Raven Biofuels Updates Joint Venture Status With Canadian Development Partners on Biorefinery Project

29 January 2010 -- Raven Biofuels International Corporation (RVBF) updated shareholders on the Joint Venture between Raven Biofuels Ltd and the Kamloops Indian Band. Raven said the purpose of the RBL/KIB JV is to further the planning required to construct a "next generation," advanced cellulosic ethanol biorefinery (The Tk'emlups Biorefinery Project). This project responds to current initiatives in British Columbia to develop new environmentally sustainable technologies and innovation opportunities in the forestry sector.

The joint venture agreement outlines the main terms of the contributions and cooperation of the parties for development of the Biorefinery utilizing technology and input provided by Raven and fibre supply and other resources provided by KIB. Under the agreement KIB will retain a 51% interest in the Biorefinery and have an option to participate in other related business opportunities in Canada.

The JV intends to: identify and secure a suitable industrial site with access to power, steam, road, rail and 15+ acres located in the Kamloops area; work with Sandwell Engineering to determine process improvements, design, costing and permitting; and conduct all necessary studies to prove feasibility.

KIB brings significant access to feedstock resources secured via a multi-year Provincial forestry agreement in which KIB has rights to 124,000 cubic metres of beetle-killed wood within the Kamloops Timber Supply Area. The forestry agreement augments a forest and range agreement signed by the band in 2005, which granted $2.5 million in shared revenues and 272,000 cubic metres of timber over five years.

The proposed Biorefinery is commercial scale with an annual output of 7 million gallons (7 MGY) of fuel grade ethanol and 4 million gallons (4 MGY) of furfural, furfural alcohol, related eco-friendly derivative chemicals and lignin cake. This will require a continuous supply of approximately 500 dry tons / per day of cellulosic waste. This feedstock would primarily be wood chips from regionally-sourced, mountain pine beetle-killed wood as well as other appropriate residue from fibre in the area.

The Biorefinery, when completed, would employ approximately 30 people directly and provide other related regional economic benefits such as the ongoing provisioning of feedstock to the refinery and further plan to assess the possibility of training programs undertaken by Raven in conjunction with local technical schools for the purpose of establishing employment opportunities for band members in plant operations.

Company Management, in conjunction with its engineering firm, will conduct an assessment of all necessary permitting and conduct a full environmental survey in accordance with government guidelines.

Further specifics outlining the agreements between both parties will be made upon completion of negotiations, full details of which will be made publicly available at that time as part of the Company's regulatory disclosure filings with the Securities and Exchange Commission.

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