Solix Biofuels Signs Agreement with Los
Alamos National Laboratory to Develop Algal Oil Extraction Process

FORT COLLINS, CO—September 9, 2009

Solix Biofuels, Inc.
(“Solix”), an alternative energy technology company for the large-scale
commercialization of microalgae-based fuels and co-products, has signed a Cooperative
Research and Development Agreement (CRADA) with the Los Alamos National
Laboratory (“LANL”) which grants Solix access to use and expand upon LANL’s
technology; specifically its patented acoustic technology that is beneficial to
Solix’s algal oil extraction process.

LANL’s acoustic technology utilizes sound waves to concentrate
the harvested algae mixture and to extract the oil from algae cells. Combining
these processes greatly reduces the energy required to extract algal oil and
eliminates the need for chemical solvents.

Bryan Willson, Chief Technology Officer of Solix commented,
“The agreement with LANL will allow Solix to quickly move forward with
extracting oil from algae crops harvested at our Coyote Gulch Production
Facility.” He continued, “We will be able to apply and expand upon LANL’s
valuable research in our effort to develop energy efficient extraction
processes of algal oil which is the next key step in bringing to market a
commercially viable alternative to petroleum based fuels.”

About Los Alamos National Laboratory (www.lanl.gov)

Los Alamos National Laboratory, a multidisciplinary research
institution engaged in strategic science on behalf of national security, is
operated by Los Alamos National Security, LLC, a team composed of Bechtel
National, the University
of California, The
Babcock & Wilcox Company, and the Washington Division of URS for the
Department of Energy’s National Nuclear Security Administration.

Los Alamos enhances national security by ensuring the safety
and reliability of the U.S.
nuclear stockpile, developing technologies to reduce threats from weapons of
mass destruction, and solving problems related to energy, environment,
infrastructure, health, and global security concerns.

About Solix Biofuels

Solix Biofuels, Inc., based in Fort Collins, Colo.,
is an alternative energy production technology company with emphasis on
supplying scalable photo-bioreactors that will enable the global production of
biofuels using microalgae as a feedstock. Solix is an
intellectual descendant of the U.S. Department of Energy’s Aquatic Species
Program, which started in 1978 to explore ways to produce biodiesel from algae.
In early 2006 Solix was founded with
the support of Colorado
State University
with a goal of creating a commercially viable biofuel that will help solve
climate change and petroleum scarcity without competing with global food supply.
Solix began operations at its Coyote Gulch Demonstration Facility,
located on the Southern Ute Indian Reservation, on July 16, 2009. For more information, visitwww.solixbiofuels.com.

Solix Contact:

Joanna K. Money

Vice President, Business Development

Office: (970) 692 5611

LANL Contact:

James E. Rickman
jamesr@lanl.gov
(505) 665-9203