VANCOUVER, May 3 /PRNewswire-FirstCall/ -- Clean Energy Combustion Systems Inc. (trading symbol CECU) is pleased to announce a letter of intent with Liqwood Inc., a sawmill operator in Northern British Columbia, Canada. The company has entered into a Joint Venture with Liqwood Inc. to build a wood waste based co- generation system based on our Gasifier technology. The Gasifier will drive an oil turbine system providing electricity in addition to heat, which will augment Liqwood's current milling operations with several applications, such as two stages of drying kilns, pyrolizing wood flour, extraction of lignin and making wood-derived bio oil. Once the primary site system in Fort St. James is up and running the company will share in the carbon credits and the joint venture will be positioned to market the completed solution to sawmill operators wherever wood waste is generated. The use of the gasifier and the proprietary burner technology will allow the utilization of a higher percentage of a tree. The Joint venture which will generate license and royalty fees in addition to design and consulting fees will be funded by a CCRE flow through investment offering targeted to the northern BC areas where these technologies will be applied. CECU announces the following financial arrangements. A share for debt financing with various vendors at USD. @$ 0.25 per share 600,000.USD. Forgiveness of unpaid compensation by management staff and contractors of the company in the amount of $710,000 USD Private Placement by a number of subscribers of $300,000. USD @ 0.25 cents per share plus a warrant at the same price for a year. As a result of the above financial arrangements the company will benefit from a stronger balance sheet helping to lay a solid foundation for the ongoing financial success of the company. CECU is pleased to report the completion of the offering documents and the commencement of fundraising for the Fraser Valley Farm Waste to Energy program. The previously announced joint venture was named Clean Thermal Energy Inc. upon incorporation. Accordingly, CECU has made arrangements to house the Research and Demonstration Laboratory in Abbotsford B.C. co-located with Clean Thermal and ecoGROW Corporation in a new facility at Angus Campbell Road. Background on Clean Energy. Clean Energy is a development-stage U.S. public company based in Vancouver, British Columbia, Canada. The company has acquired or developed a number of solid to gas phase thermal reactors and sonic standing wave combustion systems, which we believe are superior to the standard, steady-state combustion technology currently used, in terms of both energy efficiency and consequential fuel cost savings, as well as significantly reduced emission levels. For further information visit Clean Energy's Website at: http://www.clean-energy.com/ or contact: Investor Relations Clean Energy Combustion Systems Inc. Phone: 1.604.681.9383 Email: Forward Looking Statements: Clean Energy's development plans and the prospective potential of its Gasifier and pulse combustion technologies as described in this news release constitute "forward looking statements" within the meaning of the United States federal securities laws that involve risks and uncertainties. Actual results may vary substantially from expectations as a result of a variety of factors including, by way of example and not limitation, Clean Energy's financial requirements and current lack of capital; Clean Energy's inability to satisfactorily complete pending or new project proposals (including with prospective licensee or joint venture partners) and enter into binding revenue-producing contracts based upon those proposals; the overall inability of Clean Energy (or its licensee or joint venture partners, if any) to design, test, manufacture and sell pulse combustors on a profitable basis, including as a result of insufficient consumer acceptance of and demand for pulse combustors; regulatory constraints; changes in Clean Energy's business plan and corporate strategies; and the various risks and uncertainties disclosed by Clean Energy in its various reports filed from time-to-time with the SEC. Readers are urged to carefully review and consider the various disclosures made by Clean Energy in its various reports filed from time-to-time with the SEC that attempt to advise interested parties of the risks and uncertainties that may affect Clean Energy's business and an investment in its securities. DATASOURCE: Clean Energy Combustion Systems Inc. CONTACT: For further information visit Clean Energy's Website at: http://www.clean-energy.com/ or contact: Investor Relations, Clean Energy Combustion Systems Inc., Phone: (604) 681-9383, Email:

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