SOURCE: Vega Biofuels

October 30, 2014 11:14 ET

Vega Biofuels Lays Out Construction Schedule for Pilot Torrefaction Plant

Phase 1 Construction Started at the Company's Allendale, SC Site

NORCROSS, GA--(Marketwired - Oct 30, 2014) - VEGA BIOFUELS, INC. (PINKSHEETS: VGPR) announced today that construction has started at the site of its Joint Venture with Agri-Tech Producers, LLC in Allendale, SC.

Vega recently announced it has entered into the Joint Venture to build and operate a pilot manufacturing plant in Allendale, SC to produce Bio-Coal, among other torrefied products. When completed in Q1 2015, the plant will use a patented torrefaction technology to produce the Company's green-energy Bio-Coal product from plant and wood biomass, which will then be sold to power companies around the world. A clean and renewable alternative to traditional coal, Bio-Coal has a high energy density of up to 13,000 BTUs, and is a fuel that meets the EU's requirements and those of the Renewable Portfolio Standards and Renewable Energy Credits (RECs) in the United States.

The Joint Venture, ATP-SC has leased a 15-acre site on which its operations will be located. Its sub-tenant, Statiol, SA, will also locate a pellet plant on the site, as a part of phase 1 site development, which includes Statiol's investment in shared infrastructure. Recent pictures show the portion of ATP-SC's site on which Statiol's construction has begun. ATP-SC's facilities are to be developed in phase 2 as Statiol completes its construction. In addition, Statiol's experienced management will be assisting ATP-SC's operations, including pelletizing some of ATP-SC's Bio-coal output.

Immediately adjacent to the manufacturing site, ATP-SC has leased a 40-acre farming site on which various bio-crops will be grown for demonstration and testing purposes. ATP-SC celebrated National Bio-Energy Day, on October 22nd, by announcing that the farming site had just been planted with canola, a winter oil-seed crop which will be replaced by bio-crops in the spring.

Michael K. Molen, Chairman/CEO of Vega Biofuels, Inc., stated, "We are happy to announce that construction has started at the Allendale site. There was some confusion about the pictures we released a couple of weeks ago. Even though construction has started at the site, the framing work shown in the pictures is part of phase 1 site development. The building that will house ATP-SC's torrefaction machine has not broken ground yet. That is part of phase 2 on the site and is scheduled to be completed during Q1 of 2015."

Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "project," "intend," "expect," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (finance or operating) or achievements to differ from future results, performance (financing and operating) or achievements expressed or implied by such forward-looking statements.

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