News Section

Investor News - January 2009

New Office Location In Vegreville

BioStreet Canada has opened a satellite office in Vegreville to develop a stronger presence in the region. Darrell Michaels, President is currently based here and travelling around the province in January and February hosting information and investment seminars. For a complete list of seminars, visit our home page.

More Biodiesel Mandates in the West

Following the lead of the BC government, which announced a 5% biodiesel blending mandate for 2010, the government of Alberta recently announced a 2% mandate, and Manitoba has confirmed that they will soon release details of a mandate to come into effect in 2009. These mandates are a significant benefit to BioStreet Canada, as they provide potential investors a higher level of certainty that a strong Canadian market for biodiesel will exist when the Vegreville Energy plant comes online.

Technology Provider Update

BioStreet’s Vice President, Angela Reid, and two members of the engineering team from Trimark, made a short trip to Austria in November to meet with BDI Biodiesel in Graz, and to tour one of their plants in Vienna. BioStreet has been considering and analyzing the economic advantages of the BDI technology since mid 2008. In order to make final clarifications on the technical details, the team met with several of the engineers and technicians at BDI’s impressive headquarters. Extensive presentations, a visit to an operating plant in Vienna and the opportunity to speak to the Vienna plant’s CFO, provided BioStreet’s team with a high level of confidence in the well-proven BDI technology. It is one of the most efficient in the world, with a 99.8% biodiesel conversion rate. This technology will greatly improve the flexibility, productivity and efficiency of the Vegreville Energy biodiesel plant. An update to the cost estimate and scoping document is being completed by Trimark as they finalize the Design Basis Memorandum, scheduled for completion in February 2009.

Technology Provider Update

Several industry and financial organizations are already applauding the new US administration’s energy policy.

The Canadian Renewable Fuels Association has released a formal statement:

OBAMA ADMINISTRATION PUSHES ACCELERATOR FOR RENEWABLE FUELS OTTAWA:

The inauguration of Barack Obama as the new President of the United States yesterday has combined with Canadian efforts to spark a North American explosion in the growth of renewable fuels, says Gordon Quaiattini, President of the Canadian Renewable Fuels Association (CRFA).

“When President-elect Obama took the oath of office, a new North American consensus in favour of cleaner and greener renewable fuels was confirmed,” says Quaiattini. “The Obama administration is set to super-charge the North American renewable fuels sector with an unprecedented investment in cleaner and greener energy sources, including ethanol and biodiesel. Combined with existing Congressional plans and the efforts of federal and provincial governments here in Canada, our sector is to experience explosive growth.”

In a similar release, Deloitte has expressed support for the new direction:

Administration of Change: The Obama Impact on Energy Policy

Over the next four years, the new administration must do the hard work of defining and putting in place a vision for the wholesale transformation of our society to one that has a sensible long-term energy policy — and is also clean and green. Read a perspective from Joseph A. Stanislaw, independent senior advisor, Energy & Resources, Deloitte LLP, and explore more outlooks, articles and reports from Deloitte below.

Investor News - November 2008

Ernst & Young Retained

BioStreet has entered an agreement with the Ernst & Young Renewables Division in London, U.K., (see website) to manage BioStreet’s commercial contracts and investors. They are very excited about the Vegreville Energy Project and the market in Canada, having selected it from several similar projects around the world. As soon as some key milestones are met, their 15 years experience in development and finance in renewable energy projects will put BioStreet in the forefront of the Canadian industry, setting the stage for the development of more projects and increased shareholder appreciation.

BioStreet Awarded $250,000

The Alberta Government has again showed support for BioStreet’s Vegreville Energy project. A grant for $250,000 has been awarded for the completion of Phase 3, Design Basis Memorandum (DBM), and the beginning of Phase 4, Front End Engineering Design (FEED). This work should be finished early in 2009, and will bring the project to the point where deposits for equipment purchase, detailed engineering and the selection of a construction team will begin. To date, BioStreet has been awarded over $750,000 in federal and provincial grants, which have been used almost exclusively for engineering.

Navigating the Storm

We’ve been getting a lot of calls and emails from BioStreet shareholders recently about how the recent financial crisis will affect their investment. It's hard not to feel the fear in this market. We know, we feel it too.

You’re probably hearing the same talk that I am about why you should stay invested and don't miss the upturns, etc., etc. Despite the financial shellacking we've taken in recent weeks, we have still not seen the true hair‐on‐fire, Iwant‐ out‐at any cost panic , at least, not yet. "Hope” is not a viable investment strategy, even though many investors continue to hang onto that emotion.

Remember that the doom doctors that seem to have all the headlines now make headlines precisely because they're so extreme. And don't forget that certain trends, like the growth in Asia, energy, and inflation, for example, haven't disappeared. They've still got trillions of dollars behind them and are still virtually unstoppable; they've just been pushed from the front page in recent weeks. There's a lot more value and upside than most people think. In the meantime, make sure that fear strikes out, and not you. Just play it smart.

Regardless of how bad it gets, he demand for clean, domestic energy such as biodiesel is not going to disappear, especially, when you throw fossil fuel depletion into the mix. So while most investors are licking their wounds, BioStreet shareholders can rest assured that we have the cash to swim upstream against the credit crisis, towards positive revenue growth. Demand for renewables has not been deterred at all. In fact, now that Canada has received Royal Assent to mandate biodiesel and the tax credit extension in the U.S. has been passed, demand is stronger than ever.

Despite a temporary financial slowdown, energy demand is still forecast to significantly rise in the short‐, medium‐, and long‐term:

It's true the International Energy Agency (IEA) has cut its short‐term forecast by 240,000 barrels per day (bpd) for 2008 and by 440,000 bpd for 2009, but those numbers are a drop in the bucket. However, First of all, even with the cut in the IEA's short‐term forecast, the overall prediction for 2008 and 2009 is still an increase in demand. Of course, that means we still need an increase in supply if we're to keep the wheels turning and the lights burning. The IEA still expects global oil demand to total 86.5 million barrels per day this year and 87.2 million barrels per day next year, which is still higher than the 85 million bpd or so we used in 2006. So demand is still on the rise. And demand is still on pace to reach 113 million bpd in 2030.

Oil production will likely never reach 113 million bpd, and biofuels will help sooth the demand. This is a fundamental principal of BioStreet's philosophy, one that can't be shaken by this temporary financial mess. What's more, our energy needs (and energy supply shortfalls) aren't limited just to oil. According to an electricity demand study by the Energy Information Administration (EIA), electricity demand is expected to increase 29% in the next 22 years, "from 3,659 billion kilowatt‐ hours in 2006 to 4,705 billion in 2030, at an average rate of 1.1 percent per year.” To make up for this surging demand for both oil and electricity, the use of renewable energy is going to be significantly ramped up.

We saw an around‐the‐world interest rate cut in major economies, and we know that "20% by 2020" renewable energy production targets are in place across the European Union and several emerging markets like China. So even though plenty of what has happened over the past few weeks is without historical precedent, it's hard to believe that in renewable energy, where the international community has played it smart, everyone's going to jump ship and scuttle their own clean growth goals.

In fact, renewable energy initiatives in places like Germany and Japan have set the standard for Canadian and U.S. action, proving that foreign economic powers are ready to take the lead when necessary. However this shakes out over the coming months, renewable energy is at the top of every government's priority list. The international economy developing around renewable fuel sources is vibrant and cooperative, and the stock market opportunities are plentiful.

With the U.S. election next week, and most critical state polls heavily favouring the democratic candidate, let's use Barack Obama's alternative energy plan as a springboard.

An Obama‐Based Alternative Energy Economy

Obama's plan is indeed an Apollo project for alternative energy. The plan seeks to rapidly accelerate the world's transition to renewable fuels, while turbo charging the economy and weaning us off our dependency for cheap credit at the same time. Here's what Time Magazine had to say about his plan in relation to the current economic problems:

He wants to launch an "Apollo project" to build a new alternative energy economy. His rationale for doing so includes some hard truths about the current economic mess: "The engine of economic growth for the past 20 years is not going to be there for the next 20. That was consumer spending. Basically, we turbocharged this economy based on cheap credit." But the days of easy credit are over, Obama said, "because there is too much deleveraging taking place, too much debt."

A new economic turbocharger is going to have to be found, and "there is no better potential driver that pervades all aspects of our economy than a new energy economy ... That's going to be my No. 1 priority when I get into office.

According to the Apollo Alliance, which Obama supports, a rigorous program channelling $500 billion over 10 years to alternative energy projects is needed.

Investors will making a killing in renewable energy in the companies that have been doing it from the beginning – In Canada; BioStreet will be one of them. And those companies ‐‐ the ones that were green before green was cool ‐‐ are the ones that you need to be investing in if you want safe returns for years to come.

Here's the situation. According to the International Energy Agency (IEA), the world's primary energy needs are projected to grow by 55% between 2005 and 2030. Chinese and Indian crude oil imports will almost quadruple by 2030, creating a supply crunch no later than 2015. Coal demand will rise by 73% between 2005 and 2030. Because of this unprecedented demand for energy, the IEA found that $20 trillion of investment in supply infrastructure is needed to meet projected global energy demand. And where will a big chunk of this money go? The same place it's been going for the past few years ‐ alternative energy. In fact, from 2006 to 2007 alone, new investment in alternative energy soared a full 60%... to $148.4 billion.

And what about the investment growth rate for exploration and development in oil and gas?

Nothing. Zilch. Not even a 1% increase. So, if the world is so desperate for more energy (especially oil... with Chinese and Indian imports expected to quadruple by 2030), why was so much poured into alternatives, and so little poured into oil and gas? Simple. Because the smart money always piles into a sure thing. And no matter how you slice it, the basic fundamentals of supply and demand favour the longterm success of alternative energy. That's why Big Oil, the big institutional investors, and all those hot shot venture capital firms are injecting hundreds of billions of dollars into the alternative energy sector.

I think it’s safe to say that Canada will follow the U.S. lead. We always eventually do. We are in a country without major economic problems. BioStreet is well positioned to meet the Canadian Governments mandates and take advantage of our stronghold in this very new and upcoming Canadian Industry.

On behalf of the board,

Darrell Michaels
President

Investor News - August 2008

Bill C-33 Passed by Senate

Great News! In June we reported that Bill C-33 passed through the House of Commons in May. On June 26, 2008 the Senate voted in favour of the Government of Canada's Biofuels Bill. The amendments to the Canadian Environmental Protection Act (Bill C-33) will give the Government authority to develop regulations for renewable fuels mandating a 5 per cent renewable content in gasoline by 2010 and 2 per cent renewable content in diesel fuel and heating oil by 2012. BC has also mandated a 5 per cent blend of biodiesel by 2010. More...

Agriculture Advisor Appointed

BioStreet is pleased to announce the appointment of Darcy Caners to the team as a member of the Advisory Board. Darcy played an integral role in the negotiation of supply agreements between the former Agricore United (now Viterra) and Husky Oil for both Minnesota and Lloydminster Ethanol plants. He successfully managed the risk for an annual 1.5 million metric tonne sales book, from setting the prices to the grower through their elevator network and selling to end-users and managing the basis and futures positions associated with this program. He will assist BioStreet with the development of a supply risk strategy as we begin to approach producers.

Engineering and Technology Update

In mid-July, Vice President Angela Reid travelled to Alberta to meet with Clifton and Associates, the company handling the environmental permits process and Vital Engineering, the integrated engineering and environmental firm that will be working to identify opportunities for dramatic reductions in energy consumption through heat recovery and renewable energy technology. She also met with the Mayor of Vegreville to discuss the annexation process.

Angela then travelled to Atlanta with Trimark Engineering to spend two days in meetings with DeSmet Ballestra, the potential technology provider, to review the fine details of the proposals they have submitted for providing the crushing, refining and biodiesel production equipment. Final criteria and equipment selection should be made by late summer and Trimark Engineering has been engaged to continue with Phase 3 of the project, the Design Base Memorandum.

Green Energy Investments: Growing, Growing

Based on US data, green energy investing has been, and will continue to be a runaway train scenario. Check out the total annual green investment data for the past few years:

• 2004, $33.4 billion
• 2005, $58.7 billion, 76% growth
• 2006, $92.6 billion, 58% growth
• 2007, $148.4 billion, 60% growth

In that time, total public market transactions have also skyrocketed. The following data includes IPOs, secondary offerings, and convertible bond issues:

• 2004, $800 million
• 2005, $5.6 billion
• 2006, $12.6 billion
• 2007, $27 billion

Take a look at just one more set of data. These are total green venture capital and private equity numbers from early stage through over the counter listings:

• 2004, $2.4 billion
• 2005, $6.4 billion
• 2006, $9.3 billion
• 2007, $13.5 billion

These numbers are impressive, showing not only the strong growth of the renewables industry, but also indicating—via the 2007 venture capital data— that the industry is far from saturated and that billions are still being wagered on the future success of young companies and new ideas.

The effects of the credit crisis began to rear their ugly heads early in 2008, resulting in few new IPOs and downward pressure on most stocks. This tightening of the markets spawned increased merger and acquisition activity, as it generally tends to do. Yet for all the recession talk and bear banter, overall investment in green technology during the first half of 2008 has actually been above the levels seen during the first half of 2007.

According to Global Trends in Sustainable Energy Investment 2008, although asset finance is down somewhat, venture capital and private equity investment, public market capital raising and stock prices are all healthy, indicating that the finance community still sees strong fundamentals underlying the sector and is increasingly looking to take part in its future growth. Investment between now and 2030 is expected to reach $450 billion a year by 2012, rising to more than $600 billion a year by 2020.

Timing for Going Public

BioStreet has four more milestones to reach prior to considering timing for going public:

1. Environment Canada Permit - Clifton and Associates in Calgary has submitted the draft application and we expect completion by late fall.
2. Alberta Environment Permit - Clifton has also submitted the draft application, and completion is expected by early winter.
3. Land Title on the property in Vegreville - a purchase agreement for the land is in place, but ownership is subject to the town annexing the property from the County, which should be finalized by the New Year.
4. Producer Investment - The Federal Government ecoABC program requires a minimum of 5% producer ownership to be eligible to receive approximately $13 million in grants. Since shares do not have to be issued for grants, there will be less dilution to the stock and a higher share value, so it is in the best interest of shareholders that we accomplish this key goal. We’re almost halfway there and a new offering is coming out shortly (now at $2.00 per share), which will be targeted for farmers. We are confident that our requirement will be met after this year’s harvest.

Once all four of these milestones have been accomplished, we will be in a position to begin construction. At this time a public offering will be much more attractive to future investors and will add so much more value to existing shareholders shares. We realize it’s a longer wait for some of our original shareholders, but the BioStreet team is working to ensure they returns will be worth the wait, that the best decisions are made, and we thank you for your patience.

Please note our new address in Kelowna: 200-346 Lawrence Avenue.
Feel free to stop in if you’re in the neighbourhood.

On behalf of the board,

Darrell Michaels
President

Investor News - June 2008

Bill C-33

On May 28th, Bill C-33 was passed by the House of Commons, implementing a renewable fuel standard that will mandate a 2 percent blend of biodiesel in all transportation and heating fuel. This will create a requirement for over 600 million litres of biodiesel, and some provinces are passing their own standards requiring higher blends. Currently only 97 million litres are commercially produced in Canada and BioStreet’s plans will supply 170 million litres.

Project Scope and Cost Estimate Development Complete

Trimark Engineering has completed the schematic design of the biodiesel facility and the opinion of probable cost, which has come in at approximately $134 million. Block Flow Diagrams, Process Flow Diagrams, Pipe and Instrumentation Diagrams and a process equipment list were prepared in the extensive 330 page report.

The completion of this document will allow for a comprehensive update of the business plan and financial projections, to be used for marketing to Venture Capital firms, strategic partners and other institutional investors. A special thank you to the Alberta Ministry of Energy for their $267,000 grant that has been used towards the completion of this report.

Public Open House and Input Opportunity in Vegreville

Clifton and Associates has nearly completed the environmental permit process, and a public open house will be hosted in Vegreville on June 4th and 5th at the Centennial Library. The week will also include meetings with IRAP, the Alberta Research Council and Alberta Agriculture to discuss the development of a project scope to test Canola and Camelina meal for conversion to BioOil, and the potential to use Camelina as a feedstock.

Once the environmental permit process is complete, BioStreet will be making applications for ecoABC and ecoEnergy for biofuels funding. In the meantime, additional funds will be sought from the provincial Biorefining Commercialization and Market Development Program and the Bioenergy Infrastructure Development Program.

BioStreet Canada Engages Trimark Engineering for Biodiesel Project

Another milestone has been reached for BioStreet Canada’s Vegreville, Alberta biodiesel project. The year 2008 promises to be a busy one for the team, which now includes Trimark Engineering, headquartered in Lethbridge.

“We’re pleased to be moving forward with some momentum now,” said Darrell Michaels, President of BioStreet. “Engaging Trimark Engineering and then selecting the technology providers is a huge leap forward from 2007.” Mr. Michaels spent several weeks in Alberta during the winter, raising investments from producers to ensure the project qualifies for the Federal ecoABC funding.

Vice President, Angela Reid, has recently returned from the National Biodiesel Conference and Expo in Orlando, Florida. “To keep ahead in the industry, we’re integrating long-term sustainability planning into our business model, which includes utilizing unique systems to handle our by-products, as well as selecting the most energy efficient technologies feasible. We will design the plant with maximum flexibility and adaptability in mind, which was a key point made at the conference.”

BioStreet announced the location of their first project in Vegreville on June 1st with Premier Ed Stelmach, and he congratulated the company on their choice of location. “Alberta’s rural economy is benefiting from the increased demand in biofuels, helping to diversify from one largely dependent on oil and gas,” said Stelmach.

Construction of the Vegreville project is slated to begin in 2008 and scheduled for completion in 2010. Once commissioned, the plant will produce 175 million litres of biodiesel, provide over 50 full-time employment opportunities and create a new market for 375 to 400 thousand tonnes of canola.

For more information contact:

Angela Reid, VP Public and Government Relations: (250) 215-7714
or areid@biostreetcanada.com
www.biostreetcanada.com

Premier Ed Stelmach Welcomes New Alberta Biodiesel Refinery

Location of a large-scale biodiesel crusher and refinery announced in Vegreville, Alberta.

Vegreville – BioStreet Canada has finally announced that they will be constructing their 175 million litre per year biodiesel crusher and refinery in Vegreville, Alberta; right in the backyard of Premier Ed Stelmach’s riding, and he congratulated the company on their choice of location. “Alberta’s rural economy is benefiting from the increased demand in biofuels, helping to diversify from one largely dependent on oil and gas.”

The Premier was joined by Vegreville’s Mayor, Richard Coleman, and Deputy Reeve of the County of Minburn, Albert Melnyk, to welcome BioStreet during an announcement reception held in the auditorium of the Vegreville Centennial Library on Friday June 1st.

“As Reeve of the County of Minburn and a long time resident farmer of the County, the BioStreet announcement is certainly great news,” said Orest Berezan, County Reeve in a statement supporting the project. “The biofuels development would certainly help the local economy as well as the environment with the production of a renewable, green fuel.”

Construction is slated to begin in late 2007 and scheduled for completion in late 2009. Once commissioned, the plant will provide over 50 full-time employment opportunities and create a new market for 375 to 400 thousand tonnes of canola per year.

The BioStreet team was represented by Darrell Michaels - President, Jim Thomson - CEO, Ron Gorst – COO and Angela Reid - VP of Public and Government Relations.

“Our team is excited to be a part of the rapidly emerging renewable energy economy in Canada, and we look forward to working with the Town, the County, the Province, the Federal Government and canola producers as suppliers and equity investors, to enhance the agriculture industry and make a significant contribution to national renewable fuel targets and Alberta’s Nine Point Bio-energy Plan,” said Angela Reid.

For more information contact:

Angela Reid, VP Public and Government Relations: (250) 215-7714
or areid@biostreetcanada.com
www.biostreetcanada.com

Kelowna Biodiesel Company First to Announce Federal Grant

As biofuels and alternative energy become the focus of Canadian politics, Kelowna-based BioStreet receives $300,000 in government funding.

Calgary - Plans to build a 175 million litre per year biodiesel crusher and refinery in northern Alberta just received a huge vote of confidence from the Federal and Provincial government.

The Biofuels Opportunities for Producers Initiative (BOPI) Program, funded by Agriculture and Agri-food Canada's ACAAF Program, and administered in Alberta by the Agriculture and Food Council, received 44 applications requesting $7.7 million for their first round of funding. Only $900,000 was available. In the final round of reviews the three best projects were selected.

BioStreet's "From Field to Refinery Business Planning" project, was born in recognition of the growing biofuels demand in Canada and around the world, combined with the incredible opportunities to develop closed-loop, cluster-oriented operations, from field to refinery in Alberta.

Darrell Michaels, Chair and CEO, recognizes the significance of this funding. "This announcement demonstrates to our shareholders and partners that two levels of government experts believe our strategy and plan to be one of the best in this emerging Canadian industry."

On the heels of recent announcements made by the Federal Government to fund alternative energy, it seems all political parties have jumped on the "green" bandwagon as recent polls show the environment and climate change as the most important issues to Canadians.

Secretary of the Board and Government Relations Consultant, Angela Reid, is excited about the broad spectrum of benefits this project will create. "This Canadian business model includes significant producer involvement and ownership and will set a new example and benchmark for innovative ways to help revitalize Canada's agricultural sector and stimulate local economies through investments in alternative energy," says Reid. "Increasing Canada's alternative energy capacity will further diversify the predominantly fossil-fuel based energy economy of Canada, and help to support provincial, national and international environmental goals for reducing greenhouse gas emissions and combating climate change."

BioStreet's mandate is to design, construct, and operate large-scale commercial oilseed crushers and biodiesel refineries with up to 175 million liters per year production capacity, in Alberta and other Western Canada locations, with a commitment to significant producer participation through equity investment, in addition to strategic relationships and collaborative efforts with major industry players.

Business Development Consultant, Jim Thomson, has been busy bringing these major industry partners to the table, and more announcements are expected soon.

Of particular importance to the success of a project of this size and scope, is a highly competent engineering team. BioStreet's Vice President of Engineering, Peter Rzazewski, has brought together a group of European companies and individuals, with decades of expertise in the planning, design, construction and operation of biodiesel facilities around the world.

In order to meet the Federal Government's commitment to "achieve five percent average renewable fuel in transport fuel by 2010," a domestic demand for 1.2 billion litres of biodiesel per year is anticipated, based on existing consumption of diesel. The largest challenge facing the sector is Canada's lack of capacity to respond to this emerging demand for biodiesel and the market opportunities it presents.

BioStreet will help to fill this void and increase the experience and expertise in the planning, design and construction of biodiesel crushing and refining facilities in Canada, strengthening our country's ability to continue to handle an increased demand for biodiesel.

For more information contact:

Angela Reid, Government Relations: (250) 215-7714
Darrell Michaels, CEO: (403) 680-2841
www.biostreetcanada.com