Colusa Biomass Energy Selects Site for Its Ten Million Gallon per Year Ethanol Bio-Refinery

August 21, 2006

Colusa Biomass Energy Corporation (PINKSHEETS: CLME) today announced it has selected a 15-acre site for its bio-refinery which is expected to produce 10 million gallons per year of ethanol.

Tom Bowers, CEO of Colusa Biomass Energy, stated that “Arrangements and terms have been agreed for the construction of the Company’s bio-refinery. The bio-refinery will be located on a 15-acre site within the Colusa Industrial Park, Colusa, California. By locating in the Colusa Industrial Park’s 750 acre facility, CLME has access to the park wastewater handling system, negating the lengthy application of a wastewater permit. In addition, the CIP facility has complete freshwater, electrical and natural gas available for the bio-refinery operations. These resources are all essential to the ethanol production process.” 

The CLME bio-refinery is located in a prime rice producing area of the Sacramento Valley where rice producers plant approximately 600,000 acres of rice annually. The primary feedstock for the CLME bio-refinery is rice straw, which is a post harvest residue with no commercial value to the rice farmer. Of the approximately 1.3 million tons of waste rice straw residue produced annually in the Sacramento Valley, CLME will utilize approximately 120,000 tons as its feedstock in the production of the 10 million gallons of ethanol.

About Colusa Biomass Energy Corporation

Colusa Biomass Energy Corporation (PINKSHEETS: CLME) in planning to build a bio-refinery which is engineered to convert waste rice straw residue into ethanol. The plant is based on CLME patented and proprietary technologies that converts waste biomass into ethanol for use in transportation fuels. It is important to note that the CLME technology takes nothing from the food stream but only consumes waste biomass such as straws, wood chips, forest slash and orchards trimmings.

Additional information can be obtained at the website: www.colusabiomass.com.

Safe Harbor:

This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical fact may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from the projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approval for anticipated actions.

SOURCE:  Colusa Biomass Energy Corporation

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