PET Peat Resources Ltd. (delisted)

Peat Resources Limited (TSX VENTURE: PET) and BioEnergy Inc. are pleased to advise that they have reached agreement through a Letter of Intent to collaborate on technological research and development. This work is intended to lead towards the establishment of a Joint Venture to develop advanced biomass processing technologies and products derived from peat.

Peat Resources Limited is active in Newfoundland and Ontario and holds rights to large peatland properties in both provinces. The company has designed an environmentally acceptable harvesting and processing system to supply peat fuel to utilities and other industrial facilities for heat and power generation, and has established a small-scale peat fuel processing facility in Stephenville (Newfoundland).

Based in Nova Scotia, BioEnergy Inc. is developing new technologies for biomass densification and torrefaction processes for the manufacture of specialized biomass products, derived from peat and other materials, for energy generation, water purification, gas purification and other applications.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: Peat Resources Limited Peter Telford President and CEO 416 862-7885 416 862-7889 (FAX) peatfuel@peatresources.com www.peatresources.com BioEnergy Inc. Barry MacLean Vice President 902 564-9229 902 564-8474 (FAX) bioenergyinc@seaside.ns.ca www.bioenergy.ca