PetroSun Issues Algae-to-Biofuels Product Update

PetroSun, Incorporated (PINKSHEETS: PSUD) announced today the following algae-to-biofuels update.

PetroSun BioFuels, a wholly owned subsidiary, has been actively pursuing feedstock supply agreements within the domestic biodiesel refining industry to market the algal oil from its planned algae farms and algal oil extraction plants. The Company has projected a minimum annual algal oil production level of 180,000,000 gallons from the planned facilities in Alabama, Louisiana and Arizona after their completion during 2008. The Company will market the algal oil based on the posted price of crude oil. At a crude oil price of $80 per barrel, the algal oil would wholesale for $1.90 per gallon or twenty-five cents per pound. This example would generate gross annual revenues of $342 million on the projected production levels from the initial operating facilities.

The Company will also be capable of producing considerable tonnage per acre of algae biomass, post algal oil extraction, that could be marketed as livestock feed or processed into ethanol. PetroSun BioFuels estimates that the annual sales associated from the biomass derived products could double the annual income of its initial algae-to-biofuels operations.

About PetroSun

PetroSun's operations include oil and gas exploration, development and production, algae-to-algal oil alternative fuels production and oilfield services. The oil and gas division is focused on the exploration of the Canning Basin of Western Australia and the Holbrook Basin of Arizona. The Company will continue the development of oil and gas reserves in Louisiana. The alternative fuels division is in the pre-commercial stage of the algae-to-biofuels production technology. The Company plans to establish algae farms and algal oil extraction plants in Alabama, Arizona, Louisiana, Mexico, Brazil and Australia during 2007/2008. The algal oil product will be marketed as feedstock to existing biodiesel refiners. The oilfield services division is in the process of upgrading our capabilities to support the exploration, development and production operations. PetroSun is headquartered in Scottsdale, 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.