Novo Energies Signs Long-Term Contract with CTR

Novo Energies Corp. has executed a ten-year supply contract to recycle tire feed stock with Colorado Tire Recycling LLC, Hudson, Co. Novo believes that this supply contract is a major step forward in developing a green energy technology that decreases pollutants and waste while conserving energy and natural resources.

Colorado Tire Recycling has agreed to supply tire derived fuel chips to Novo for ten years, starting January 1, 2010. TDF chips will be used to convert tires into fuel and fuel additives. CTR will provide a minimum of 6,000 tons of TDF for the first year of the contract and a minimum of 12,000 tons per year thereafter, with a further option to increase supply.

Novo plans to construct its first tire-to-fuel plant in the Denver area and expects to have it fully operational during the second quarter of 2010. Novo, based on its novel technology, should be able to generate about 1 million gallons of fuel or fuel additives during the first year of the operation of its plant and 2 million gallons per year thereafter. As a result of the expected additional tire residual materials, Novo intends to also produce about 3,000 metric tons of carbon black and 900 metric tons of steel during the first year of operation and estimates that it will generate a minimum of 25,000 carbon credits per year.

"We are delighted to enter into a contract to secure a consistent feed stock from a reliable source such as Colorado Tire Recycling. Having this feed stock source will enable Novo to pursue the opening of its first plant in the United States and further our commitment to our shareholders and the environment," said Antonio Treminio, CEO & chairman.

Dwain Immel, a manager of Colorado Tire Recycling, LLC (CTR), states he "is excited about the development of a long term TDF supply contract with Novo Energies Corporation, and its new technology as it allows CTR to achieve a couple of its primary goals and objectives of recycling all of its scrap tires into higher value recycled end use products as well as promoting a cleaner and greener environment by recycling scrap tires rather than disposing these scrap tires in landfills in Colorado. The production of transportation fuels from scrap tires in Colorado will be a new technology that will continue to support Colorado's status as a leading renewable energy state and one all retail tire dealer customers should endorse since it will actually reduce carbon emissions rather than just simply burning the TDF product as an alternative fuel and generating additional carbon emissions."