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Prairie Bio Energy Group (PBE Group) have signed a partnership

PBE Group Catapults in Growth with New Partnership WINNIPEG, MANITOBA – Eugene Gala and Stéphane Gauthier, partners in Prairie Bio Energy Group (PBE Group) have signed a partnership with a multi-billion dollar Canadian organization, La Coop fédérée, enabling PBE Group to grow exponentially. PBE Group is approaching the point of full commercialization at their customized biomass production plant in La Broquerie. They are also expanding staff size and office space in Winnipeg.

The main business activities of PBE Group thus far include the production of densified biomass products, as well as the design of Blue Flame biomass combustion systems that are able to process crop residue into heat for small communities and other applications. The company entered into a partnership with La Coop féderée to become strategic partners in growing PBE’s market share and production capacity of “Simply Straw”, their proprietary animal bedding product, to be available to market in 2013. Cyrille Neron, Director of Innovation and Growth at La Coop fédérée states, “La Coop fédérée has identified the ideal partner to take the lead in the Canadian biomass industry. Prairie Bio-Energy has developed an extensive knowledge and know-how in biomass material handling and transformation into value-added products, as well as biomass combustion systems. Their vision and entrepreneurial spirit has allowed them to establish a vast network across North America. Prairie Bio-Energy plays a significant role in growing sustainable local economies within the agricultural sector, an essential part of the La Coop fédérée vision”.

The agreement made La Coop fédérée the owner of 50 per cent of all intellectual properties possessed by the PBE Group. Together they are working on a number of major projects including: marketing of Blue Flame biomass combustion systems across Canada, consultation services on projects that require technical knowledge relating to biomass and the Blue Flame product, support for the Sonic Energy division of La Coop fédérée in their desire to develop heat production from biomass in Québec, and a possible study on the implementation of a Blue Flame production facility in Québec. The opportunities with La Coop fédérée are very promising according to Stéphane Gauthier, co-founder of PBE Group, “We have made some sales across North America, but La Coop fédérée has an established network that we will be able to leverage. We are excited about the growth potential with our new partnership."

While the partnership will expand PBE’s presence into Québec, the company will remain headquartered in Manitoba. The plant in La Broquerie, MB is expected to initiate production in spring 2013. Gala and Gauthier came to The Eureka Project in spring of 2010, a business that supports technology companies in accelerating growth by providing strategic planning, finance, sales and marketing services as well as turnkey office space. Eugene Gala comments, “Through our work with Gary Brownstone’s team at The Eureka Project, we have learned how to prepare for growth and position our companies well for strategic partnerships. We look forward to our continued relationship as we embark on this next chapter with PBE.” -30-

About Prairie Bio Energy Inc. Prairie Bio Energy Inc. was launched in 2004 in Winnipeg by Stéphane Gauthier and Eugene Gala. The company developed a bio fuel made primarily from dense straw that could replace coal. Coal is widely used in Manitoba as well as other parts of Western Canada. It is the mission of the La Broquerie facility to continuously develop innovative technologies in order to produce a variety of high quality value added products for the agricultural biomass industry; the facility will also house a commercial production line, utilizing the latest technology of which we have developed. It is our vision to become a leader in the North American renewable energy market.

About La Coop fédérée Founded in 1922, La Coop fédérée is the biggest agri-food enterprise in Québec and ranks among the 100 biggest cooperatives and mutuals in the world, all sectors combined. It is owned by more than 90,000 members grouped in 103 cooperatives spread through several provinces of Canada. La Coop fédérée is present throughout the agri-food chain and, as a wholesaler, provides agricultural producers with the goods and services necessary to operate their farm businesses. Its network includes five banners: Elite and La Coop (livestock and plant production and grain marketing), Unimat (hardware and farm machinery), Sonic (energy) and Olymel (meat processing). La Coop fédérée and its network employ over 16,000 people and have a cumulative turnover of $8.5 billion. www.lacoop.coop and twitter: @LaCoop_federee

About The Eureka Project The Eureka Project helps hi-tech companies accelerate their growth. It seeks brilliant innovators who have created disruptive technology with global market potential and need assistance in scaling up rapidly. The C-Level management experts at The Eureka Project seek to help these “passionate creators” to grow their businesses by offering services centred on the driving force of growth: sales. The sales services include lead generation, direct sales and sales management, and Channel Management. Additionally, Eureka offers services in marketing, strategic planning, finance, and corporate infrastructure (including turnkey office space).

For more information on La Coop fédérée Ben-Marc Diendere Director of communications Email: Ben-marc.diendere@lacoop.coop Twitter: @marc_ben

For more information on Prairie Bio Energy Inc. Samantha Owsianski Executive Assistant, Prairie Bio-Energy Inc. T: (204) 990-3979 E-mail: sam.owsianski@gmail.com

For more information on The Eureka Project contact: Ashley McIntosh Marketing Manager, The Eureka Project T: (204) 262-6410 F: (204)262-6407 E-mail: ashley@eurekaproject.ca www.eurekaproject.ca

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