Vega Biofuels Explores Options to Increase Bio-Coal Production
Capacity to Meet Demand

Company Concentrating on Quicker Time to Market and Increased
Capacity to Fill Orders

VEGA BIOFUELS, INC. (PINKSHEETS: VGPR) announced today that
the Company is exploring options to increase production capacity of
its Bio-Coal product to meet current demand.
Vega recently announced it has entered into a Joint Venture to build
and operate a manufacturing plant in Allandale, SC to produce a
product called Bio-Coal. When completed, the manufacturing plant
will use special torrefaction technology to produce the Company’s
green-energy Bio-Coal product from timber waste that will then be
sold to power companies around the world. Bio-Coal has a high energy
density of up to 13,000 BTUs/Lb and is considered a renewable energy
fuel that meets the Renewable Portfolio Standards and Renewable
Energy Credits (RECs) in the United States.

The current production capacity for the Company’s Joint Venture in
Allendale is not sufficient to meet the current demand for Vega’s
Bio-Coal. Therefore, representatives of Vega are currently in
discussions with Colorado based Vencor International, Inc.
(PINKSHEETS: VCOR) concerning Vencor’s ability to provide Vega a
torrefied product that meets the specifications of the Company’s
Bio-Coal product. Vencor is currently testing its product pursuant
to strict specification requirements provided by Vega.

“It’s no secret, our current production capacity is not enough to
meet the demand for our Bio-Coal product,” stated Michael K. Molen,
Chairman/CEO of Vega Biofuels, Inc. “In time I believe the
production capacity at the Allendale plant will be increased and
catch up to the demand, but we have orders now that have to be
produced, so we are exploring other options to meet this demand. I
have gotten to know new Vencor CEO, James Gaspard through our
biochar business and he believes that they can provide us with a
torrefied product that will meet the strict specifications for
Bio-Coal. We have asked Vencor to provide us with certain test
results of their product and we expect those results before the end
of the month. If the product meets our specifications, we will place
an order with Vencor that would give us the ability to start
shipping product by the first of the year. Our goal is to supplement
Allendale’s production capacity, not replace it.”

Torrefaction is a partial carbonization process that takes place at
temperatures between 475 – 575 degrees in a low oxygen environment
which makes the physical and energetic properties of the biomass
much more comparable to traditional coal. The biomass is then
compressed into briquettes called Bio-Coal to be sold to the end
user. Torrefaction has the added benefit of reducing or eliminating
undesirable volatiles, such as nitrous oxides and sulfur dioxides
and is considered carbon neutral to the environment. Existing
coal-fired power plants do not need to retrofit their existing
plants to accommodate the torrefied Bio-Coal.

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.