Western Biodiesel Inc. Launches Expansion Equity Offering

September 24, 2007

Since completing the November, 2006 version of the WBI Business Plan, the biodiesel market has continued to develop at an ever accelerating pace.  A basic premise of the November plan was to construct a small 19 MM litre per year mixed feedstock plant and double capacity in 2010 to meet the market growth.  This plan provided WBI the opportunity to be first into the Alberta market and capture first mover advantages such as: accelerated market share growth, media opportunities, feedstock contracts, and a large slice of the federal and provincial government’s producer grant and credit programs.

We have had an opportunity to further refine our strategic growth plan.  Our vision is to become the dominant player in the fats based biodiesel production market in Alberta and expanding rapidly will provide the opportunity to capture a 50% or greater share of the Alberta tallow feedstock market.  The primary objective is to grow cash flow more aggressively to create greater shareholder value and make WBI more attractive to the public markets (i.e. IPO).  Our expanded vision and timelines have created a more aggressive expansion plan which will potentially see WBI with a total productive capacity of 196 million litres per year by 2010.  The July, 2007 Alberta provincial government announcement of a “cap and trade” carbon emission reduction program provides WBI with further revenue opportunities not built into the base plan revenue assumptions.

WBI intends to raise up to $20 million during the Q3, 2007 to invest in the construction of a 76 million litre per year expansion facility with a Q1, 2009 commercial start-up.  We intend to raise $10 million of new equity at $3.00/shr and the remaining $10 million through debt, grant funds and cash.  Contact WBI for further series B investment information.