Q&A on Northest Biofuels and the 38M Financing

The SkunK emailed Mr. Kreisler the following question tonight and here is his response.

Question: Can you provide investors information on what effect Northeast Biofuels filing for bankruptcy protection may have on the timing of the anticipated inking of the CleanBioEnergy $38M finance deal?

Mr. Kreisler's Reply

1 - The GE EFS deal was executed on December 11, 2008 and we are working through the conditions required for the release of capital.

2 - NEB experienced some unfortunate set backs arising from the failure of its EPC contractor, Lurgi, to perform as warranted. This resulted in a long term shut down of their operations pending implementation of corrective action. While, our understanding is that this corrective action includes a restructuring, we also understand that the best path forward for all of NEB's creditors and shareholders is to repair, commission and then operate their now idle production facility - and to facilitate the deployment of our COES Facilities. NEB is backed by strong operational and financial management and we are glad to work with them on COES MI today and MII later regardless of whether their operations are conducted in or out of Chapter 11. We have not yet determined what the impact will be of these events on our current deployment schedule.

3 -We have a fairly deep pipeline of contracted COES Facilities and new qualified clients that are eager to take advantage of our established technology leadership and our 100% financing program.

I would like to thank Mr. Kreisler for his response.

SkunK