SOURCE: PetroSun

February 01, 2007 06:00 ET

PetroSun Corporate Update: Algae BioFuels

PHOENIX, AZ -- (MARKET WIRE) -- February 1, 2007 -- PetroSun, Incorporated (PINKSHEETS: PSUD) announced today that the field testing of the cultivation of algae for biodiesel production has now progressed to the final stage prior to the construction of a commercial cultivation facility. This final stage will consist of producing adequate algae paste to test the output and economics of several biodiesel refinery manufacturers now under consideration by Algae Biofuels, a wholly owned subsidiary of PetroSun. The Company will own and operate the production and refinery facilities.

Algae BioFuels is considering sites in Arizona, New Mexico, California, Louisiana and Michigan for its initial commercial cultivation of algae feedstock in the United States. Australia and China are the leading candidates for production and refinery operations in the foreign marketplace.

The Company has modified its initial plan to locate its biodiesel refinery in Arizona to include other areas of the United States that prove to be commercially viable in the cultivation process. "Should the cultivation process prove to be successful outside of the U.S. Sunbelt, Algae BioFuels model is to locate production and refinery sites near major cities and truck routes to reduce the cost of biodiesel in those areas," said Gordon LeBlanc, Jr., CEO of PetroSun. "We view this as an opportunity to produce a renewable energy product that will assist in providing a healthier planet for future generations."

The consumption of diesel fuel in the U.S. for on-highway use is 39 billion gallons per year and increasing over 3% annually. This represents 22% by sales and volume of the total U.S. transportation fuel market. The cost of diesel fuel has increased dramatically the past few years as a result of higher oil prices and refining costs due to the Ultra Low Sulfur diesel laws. Algae-based biodiesel contains no sulfur, is non-toxic, highly biodegradable and is not subject to a commodity risk as is crude oil, corn and soybeans.

PetroSun will be posting additional information on Algae BioFuels on its website at under Renewable Energy.

About PetroSun

PetroSun's current operations are concentrated in the Ark-La-Tex region with plans to expand into New Mexico, Arizona, Utah and Australia in 2007. PetroSun provides a comprehensive array of products and services to the oil industry. Algae BioFuels, a wholly owned subsidiary of PetroSun, is an emerging producer of biodiesel derived from the cultivation of algae. The Company's cutting edge technologies, combined with a proven ability to apply them effectively and safely within a disciplined ROI framework, creates long term value for PetroSun shareholders and partners. PetroSun is headquartered in Phoenix, Arizona. 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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