Northern Ethanol forges ahead in Niagara Falls, NY

Northern Ethanol, LLC, a wholly owned subsidiary of Northern Ethanol, Inc., has announced that it has entered into an agreement to acquire a 70 acre site from Praxair, Inc in Niagara Falls on which it will locate its Niagara Falls, NY ethanol plant. The property is well served by CSX Rail, St.Lawrence Seaway dockage, adjacent interstate highway and abundant low cost water and other services.

In May, the Niagara Falls Ethanol project was approved for 9,000 kilowatts of low-cost hydro-electric power from the New York Power Authority, with a saving of approximately $35million over the life of the contract.

The Company is a public registrant under the Securities Exchange Act of 1934, as amended. Our objective is to become a low cost leader in the production of ethanol and its co-products in industrial zoned areas. Our initial goal is to construct three ethanol production facilities in Sarnia, Barrie, Ontario and Niagara Falls, New York each producing 400 million litres per annum. We believe that our proximity to the Central Canadian and North Eastern US markets will provide us with significant competitive advantages over other ethanol producers who must incur the costs of delivering ethanol from significant distances.