Colusa Biomass Energy Prepares for Initial Rice Straw Harvest

September 13, 2006

Colusa Biomass Energy Corporation (PINKSHEETS: CLME) today announced its plans to begin rice straw harvesting operations in the coming twelve-week rice harvest period in Colusa County, California. Field Operations Manager Rick Nannen said, “With our specialized equipment we are confident of meeting our target of harvesting 4,000 acres of rice straw in the coming weeks.” The gathering operations will bring rice straw to CLME’s satellite storage facility near Grimes in Colusa County. Rice straw stored at the satellite facility will need no further processing before being delivered to the bio-refinery in the Colusa Industrial Park complex for conversion to ethanol. CLME’s bio-refinery is planned to be online 4th quarter 2007.

CLME’s specialized equipment is designed to cut and process the straw into proper sizes in one complete mechanical pass. Specialized live-floor trailers are used to minimize offloading time. This combination of quick turnaround and one time handling of the rice straw will substantially lower the cost of the gathered biomass.

Tom Bowers, CEO, said, “We consider this entire harvest effort an exercise that will hone our skills and develop field management practices that will enhance our ability to keep the biomass gathering cost at a minimum. This will be especially important next year as the 2007 harvest will be an orchestrated effort with as many as 8 times the number of equipment and operators. This is a commercial harvest exercise that has never been done before across this many acres to gather this much rice straw.”

About Colusa Biomass Energy Corporation

Colusa Biomass Energy Corporation (PINKSHEETS: CLME) is 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.


Contact Information:

Tom Bowers
CEO
Colusa Biomass Energy Corporation
Email: tfbowers@aol.com

Jim Holmes
CFO
CLME
Email: jholmes777@aol.com

SOURCE:  Colusa Biomass Energy Corporation

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