Phyco 160 Project

$10 million Production and Processing Facility

Phyco BioSciences, Inc. has contracted with XL Renewables, Inc. to develop a 160 acre algae biomass project in Arizona. The project is expected to break ground in February 2010 subject to final capitalization.

The Project will inlude Four - 40 acre fields that produce dried algae solids. The algae solids will be processed at a regional Algae Mill to extracting oIls for biofuels and nutritional oils, and pelletizing algae meal blends into branded feed products for aquaculture, pet foods and animal feeds.

• Demonstrates Commercial Algae Biomass Production
• Regional Algae Mill provides Market for other Producers

The regional Algae Mill will provide a ready market for other producers who can supply dried algae solids to Phyco BioSciences, Inc. The mill capacity will be in excess of 40,000 tons annually.

The project will produce an estimated 7,500+ tons of algae biomass annually generating an estimated $5+ million in annual sales. The estimated project cost is $10 million.