SOURCE: PetroSun, Inc.

February 25, 2008 11:59 ET

PetroSun BioFuels Reaches Agreement to Acquire Interest in Biodiesel Refinery

SCOTTSDALE, AZ--(Marketwire - February 25, 2008) - PetroSun BioFuels, Inc., a wholly owned subsidiary of PetroSun, Inc. (PINKSHEETS: PSUD), has entered into an agreement to acquire a fifty percent interest in Fleet Biodiesel, Inc., an Alabama corporation. Fleet Biodiesel is currently completing the acquisition of an 82.5% interest in Eagle Biodiesel located in Bridgeport, Alabama.

The Eagle Biodiesel assets include a biodiesel refinery, port access to the Tennessee River, five-truck tanker fleet and a retail biodiesel station. The biodiesel refinery is currently producing and selling 60,000 gallons per month and is in the process of expanding its monthly production to four million two hundred thousand gallons.

PetroSun BioFuels will provide algal oil to the Bridgeport refinery for the increased feedstock requirements within the next twelve months.

About PetroSun

PetroSun's operations include oil and gas exploration, development and production and algae-to-algal oil alternative fuels production. The oil and gas division is focused on the exploration of the Holbrook Basin of Arizona, the San Juan Basin of New Mexico and Australian-based prospects. The Company will continue the development of oil and gas reserves in Louisiana. The alternative fuels division has entered the commercial stage of its algae-to-biofuels production technology. The Company plans to establish algae farms and algal oil extraction plants in Alabama, Arizona, Louisiana, Mexico, Brazil and Australia during 2008. The algal oil product will be marketed as feedstock to existing biodiesel refiners and planned company owned refineries. PetroSun is headquartered in Scottsdale, Arizona with field offices in Shreveport, Louisiana and Opelika, Alabama. For more information about PetroSun, visit the company's website at

Except historical matter contained herein, matters discussed in this news release are forward-looking statements and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risks and uncertainties, which may affect the Company's business and prospects and cause actual results to differ materially from these forward-looking statements.

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