Pure Biofuels Prepares to Launch Peru's Largest Integrated
Bulk Liquid Terminaling Operation
Terminaling services to diversify revenue stream, provide
significant logistical cost savings
LOS ANGELES and LIMA, PERU (July 1, 2008) – Pure Biofuels Corp. (OTCBB: PBOF), a Peruvian-based biodiesel company, today announced it has completed construction of an underwater pipe that will become part of Peru's largest integrated terminaling operation.
Besides the expected cost advantages for transporting and storing raw materials, as well as blending and exporting finished product from its own biodiesel facilities, the Company will make its tank farm available to third parties on a per barrel or per ton per month basis, providing the opportunity for Pure Biofuels to diversify its revenue stream with a high margin revenue source. The Company is going to market its spare storage space to third parties such as refiners, distributors, marketers and industrial/commercial end-users of petroleum chemical products.
Pure Biofuels’ Chairman Chris Tewell commented, “Pure Biofuels now owns and will soon operate Peru’s largest integrated terminaling operation. Our tank farms greatly complement our primary production facility, which includes a biodiesel production plant and a blending facility. We plan to commence our terminaling operations in the third quarter in conjunction with the ramp up of our flagship Callao Port refinery, subject to pending test results of the facility.”
The Callao Port facility encompasses approximately 4.7 hectares (almost 12 acres) of land close to the Port of Callao, the largest port on Pacific Coast of South America. The infrastructure includes a mooring facility capable of receiving Panamax vessels of up to 60,000MT of bulk liquid cargo; and the two longest underwater pipes in Peru, running 4.1 kilometers both with a 14” diameter. The pipelines run to Pure’s tank farm, for reception and delivery of raw materials, as well as for accessing other fuels for blending, and for terminaling services. The site also sits near the La Pampilla Refinery, Peru’s largest refinery.
About Pure Biofuels Corporation
Pure Biofuels is committed to becoming a leader in Latin America's rapidly emerging
biofuels industry. Pure Biofuels' flagship project, the Callao Port biodiesel refinery near
Lima, Peru, is scheduled to complete construction in the second quarter of 2008 and to
commence full production capabilities by the third quarter of 2008. The Company believes
Peru's economic growth and expansion, illustrated by recent exponential growth in foreign
direct investment, and GDP growth over the last five years, adds to Peru's promise as an
attractive geography for alternative fuel production and development. In addition, rating
agency DBRS in 2008 assigned investment-grade credit ratings to Peru's long-term foreign
and local currency debt.
Biodiesel is a clean and renewable energy source derived from vegetable oil that can be used in unmodified diesel engines. Biodiesel improves overall engine performance, is 100% compatible with existing diesel vehicles and infrastructure, and has proven reliable in over 50 million miles of road testing. Biodiesel significantly reduces harmful exhaust emissions, which contribute to global warming; is non-toxic at any level; and is the first and only fuel to have passed the Clean Air Act. The United Nations expects biofuels to account for a full 25% of world energy needs by 2025.
For more information about Pure Biofuels, please visit: www.purebiofuels.com.
Notice Regarding Forward-Looking Statements
This news release contains “forward-looking statements,” as that term is defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Since the forward-looking statements relate to future developments, results or events, these statements are highly speculative and involve risks, uncertainties and assumptions that are difficult to assess. You should not construe any of these statements as a definitive or invariable expression of what will actually occur or result. Such forward-looking statements include, among others, the expectation and/or claim, as applicable, regarding the construction of the Callao Port refinery. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, (i) Pure Biofuels’ ability to raise the necessary capital to complete construction of the biodiesel refinery on time and within budget; (ii) Pure Biofuels’ ability to obtain any necessary government, regulatory or other permits or approvals; (iii) Pure Biofuels’ ability to keep pace with technological advances and correctly identify and invest in the technologies that become commercially accepted; (iv) Pure Biofuels’ ability to operate the biodiesel refinery, if and when construction is completed, efficiently, without work stoppages, labor disputes, equipment/mechanical break-downs, political, economic and social unrest and in compliance with new governmental regulations; (v) Pure Biofuels’ ability to comply with environmental, health and safety laws; and (vi) Pure Biofuels’ ability to negotiate binding agreements for the sale of biodiesel, if and when production commences. These forward-looking statements are made as of the date of this news release and the company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the company believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations, or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the company's periodic reports filed from time to time with the Securities and Exchange Commission and available at www.sec.gov.
