Universal Bioenergy Inc., (OTCMarkets:UBRG), a publicly traded independent diversified energy company, is pleased to announce that it has closed the transaction for the acquisition of a 40% stake in the Whitesburg Friday Branch Mine LLC, a producer and provider of thermal steam coal in eastern Kentucky in a deal valued at over $264 million over the next five years. Formal notification of the closed transaction is pending filing with the U.S. Securities and Exchange Commission on Form 8-K, which will include a copy of the definitive agreement.  

The Company will now rapidly expand into the coal energy market sector now that it has completed this acquisition. Thermal/Steam non-coking coal is used as a primary source of energy for coal fired powered plant electric generation. Universal and Whitesburg will mine, produce and market "Thermal/Steam" coal to sale to its electric utility customers for power generation The Whitesburg mining operations are the surface and high wall mining type and does not include any underground mining. Whitesburg owns the leases for the coal mineral rights, has the mining permits from the State of Kentucky and expects to start full mining production in March 2012. The deal is projected to generate over $264 million in estimated revenues for the Company over the next 5 years.

Domestic and global demand for coal continues to grow. According to the American Coal Foundation, 9 out of every 10 tons of coal mined in the United States today is used to generate electricity, and more than half of the electricity used in this country is coal generated electricity. The U.S. Energy Information Administration (EIA) says coal as a fuel source for electricity generation will increase 25% by 2035 in the United States. Overall, the EIA predicts that coal will remain the dominate fuel source for electricity generation, growing to about 11,000 terawatt hours from its current level of about 8,000.

Universal's President Vince M. Guest states, "This acquisition marks a major milestone for us, as it gives us a diverse energy product portfolio including natural gas, propane, oil and coal. We believe this acquisition will help position us to up-list to NASDAQ, and take advantage of our other acquisition targets in the energy industry. Under the terms of the agreement, Universal will market the coal, and the mine is projected to generate an estimated $264 million in gross revenues for Universal over the next 5 years. That's an average of $52.80 million in sales annually, in additional to our estimated $71.74 million in sales for 2011. The potential earnings to be generated from this acquisition is estimated at $5 to $8 million annually for Universal alone.  Although we cannot guarantee an actual valuation, according to industry valuation standards using average P/E ratios from Standard & Poor's, at a multiple of 15 times earnings, a valuation of $75 to $120 million dollars is an estimate of the potential additional market capitalization value of this acquisition alone to Universal."

About Universal Bioenergy Inc.

Founded in 2004, Universal Bioenergy Inc., is a publicly traded independent diversified energy company that produces and markets natural gas, petroleum, coal and propane. We market energy resources to the largest public utilities, electric power producers and local gas distribution companies in the U.S., that serve millions of commercial, industrial and residential customers. We are also engaged in the acquisition and development of existing or recently discovered oil and gas fields, leases and surface coal mines. For more information visit www.universalbioenergy.com

The Universal Bioenergy Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6784

Safe Harbor Statement - There are matters discussed in this media information that are forward looking statements within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. Such statements are only forecasts and actual events or results may differ materially from those discussed. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to Universal Bioenergy Inc.'s most recent annual report and accounts and other SEC filings. The company undertakes no obligation to update publicly, or revise, forward looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.

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