Greenshift Corporation (GERS)

[Serenity]

QUOTE:

Biofuel Production & Sales.

"We commenced commissioning of our Medina, New York corn oil extraction facility and a scheduled upgrade of our Oshkosh, Wisconsin corn oil extraction facility during the first quarter. We are scheduled to commission several more corn oil extraction facilities over the balance of this year. Ordinarily, these new facilities would be expected to significantly increase revenue during the balance of 2008.

However, in May 2008, we completed the acquisition of Biofuels Industries Group, LLC ("BIG"), which company owns a biodiesel facility that is based on our biodiesel technologies.

The BIG facility has been designed to efficiently refine our extracted corn oil into biodiesel. Given our current and expected production of corn oil, this acquisition will result in additional increases in sales associated with our corn oil extraction efforts. Prior to the BIG acquisition, we sold corn oil for biodiesel production at prices that were discounted to diesel spot prices. By internalizing biodiesel
production capacity, we can now refine and sell corn oil derived biodiesel (instead of extracted corn oil alone) at more than $4.50 per gallon at current market prices - more than two times the sales price of extracted corn oil realized during the first quarter.

Furthermore, BIG's current annualized biodiesel production capacity is greater than our current corn oil extraction capacity. This allows us to opportunistically purchase and refine waste fats, oils and greases into ASTM standard biodiesel. We intend to expand BIG's annualized production capability to at least 20 million gallons per year by the
fourth quarter 2008. This expansion will allow us refine increased volumes of these waste fats, oils and greases.

These activities are all expected to result in significantly increased revenue during the second quarter and the balance of 2008 from this segment. At current market prices, a 10 million gallon per year production facility can be expected to generate about $45 million in annualized biodiesel sales."