Solix Biofuels Begins Large-Scale Production of Algae-Based Biofuels at Coyote Gulch Demonstration Facility

COLLINS, CO -- (Marketwire) -- 07/23/09 -- Solix Biofuels, Inc. ("Solix"), an alternative energy technology company for the large-scale commercialization of microalgae-based fuels and co-products, announced today the completion of construction and start of algal oil production at its Coyote Gulch Demonstration Facility. Algal oil production began on July 16, 2009 following the inoculation of the facility with microalgae. The Coyote Gulch Demonstration Facility will be in full-scale commercial operation by late summer 2009.

The Coyote Gulch Demonstration Facility is expected to be producing the equivalent of 3,000 gallons per acre, per year of algal oil by late 2009. During the peak growth season, microalgae can be harvested every 5-7 days. The total facility is located on a two-acre site in southwestern Colorado, on land provided by Solix's partner, the Southern Ute Indian Tribe, and is fully integrated with an industrial plant producing CO2 and water as waste products. Solix has plans to expand to more acres of production at the Coyote Gulch location in the near future. In addition, as the site expands, the Coyote Gulch Demonstration Facility will provide new jobs to the Durango area in southwestern Colorado.

Rich Schoonover, Solix's chief operating officer, oversaw Thursday's inoculation: "Today's inoculation was an exciting moment for Solix, the state of Colorado and our country. We are ready to prove to the world the viability of algae as an alternative to petroleum-based fuels."

"The inoculation of the Coyote Gulch Demonstration Facility marks a major milestone for the algal fuel industry," said Doug Henston, chief executive officer of Solix. "We are proud to contribute to this new era of algal fuel production, making Solix an alternative energy industry leader," he continued. Solix's technology responds to the strategic imperatives of the new energy economy, namely renewable sources of energy, diversification from petroleum-based fossil fuels and job creation. We are excited to be creating a viable alternative energy source to petroleum-based fuels and new jobs in the process," said Rich Schoonover.

About Solix Biofuels

Solix Biofuels, Inc., based in Fort Collins, Colo., is an alternative energy production technology company with emphasis on supplying low-cost, scalable photo-bioreactors that will enable the global production of biofuels using microalgae as a feedstock. Solix is an intellectual descendant of the U.S. Department of Energy's Aquatic Species Program, which started in 1978 to explore ways to produce biodiesel from algae. In early 2006, Solix was created to continue this work, with a goal of creating a commercially viable biofuel that will help solve climate change and petroleum scarcity without competing with global food supply. For more information visit www.solixbiofuels.com.

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Solix Biofuels, Inc.
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