BiofuelsHK, Ltd. signs MOU with XL Renewables, Inc.

$150 million algae biomass project in China to begin in 2010

At a signing ceremony in Beijing, China on October 23, 2009, BiofuelsHK, Ltd., a Hong Kong based renewable energy company, signed a Memorandum of Understanding with XL Renewables, Inc, of Phoenix, Arizona.

The project goal is to produce 150,000 metric tons of algae biomass and extract over 15 million gallons of algae oil annually.

BiofuelsHK has three sites that will be evaluated by an XL team in November. A $2.5 million 40-acre pilot facility will be developed in early 2010 for spring production.

If production milestones are achieved during the 2010 production season, the full project of 2,880 acres will be developed beginning in the fall of 2010 for 2011 production.

A formal public announcement about the project will be made in November.