BFC Biofuels

RNS Number:8481T
Biofuels Corporation PLC
28 March 2007



Biofuels Corporation plc
(the "Company")


Financing update

Further to the announcement of 13 March 2007, the Company has now secured from
its bankers additional funding.   As previously notified, and against the
backcloth of a weaker market, additional remediation costs and a lack of clarity
on the timing and extent of any market recovery, the Company estimates a total
funding requirement, of between #16 million and #25 million through to 31
December 2007.

The Company is pleased to re-affirm that its on-demand banking facilities with
Barclays, who remain supportive of the Company, have been rolled over to 30 June
2007. Barclays have agreed to provide additional facilities of:

*        #3.1 million for working capital and fixed capital purposes including
         plant remediation; and

*        #0.9 million to cover bank fees payable on 30 June 2007; in addition to

*        The deferral of payment until 30 June 2007 of the future interest
         payments due up to that date, amounting to around # 2.0 million.

However, additional funds for working capital and fixed capital purposes are
likely to be required by the company from 31 May 2007 onwards

The Board continues to discuss its short term cash requirements with Barclays
and to thoroughly investigate a range of options to restructure the current debt
in order to secure the Company's longer term future.  Amongst these options is
the possibility of a debt for equity swap. Given the company's current debt
levels of circa #95m (excluding the drawdown of the above new facilities) and
its market capitalisation, which is circa #11 million, should any debt for
equity restructuring occur shareholders in the Company would very likely see
their shareholding significantly diluted.



                                                                   28 March 2007

ENQUIRIES:


College Hill                                                       020 7457 2020
Mark Garraway
Gareth David




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