Kyoto Fuels Corp.

Press Conference

November 21, 2008

For Release – 9:00 a.m.

FIRST MAJOR STUDY OF BIODIESEL EFFECTIVENESS IN

THE CANADIAN CLIMATE

LAUNCHED BY KYOTO FUELS CORPORATION

Kyoto Fuels Corporation and JK Trucking (a division of J. Koliaska Enterprises Ltd.), in cooperation with Olds College and the Government of Alberta, today announced the launch of the Biodiesel Integration Study Pilot (BISP). The BISP is designed for in-depth study into the operability and functionality of biodiesel in the Canadian climate. This study will monitor the use of biodiesel blends in the JK Trucking fleet for a one-year period.

“Our commitment to the biofuel industry in Alberta is providing economic results for all Albertans,” said Energy Minister Mel Knight. “Answering questions about the safety and efficiency of biodiesel will lead to innovative products that can be used across the province. This project is an example of the work being done to create a sustainable industry.”

Kelsey Prenevost, President and CEO of Kyoto Fuels Corp., says the company is excited about the opportunity to demonstrate the functionality of biodiesel in every day life in Canada. “The integration of biofuels into the established petroleum distribution chain will be critical to their success in the marketplace. These new, environmentally sustainable fuels will not have a meaningful impact without being able to eventually reach every Canadian who wishes access to them,” says Prenevost.

Since the initiation of the project in June, an enormous amount of data has been collected from two sources: the GPS tracking systems and the ECM computers in each trucking unit. The information being collected is the first of its kind and will provide insight into the operability of biodiesel blends in the dramatically varied Canadian climate.

Already, more than 500,000 litres of blended product, consisting of 90% petroleum diesel and 10% biodiesel, has been used. To date, this ‘B10’ blend has not caused any mechanical difficulties or changes in vehicle performance. Over the course of the study, drivers will also be surveyed for their feedback.

John Koliaska, President and CEO of JK Trucking and VP Business Development of Kyoto Fuels Corporation, says, “Proving the effectiveness of a higher blend of biodiesel in a large fleet could lead to reduced reliance on petroleum diesel and reduced environmental impact. We are proud to be the first fleet in Canada to be dedicated to this proactive Environmental initiative and the positive impact of its use.”

Prenevost adds, “Although the success and benefits of biodiesel use have been well established elsewhere, the demonstration of its use in the Canadian climate will be a key element in the wide-scale adoption of biodiesel in Canada.”

The Olds College School of Innovation (OCSI) will be acting as third-party invigilators for the project, ensuring its research effectiveness. OCSI will provide consulting services related to data collection, verification and analysis of findings.

"Involvement in a full scale demonstration trial such as this one is a valuable complement to the smaller pilot trials we have initiated," says OCSI Bioenergy Research Associate Tanya McDonald. "I am very impressed with the range of data being collected and the excellent work that has been done to eliminate outside sources of variability that are often inherent in these demonstration projects."

In addition, partnerships with AGAT Laboratories Ltd., EFG Solutions, Peoplenet Canada, and Cummins Western Canada have been established through the development and implementation of the project.

AGAT Laboratories Ltd., Canada’s largest used lubricants, fuels, coolants and failure analyses laboratory, has agreed to provide unbiased, third party analytical services. AGAT’s industrial and fleet equipment specialists are expert at providing industry with “Best Practice” recommendations and environmentally recognized improvements in proactive maintenance, all aimed at improving the global environment.

EFG Solutions Inc. is providing the information technology for the project. “This is very exciting for us,” says Stephen Graham, CIO. “I am moved by the possibilities that biodiesel offers, and this project allows us to put our information technology talents to use in a real and important alternative fuel project.” EFG Solutions Inc. was founded in 1993 in Lethbridge, Alberta and has created information management solutions for manufacturing, commodities, education, unions, and government.

PeopleNet is providing a portion of the onboard intelligence that collects, saves and reports the project data from the JK Trucking fleet in real time on roads in Canada and the U.S., under all climate conditions. "PeopleNet Canada is proud to be part of this effort with our customer, JK Trucking," said Jamie Williams, president, PeopleNet Canada. "We regularly work with customer fleets toward green operations and fuel conservation. This project reflects that company-wide PeopleNet effort." PeopleNet is the leading provider of intelligent onboard communications and fleet management solutions in North America.

The JK Trucking fleet is comprised of 48 Cummins engines. Cummins Western Canada has provided the hardware required to download the ECM data. Cummins Western Canada fully supports the use of environmentally beneficial alternative fuels. “We applaud the work of Kyoto Fuels Corp. and JK Trucking to verify the quality of biodiesel and the safe use under most operating condition in Canada. The valuable date they have collected will help insure a smooth entry of biodiesel blends into the Canadian market” says Bill Waugh, Branch Manager of the Lethbridge Cummins dealership.

Kyoto Fuels Corp. is in the final stages of construction of a 66 million litre per year biodiesel bio-refinery located in the County of Lethbridge.

The JK Trucking fleet utilizes 50 Class 8 highway tractors traveling throughout Western Canada and the Western United States.

Contact:	Ryan Deacon-Rogers CA
	BISP Project Manager
	Kyoto Fuels Corp.
	Phone: (403) 795-4263
	Fax: (403) 317-7768
	info@kyotofuels.com

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For More Information on Kyoto Fuels Corporation or biodiesel, please visit: www.kyotofuels.com or contact the company at (403) 795-4263 (email info@kyotofuels.com).