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KYOTO FUELS CORPORATION ANNOUNCES BIODIESEL PLANT CONSTRUCTION IN ALBERTA

June 6, 2007

LETHBRIDGE -

Kyoto Fuels Corporation is proud to announce the construction a 33 million litre per year (9 million gallon) biodiesel biorefinery to be located in the County of Lethbridge, Alberta, Canada. Able to accommodate a variety of starting materials including animal fat, waste greases and vegetable oils, the plant will supply ASTM quality biodiesel and biodiesel blends to Western Canada and the Northwest United States. Construction is slated to begin in the summer of 2007 and the plant will be producing fuel before the end of the year.

“The timing couldn’t be better,” says Kelsey Prenevost, President & CEO of Kyoto Fuels. “With fuel prices on the rise and increasing awareness of biofuel advantages, biodiesel is becoming a mainstream component of the energy marketplace.”

Mr. Prenevost is also excited about the Alberta government’s position on the emerging agriculturally-based fuel. “The support provided by the provincial government has been fantastic. The provincial government’s foresight will allow Kyoto Fuels to expand rapidly to accommodate the increased demand for biodiesel expected over the next few years.”

Biodiesel is a renewable fuel with strong environmental benefits that will improve engine life in diesel vehicles. It is typically mixed with petroleum diesel at concentrations of 5% (B5) or 20% (B20) and is supported by all diesel engine manufacturers including Cummins, Mercedes, GM, Ford and Caterpillar.

Several municipalities in Alberta have already implemented biodiesel in their fleets including Calgary, and are demonstrating excellent results. “Big private-sector fleets are coming on board as well,” stated John Koliaska, Vice President of Kyoto Fuels. “The American Trucking Association announced their support of a 5% inclusion of biodiesel as part of a national diesel fuel standard in the United States and the Canadian government is calling for a 5% inclusion across this country. If realized, biodiesel production levels requirements would reach billions of litres annually.”

As President & CEO of JK Trucking, a thriving transportation company based out of Lethbridge, Alberta, Mr. Koliaska also plans to reap the benefits of biodiesel in his own fleet of 48 Class 8 highway tractors. “It’s more than just a chance to be involved in something progressive. It’s a chance to do something for all the right reasons.”

Cheryl Dick, CEO of Economic Development Lethbridge, says, “The establishment of a quality biodiesel processing operation in this region is an important step in realizing the expansion and diversification of our alternative energy industry. Congratulations to Kyoto on their project.” Kyoto Fuels Corporation was formed in 2003 by Kelsey Prenevost, President & CEO, Jeff Arsenych, Chairman and John Koliaska, Vice President. “We envision the initial biodiesel plant as a foundation for a much larger operation with production levels in the hundreds of millions of litres in a relatively short timeframe,” said Jeff Arsenych, Chairman of Kyoto Fuels. “The raw material availability and supportive policies of the provincial government makes Alberta an attractive center for biodiesel production.”

For More Information on Kyoto Fuels Corporation or about biodiesel, please visit our website: www.kyotofuels.com or contact us at (403) 795- 7070 (email info@kyotofuels.com).

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