Algae International Group Signs Agreement with Gulf Hydrocarbon for future Algae Oil

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New contract could provide long term cash flow.

Algae International Group Inc. (OTCBB:ALGA) and Gulf Hydrocarbon, Inc. (“GULF”) have signed an agreement for GULF to exclusively represent ALGA in sales and distribution of ALGA’s proprietary and non-proprietary algal oils and products created with the algal oils. The exclusive representation agreement takes effect immediately and is a precursor to ALGA’s commercial production of algal oils from its pilot facility located in Tulare, California.

GULF will distribute and sell ALGA’s algal oils for further processing into fuels and all ALGA’s products made with the algal oils as well as ancillary products of gaseous fuels and electric power.

ALGA advises that it will start the relationship with GULF by shipping samples of proprietary and non-proprietary algal oils for testing as feedstocks for biodiesel. Jess Hewitt, Chairman of Gulf Hydrocarbon, said, “Algae oils were approved by the EPA for use as a biodiesel feedstock in 2010 but we have yet to see the feedstock available. By shipping samples to the biodiesel producers, we can begin the process of registering the numerous production plants with the EPA.”

As a part of the agreement, GULF will offer standard biodiesel reference fuels made using ALGA’s output from its pilot facility. According to Jess Hewitt, “In order to satisfy the OEM’s requirements for engine and material compatibility we must be able to supply a standard reference fuel before the engine manufacturers can certify use of the algal-based biodiesel in vehicle and non-road engines. Gulf Hydrocarbon will be responsible for quality control and packaging of these fuels for distribution to fuel laboratories and OEM testing facilities.”

In addition to the representation of ALGA’s oil and related products, GULF will also represent ALGA for the sale and distribution of excess biogas and the other products created with the excess biogas. These products will meet the latest proposed pathways for landfill and biogas for the Renewable Fuel Standard. GULF will also market any renewable information numbers (RINS) generated by ALGA. The RINS have a current value of $9.00/Mmbtu which will contribute greatly to the revenue stream from ALGA’s operations.

ALGA plans to be involved in the development of the propagation of specific algae species, for the extraction of oils and other valuable lipids and products, for a variety of industries ranging from bio-diesel and jet fuel, fuel additives, lubricants, pharmaceuticals, nutritional products and even cosmetics.

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About Algae International Group Inc:
Algae International Group Inc. (OTCBB: ALGA) is a public company in the development stage of renewable energy that is seeking to develop Biofuel from Algae utilizing a trademark process of "InSym" that combines; methane, CO2, fuel cells, nitrates, phosphates, sunlight and a specialized press to remove biomass and create HRD and HRJ fuel. For more info visit: http://www.algaeplanet.com

About Gulf Hydrocarbon, Inc.
Established in 1997, Gulf Hydrocarbon, Inc. is the premier provider of biodiesel to the petroleum industry. Offering competitively-priced biodiesel for large end-users and petroleum companies, Gulf Hydrocarbon also offers marketing strategies to producers that wish to contract for high-volume off-take agreements and risk management of biodiesel or biodiesel feed stocks. Specialized services include biodiesel production, blending, plant operation, tolling, plant development and financing. Gulf Hydrocarbon is also exclusive distributor of Gulf Racing Fuels in the United States. For more information visit http://www.gulfhydrocarbon.com

Safe Harbor Statement - This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward- looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual or future results may differ materially from those anticipated depending on a variety of factors, including continued maintenance of favorable license arrangements, success of market research identifying new product opportunities, successful introduction of new products, continued product innovation, sales and earnings growth, ability to attract and retain key personnel, and general economic conditions affecting consumer spending. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. ALGA does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.

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