Imperial Petroleum, Inc. (fka IPMN)

[JanYu]

Imperial Completes Funding for Oil Sands Proto-Type

EVANSVILLE, Ind., Oct 05, 2010 (BUSINESS WIRE) -- Imperial Petroleum, Inc. (OTCBB: IPMN) announced that it has completed the funding for its oil sands proto-type unit. The oil sands recovery process uses a non-thermal, mechanical and chemical closed-loop system to recover the bitumen or heavy oil from oil sands. Upon successful demonstration of the process technology using the proto-type unit, the Company will enter into a License Agreement with its international partner to develop the technology in certain territories. The License Agreement will include an initial licensing fee of $500,000; on-going royalties to the Company on new facilities and will provide a firm financing commitment of up to $6.6 million to the Company to build its initial facility in the United States using this technology.

Jeffrey T. Wilson, President of Imperial, said, "We believe that this process eliminates the environmental issues associated with the recovery of heavy oil from oil sands both in Canada and elsewhere for three reasons: (1.) there are no emissions with our process; (2.) we do not apply heat to the material so we are not driving off the lighter hydrocarbon ends into the atmosphere and (3.) the sand that exists the facility is hydrocarbon free." Mr. Wilson went on to say, "This funding agreement is the first step in completing the Term Sheet we signed with our international partner a few weeks ago. Construction and demonstration of the proto-type unit will take about 60 days and once completed we expect to quickly enter into the Licensing Agreement. We are constructing a 10 ton per hour proto-type facility in Houston, Texas to demonstrate the technology on Canadian and United States oil sands on a commercial level."

Imperial is an energy company headquartered in Evansville, Indiana.

This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes that the expectations in such statements are reasonable, there can be no assurance that such expectations will prove to be correct.

SOURCE: Imperial Petroleum, Inc.

CONTACT:

Imperial Petroleum, Inc. Jeffrey T. Wilson, 812-867-1433 email: [e-mail] website: https://imperialpetroleuminc.com

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