New Gen Biofuels (NGBF) Enters in $1M Private Placement

Renewable fuels provider New Generation Biofuels Holdings, Inc. (Nasdaq: NGBF) announced today that it has entered into a definitive agreement with a several institutional investors for a registered direct offering of 5,000,000 shares of previously unissued common stock at a price of $0.20 per share with total gross proceeds of $1.0 million. In addition to the issuance of common shares, New Generation will issue to the investors warrants exercisable for one common share for every four common shares purchased with an exercise price of $0.30 per share. The warrants will expire 5 years from the closing date. The common shares sold, the warrants and the shares underlying the warrants are to be issued under New Generation's Form S-3 shelf registration statement that was previously declared effective by the Securities and Exchange Commission on January 27, 2009.

Palladium Capital Advisors LLC, acted as the Placement Agent for this transaction.

New Generation expects to use the net proceeds for general working capital purposes. The offering is expected to close on August 17, 2010, subject to satisfaction of customary closing conditions.

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