Plastic2Oil Inc (PTOI)

[capital gain]

For the three and six month period ending June 30, 2011, P2O gross margin performance was approximately 33% (2010: N/A). The Company is moving manufacturing equipment and fabrication staff at the Niagara Falls, NY Plastic2Oil facility to a nearby machine shop so that Plastic2Oil processors can operate at the same time fabrication and assembly is occurring. In addition, the processor has been used to test feedstock from large free sources of waste plastic to pass cradle to grave audits, and fuel testing for client-defined conditions for anticipated agreements and fuel supply contracts. The Company is also seeking approval to dye its own fuel to eliminate the need to blend or have 3rd parties perform this service. On this basis, we expect a significant improvement in future gross margin performance.

GLTA.

A.H