Chile's Sky Airline enters into non-binding agreement to purchase Florida-based PetroAlgae's feedstock for conversion into renewable jet fuel

MELBOURNE, Florida , November 11, 2010 (press release) – Joint Effort with leading Airline Focuses on Renewable Jet Fuel

PetroAlgae Inc. (PALG 11.00, 0.00, 0.00%) , a leading U.S. renewable energy company that licenses its commercial micro-crop technology globally, today announced it has entered into a non-binding offtake supply agreement with Sky Airline, a leading Chilean airline providing passenger, mail, and cargo air transportation services.

Subject to certain conditions, Sky Airline and PetroAlgae have agreed to collaborate to enable Sky Airline to purchase the fuel feedstock produced by licensees of PetroAlgae's technology as a feedstock for conversion into renewable jet fuel.

PetroAlgae currently licenses and deploys the leading biomass production platform to address existing and growing unmet needs in the global energy and agriculture markets. Its proprietary technology, consisting of light and environmental management systems, allows its customer licensees to grow aquatic microorganisms at a rate that consistently exceeds four times the natural growth rates. This enables the commercial-scale production of two end-products: a fuel feedstock and a protein. The fuel feedstock is intended to be used principally in existing refineries, resulting in renewable fuels, including renewable jet fuel.

"We are excited to be working with PetroAlgae to bring green jet fuel to Chile," said Holger Paulmann, Director of Sky Airline. "Our airline has always prided itself on being at the forefront of change that is good for our customers, the economy, and the country. With PetroAlgae's commercial-scale biomass from micro-crops, we hope to develop clean renewable jet fuel in existing refineries, which will reduce our reliance on fossil fuels and create green jobs in the process."

About PetroAlgae

PetroAlgae Inc. (PALG 11.00, 0.00, 0.00%) , based in Melbourne, Florida, is a renewable energy company that licenses and deploys the leading biomass production platform to address existing and growing unmet needs in the global energy and agriculture markets. The company's technology enables the growing and harvesting of a wide variety of non-algae, aquatic micro-crops suitable to local climates in open-pond bioreactors. For more information about PetroAlgae, please visit our website at http://www.petroalgae.com.

About Sky Airline

Based in Santiago, Chile, Sky Airline flies to many of the country's top destinations, including Arica, Iquique, Calama, Antofagasta, El Salvador, Copiapo, Concepcion, Temuco, Puerto Montt, Balmaceda and Punta Arenas. Sky Airline also has international flights to Arequipa and Lima in Peru, Buenos Aires, Argentina, and La Paz, Bolivia. For information, please visit our website at http://www.skyairline.com.

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