Expander Energy Inc. Announces $2.0 Million Flow-through and Common Share
Financing

CALGARY, Oct. 19 /CNW/ - Expander Energy Inc. (Expander) announces a $2.0 million Flow-through and common share financing. Expander is a privately held energy company focused on the production of Engineered Synthetic Fuels from renewable and low carbon resources. Expander's engineered synthetic fuels are complementary to existing engine technologies and transportation fuel distribution infrastructure and will enable up to a 90% reduction in greenhouse gas emissions.

The Company intends to offer up to 5,714,285 Flow-through Class "A" shares at $0.35 and up to 6,666,667 Class "A" common shares at $0.30 to a total combined value of $2.0 million.  This offer is being made to "Accredited Investors" who are Canadian Residents.

Purchasers of Flow-through shares will receive "Canadian Renewable & Conservation Expenses" tax credits (CRCE) as renounced by Expander.  The CRCE program provides a 100% tax deduction for intangible expenses incurred during the development of a system eligible under section 43.1 of the Income Tax Act. The objective of the program is to promote the development of conservation and renewable energy projects in the same manner currently applied to investments in traditional resource activities.  Expander will incur CRCE eligible expenses associated with the design and engineering of our Biomass to Liquid Fuel Refinery in Alberta.

Non Flow-through proceeds will be directed toward our patent application process, biomass acquisition, refinery site location and general corporate purposes.

Expander Energy—is an Alberta-based Company focused on the production of "engineered synthetic fuels" from renewable and low-carbon sources. Expander is moving forward with plans to construct Canada's first biomass to synthetic diesel facility—a 120,000 litre per day (750 bpd) biorefinery near Edmonton, Alberta. Expander will manufacture synthetic diesel from wood waste using CHOREN's (Germany) proven gasification technology—Carbo-V.^®  Expander's synthetic diesel is a "Fourth Generation Biofuel" which exceeds all world-wide regulatory classifications for diesel, contains zero sulphur, zero aromatics and has a cetane rating of +80. 

For additional information, please go to www.expanderenergy.com or contact Mr. Ross directly.

For further information:

James (Jim) Ross, CEO Expander Energy
Suite 200 1414 - 8^th Street S.W.
Calgary, AB T2R 1J6
[phone]
[email protected]