Heads of Agreement in Jamaica

    RNS Number : 8267X
  Infinity Bio-Energy Ltd
  30 June 2008
   

    Infinity Bio-Energy Ltd.
    ("Infinity" or the "Company")
    Heads of Agreement in Jamaica

    Infinity Bio-Energy, Ltd. ("Infinity" or the "Company") is pleased to announce that on June 27, 2008, it has signed a Heads of Agreement
with the Government of Jamaica.

    The Heads of Agreement will provide the Company with both privileged access to the domestic market for ethanol in Jamaica and a platform
for exporting anhydrous ethanol to the United States, utilizing the Caribbean Basin Initiative program.

    Infinity and the Government of Jamaica will form a new company ("NewCo"), which will hold the Government-owned assets of the Jamaican
Sugarcane Industry and also an existing dehydration facility that currently belongs to the Petroleum Corporation of Jamaica ("PCJ") with a
capacity of approximately 40 million gallons (151 million liters) per year. The 5 sugar plants to be transferred to NewCo crushed 1.4
million tons of sugarcane last year dedicated to sugar production which benefits from preferential export conditions to Europe. Infinity
intends to increase the plants' crushing to 2.5 million tons of sugarcane with all the additional crushing used in ethanol production for
exports.

    As part of the Heads of Agreement and as a means to stimulate ethanol production in Jamaica, the Government of Jamaica will establish a
domestic program for blending ethanol into gasoline, initiating at 10% blending and increasing to 25% in due course of its current
consumption of approximately 180 million gallons a year. The Heads of Agreement provides for an off-take agreement with the PCJ through
which Infinity will supply the domestic demand of ethanol in the country. 

    In addition to the production of sugar, ethanol and dehydration of Brazilian ethanol, NewCo will produce electricity for its own
consumption and approximately 30 MW for sale to the national energy grid of Jamaica under a 20 year Power Purchase Agreement. 

    The transaction is expected to close by September 30, 2008 and is subject to several conditions.

    For further information, please contact:

 Infinity Bio-Energy
 Sergio Thompson-Flores, CEO                 +55 11 3525-9922
 Rodrigo Aguiar, Investor Relations Officer  +55 11 3525-9922

 Collins Stewart Europe Limited
 Adrian Hadden / Adam Cowen                  +44 (0) 20 7523 8350


    ENDS


This information is provided by RNS
The company news service from the London Stock Exchange
 
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