SOURCE: BlueFire Ethanol

August 16, 2007 12:07 ET

Letter From BlueFire Ethanol CEO, Arnold R. Klann

IRVINE, CA--(Marketwire - August 16, 2007) - BlueFire Ethanol Fuels, Inc. (OTCBB: BFRE) CEO Arnold Klann writes to the BlueFire Ethanol Fuels, Inc. shareholders.

In light of recent market activity I felt it pertinent to update the BlueFire shareholders on BlueFire's progress and views of the recent sharp decline in stock price.

BlueFire cannot attribute the stock decline to a single cause but the overall market decline, traditional producer shortfalls and aggressive selling of the company's stock may have all influenced the stock price.

BlueFire continues to achieve its milestones in development and deployment of its proprietary cellulose to ethanol technology. Our first facility, located in Lancaster, is on target to break ground in the fourth quarter this year with completion and start of production in the third quarter of 2008. The Lancaster facility is the first of the previously announced 20 plants in our 8 year deployment strategy. The El Sobrante facility licensing and permitting is on schedule for a second quarter 2008 ground breaking. Funding for the Lancaster facility is proceeding on schedule.

The recent sharp decline in stock price does not reflect where we are currently as a company, nor any of the future possibility of a technology which could help to free the United States of its dependence on foreign oil. As BlueFire continues to hit milestones and targets we are confident our stock price will reflect the company's operations and successes. Although we cannot predict market trends, as we progress to one of the national exchanges our stock will trade more in line with overall market volatility and pricing.

Thank you for your continued support. We look forward to updating you on the deployment of our revolutionary technology as we move toward our first domestic production facility.

In closing, we at BlueFire will continue to strive to build shareholder equity by forging strategic industry relationships, continuing our facility development and deployment and closing in on our goal to not only be the worlds largest and lowest cost cellulose to ethanol producer, but the lowest cost producer of ethanol period.

Arnold R. Klann

For regular updates on BFRE please click on the following link:http://www.b2i.us/irpass.asp?BzID=1437&to=ea&s=0

About us:

BlueFire Ethanol Fuels, Inc. is established to deploy the commercially ready, patented, and proven Arkenol Technology Process for the profitable conversion of cellulosic ("Green Waste") waste materials to ethanol, a viable alternative to gasoline. BlueFire's use of the Arkenol Process Technology positions it as the only cellulose-to-ethanol company worldwide with demonstrated production of ethanol from urban trash (post-sorted MSW), rice and wheat straws, wood waste and other agricultural residues. Our goal is to develop and operate high-value carbohydrate-based transportation fuel production facilities worldwide. These "biorefineries" will convert widely available, inexpensive, organic materials such as agricultural residues, high-content biomass crops, wood residues, and cellulose from MSW into ethanol. BlueFire intends to build a multinational company that leads the world in producing biobased transportation fuels. Its business will encompass development activities leading to the construction and long-term operation of production facilities while maintaining technological advantage and ownership of the process technology and all its improvements. Ethanol will be produced from biorefinery facilities opportunistically constructed on or near landfills, waste collection and waste separation sites. Each facility will deploy the proprietary technology, which uses all cellulosic waste materials traditionally disposed of in landfills as feedstock. www.BlueFireEthanol.com

FORWARD-LOOKING STATEMENTS

Statements about BlueFire Ethanol, Inc.'s expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Litigation Reform Act of 1995. BlueFire's actual results could differ materially from expected results. BlueFire undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this press release; BlueFire will appropriately inform the public.

Contact Information

  • Institutional Investment Advisor:
    Paul Gozzo
    President
    PMG Capital, LLC
    Tel. 888-747-5397
    Fax. 888-799-9741
    pmgcapital@hotmail.com

    Investor Relations Contact:
    Gerald Kieft or Ryan Audin
    Wall Street Resources, Inc.
    2646 SW Mapp Road, Suite 303
    Palm City, Florida 34990
    772-219-7525
    http://www.wallstreetresources.net