NZ Media Release

March 31, 2008

Aquaflow makes crucial algae biofuel breakthroughs

Two further major breakthroughs have been achieved by Blenheim-based Aquaflow Bionomic Corporation which has been working on world-leading technology to convert wild algae to biofuel.

“We have now achieved commercial scale continuous harvesting of tonnes of wild algae at the Marlborough oxidation ponds so we can take the step up to commercial scale production of biocrude,” says Aquaflow chairman, Barrie Leay.

“We have also commissioned our newly built proprietary biorefinery and made our first machine run. We expect to make further announcements in that regard in the next few months. These are major steps forward for us and we expect to be able to produce commercial quantities of biocrude within the next few months,” he explains.

These breakthroughs follow the world-first proof of concept biodiesel, produced from algae, and demonstrated by Aquaflow when the Minister of Energy; Hon. David Parker, drove an unmodified standard Land Rover along the Wellington Motorway in December 2006, powered by Aquaflow biodiesel.

Leay says Aquaflow is a ‘clean’ fuel.

“In the Aquaflow process there is no conflict with land use or with the production of food crops as is occurring in America and Europe, which is becoming an increasing world problem.”

Leay explains that the essence of Aquaflow’s process is to use algae to capture ‘current sunlight’ through photosynthesis, which is the identical process used millions of years ago, when the world’s oil and gas deposits were laid down, using ‘ancient sunlight’.

“But as we all know those sources of captured ‘ancient sunlight’ are now being rapidly depleted as we reach Peak Oil.

“An extraordinarily beneficial by-product of the Aquaflow process is potentially releasing a clean water resource of millions of litres of clean water - to be recycled and available for use in irrigation, industrial washing, cooling, and so on.”

Aquaflow’s technology has already been licensed for much of Asia, through Aquaflow’s 20% cornerstone shareholder PurePowerAsia.

www.aquaflowgroup.com

ENDS