kitty litter they have faced. They have developed a potpourri line made from paper pellets that has a longer lasting scent than their competitors. They are well into testing that will bring their pellets into the agricultural markets and the building materials markets. This expertise and ability to think of ways to use a pellet that no one has thought of before make them an invaluable asset to our energy pellet business going forward.

SCR has two production lines scheduled to be operational in early 2015. The plan is to have two additional lines in production by mid-2015. We will then begin setting up energy pellet production lines with new sources of biomass to take Kleangas Energy Technologies into a thriving and rapidly growing biomass energy pellet industry.

We have a great plan and a great strategy in place, and our future is amazing. 

Sincerely,

Bo Linton
CEO

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About Kleangas:
Kleangas Energy Technologies, Inc., is a company dedicated to producing alternative clean technologies and products that promote energy efficiency throughout a wide range of applications. Through its wholly owned subsidiaries Kleangas manufactures and sells wood pellets as an alternative to coal and a waste heat to electricity patented technology. Green Day Technologies Inc. has licensed patented waste heat to electric power generation technology and works as a co-generator when installed on a primary electrical generator unit. It is also powerful enough to serve as a primary energy source. Green Day's subsidiary G-PEL also has pending contracts to sell refuses and biomass derived pellets, which are alternatives to producing electricity instead of the traditional method of burning coal. Second Cycle Recycling subsidiary of Kleangas creates pellets made from recycled paper to be used for cat litter, animal bedding and a variety of other used to be developed.

Safe Harbor Statement:
Safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as Kleangas or KGET or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe the Company's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.

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