SOURCE: Planet Resource Recovery, Inc.

December 08, 2011 10:30 ET

Planet Resource Recovery, Inc. Declares Weisenberg/Inspar Field Services, LLC in Default of Mediated Settlement Agreement

HOUSTON, TX--(Marketwire - Dec 8, 2011) - Planet Resource Recovery, Inc. (PINKSHEETS: PRRY) announced today that after months of good faith negotiations and a Mediated Settlement Agreement, by and between Planet Resource Recovery and Kurt Neubauer v. Kent Weisenberg and Inspar Field Services, LLC, Kent Weisenberg and Inspar Field Services, LLC are in default of the Agreement.

On May 31, 2011, the parties to Civil Action No.4:10-cv-05086, pending in the United States District Court for the Southern District of Texas (Houston Division), agreed to settle their disputes and entered into a Mediated Settlement Agreement. The material financial terms of the Mediated Settlement Agreement are as follows: Kent Weisenberg agreed to pay Planet Resource Recovery, Inc. a total of $575,000 ($72,250.99 of which was to be paid directly to specific Planet Resource Recovery, Inc. and Inspar Robotics, LLC creditors) and return all Planet Resource Recovery, Inc. shares, (17,214,285 common shares) held by the plaintiffs and nominal parties to that action. In exchange, Planet Resource Recovery, Inc. agreed to return and/or convey all Inspar Robotics intellectual property to Weisenberg and dismiss all counterclaims. In addition, Kent Weisenberg and Planet Resource Recovery, Inc. resolved their dispute on mutually agreeable and satisfactory terms. The Parties agreed that they hereby rescind all prior statements made against the other. This settlement resolved all claims and counterclaims pending between the parties, including former Planet CEO Kurt Neubauer.

The original terms of the Mediated Settlement Agreement called for an initial payment of $425,000 (inclusive of the direct payments to creditors) on or before August 1, 2011, with a $150,000 letter of credit issued by a third party financial institution in Planet Resource Recovery, Inc.'s favor, payable on or before July 11, 2012.

On July 29, 2011, Kent Weisenberg and Inspar Field Services, LLC requested and Planet agreed to modify the Mediated Settlement Agreement in exchange for a $5,000 cash payment and Weisenberg's agreement to pay the entire $575,000 in full (including direct payments to creditors) on or before August 16, 2011.

On August 19, 2011, Kent Weisenberg and Inspar Field Services, LLC requested and Planet again agreed to modify the Mediated Settlement Agreement in exchange for a $40,000 cash payment toward the settlement and Plaintiff's agreement to pay to Planet the entire remaining balance (including direct payments to creditors) on or before September 29, 2011. Weisenberg paid the $40,000 on August 19, but failed to meet the obligations by September 29, 2011, thus being in breach of the remaining terms of the Mediated Settlement Agreement, as modified.

On October 6, 2011 Planet formally demanded that Weisenberg cure the default. As of the issuance of this release, Weisenberg and Inspar Field Services, LLC remain in breach of the Mediated Settlement Agreement.

Planet has declared a default, and is in the process of evaluating its best course of action, including litigation. The parties are currently in negotiations to address the breach of the Mediated Settlement Agreement.

About Planet Resource Recovery, Inc.

Planet Resource Recovery, Inc. is the developer, manufacturer and marketer of PetroLuxus™, a Green Technology that maximizes hydrocarbon recovery in the Oil & Gas industry. Documented well history case studies indicate deployment of PetroLuxus technologies has helped Oil & Gas Operators reduce maintenance costs, decrease downtime and increase oil recovery. For more information visit: www.planetresource.net.

Safe Harbor Statement

Under The Private Securities Litigation Reform Act of 1995: The statements in this presentation that relate to the Company's expectations with regard to the future impact on the Company's results from new products in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The results anticipated by any or all of these forward-looking statements may not occur. Additional risks and uncertainties are set forth in the Company's Annual Report for the year ended December. 31, 2009, the Company's Quarterly Report for the First quarter ended March 31, 2010. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations.

Contact Information

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    Planet Resource Recovery, Inc.
    281-213-5622
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