PURE Biofuels Corp. (PBOF.OB)

Posted: Thu Jan 31, 2008 9:10 pm

PURE Biofuels Corp., a development-stage company engaged in the production, processing and distribution of biodiesel, is poised to become a leader in Latin America's emerging biofuels industry. PURE's flagship project near Lima, Peru – the Callao Port refinery – is complete and will begin production in the first quarter of 2008. Together, the Callao Port and the recently acquired Interpacific Oil facility (12/5/07) will provide a combined biofuel capacity of 62.5 MMgy (million gallons per year) to the marketplace.

PURE Biofuels, founded in 2006, has secured written assurances (MOUs) from local fuel distributors for the full Callao Port annual production capacity, and supply arrangements for all its anticipated production. PURE Biofuels also intends to produce all the necessary feedstock to operate the facility at maximum capacity. To this end, PURE will be using palm oil, which does not impact food supplies and delivers 35 times more fuel per acre than corn. Its environmental platform also includes the sale of carbon credits for its Callao Port facility through EcoSecurities Group PLC. EcoSecurities will help PURE Biofuels secure a Clean Development Mechanism (CDM), as approved by the advisory board of the European Trading Scheme, and buy all the Certified Emission Reduction (CER) credits resulting from the Callao Port operations until 2012. CER credits are those traded between Kyoto-participating countries and non-participating countries.

Operating within the parameters of renewable energy, PURE Biofuels focuses on growth areas where it can find attractive investment opportunities to enhance shareholder value. These areas encompass developing clean fuels (primarily ethanol and biodiesel), promoting and advancing clean-fuel technologies, and the cultivation, harvesting and processing of oil plant feedstock in low-cost growing locations. PURE Biofuel's management believes its South American focus will be both strategically valuable and a key ingredient to building its enterprise into a more global presence.

In the last 20 years, renewable energy investing has been hampered by high capital costs, unpredictable regulatory proceedings, technological challenges, and price fluctuations. However, in the past 3 years, an increasing demand for biofuels, coupled with lower production costs and improved technology, have created a financial climate in which investments in renewable energy represent solidity in the commodities marketplace.

PURE's environmental policy is backed by sustainability. Its employees receive complete family health programs, have an excellent working environment, and recognize opportunities to advance and develop professionally. Its incentive program benefits both employees and shareholders by creating individuals who are vested in the growth and success of the organization.

Energy companies are driven by global commodity prices. Given this premise, PURE has identified three critical elements that must be leveraged in order to maintain profitability. The first is competitive advantage, and PURE plans to build additional factories as funding permits. The second is supply, and PURE intends to own and develop palm-oil plantations to avoid the fluctuations of international commodity pricing. The third is distribution, and it is PURE's assessment that today's infrastructure will be immediately adequate, allowing planned financing of future upgrades.