Peat Resources Limited

Peat Resources Limited

May 13, 2011 11:19 ET

Update on Development of Peat Resources

TORONTO, ONTARIO--(Marketwire - May 13, 2011) - Peat Resources Limited (TSX VENTURE:PET) is in continuing discussions with potential customers in Canada, Europe and Asia about burning peat fuel to provide power in multiple projects worldwide. Peat Resources' management believes that this is in response to the increasing global demand for long-term supply of biofuel.

In Newfoundland, Peat Resources Limited holds rights to extensive peat fuel resources. There is an opportunity for large-scale development of these deposits to produce up to five million tonnes per year of peat fuel pellets for export to global markets, especially in Europe and Asia. A biomass fuel such as peat, produced by the Company's innovative wet harvesting process, would satisfy European sustainability criteria. The large Newfoundland resources would satisfy global customer concerns about security of supply and could provide long-term (plus-20-year) contracts. Peat Resources Limited has built a business model based on adding production capacity of 200,000 tonnes per year, for five years, in each region where the Company has peat properties.

In Ontario, the Ring of Fire mineral discoveries at McFaulds Lake in the James Bay Lowlands remain an opportunity for Peat Resources. Electrical power for both the mine site operation and processing facilities continues to be one of the main issues with the development of this project. The Ontario Provincial Government has pledged to support the Ring of Fire development. Peat fuel could help the provincial government meet its promise to stop the burning of coal for electricity generation but keep the northern power plants running at full capacity (generating about 500 megawatts) to satisfy the future energy needs. Peat Resources Limited has NI 43-101 resources of fuel-grade peat in northwestern Ontario that can supply OPG's Atikokan generating station for more than 20 years.

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