PetroSun BioFuels Announces Transaction With Icon Drilling

PetroSun BioFuels Announces Transaction With Icon Drilling

PetroSun, Incorporated is pleased to announce that its wholly owned subsidiary, PetroSun BioFuels Australasia, has entered into a Letter of Intent with Icon Drilling of Brisbane, Australia. The purpose of the transaction is to create a publicly traded alternative fuel company in Australia. Icon Drilling is a wholly owned subsidiary of Icon Energy that is traded on the Australian Stock Exchange (ASX) under the symbol ICN. The parties have agreed to amend the name of Icon Drilling to PetroSun BioFuels.

PetroSun, Incorporated will be issued fifty-five percent of PetroSun BioFuels common shares, with Icon Energy retaining a twenty percent interest. A capital raise will be conducted through an offering that will include up to twenty-five percent of the common shares of the new entity.

PetroSun BioFuels Australasia was issued the exclusive license agreement for the Australasian market by PetroSun. The rights granted under this agreement included the technology to cultivate algae on a commercial scale and refine the extracted algal oil into biodiesel. The Company will also be producing high protein animal feed from the algal biomass, ethanol and potential excess electricity as additional revenue streams from plant operations. The production process will also have a beneficial affect to the environment as algae consume carbon dioxide in the presence of sunlight. The source of the carbon dioxide can come from power plant emissions that would create carbon credits.

Independent studies have demonstrated that algae are capable of producing oil yields in excess of 55,000 kilograms per hectare annually. The annual oil yield per hectare from conventional crops such as palm oil (5,000), peanuts (890), rapeseed and sunflower (675), soybean (450) and corn oil and cottonseed (225) are far less than algae. The worldwide cost of diesel has increased dramatically during the past few years as a result of higher crude oil prices and refining cost increases. Biodiesel produced from algae offers an alternative that is not subject to commodity risks as is crude oil, corn and soybeans and is capable of supplying a sustainable feedstock.

About PetroSun

PetroSun’s current oil and gas operations are concentrated in the Ark-La-Tex region with plans to expand into New Mexico, Arizona and Australia in 2007. Algae BioFuels, a wholly owned subsidiary of PetroSun, is an emerging producer of biodiesel derived from the cultivation of algae. The Company’s cutting edge technologies, combined with a proven ability to apply them effectively and safely within a disciplined framework, create long term value for PetroSun shareholders and partners. PetroSun is headquartered in Phoenix, Arizona with field offices in Shreveport, Louisiana and Opelika, Alabama. For more information about PetroSun visit the company’s website at http://www.petrosuninc.com.

Except historical matter contained herein, matters discussed in this news release are forward-looking statements and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risks and uncertainties, which may affect the Company’s business and prospects and cause actual results to differ materially from these forward-looking statements.

Contact: PetroSun, Inc. Investor Relations Email Contact

(602)-487-6486

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