Biomass Firm Secures Funding to Erase Debt

November 12, 2003 [SolarAccess.com] Castle Rock, Colorado-based Nathaniel Energy Corporation, a renewable energy company, whose Thermal Combuster converts biomass into energy, has secured US$12 million in capital funding, which includes the previously announced $5.5 million funding. Nathaniel Energy entered into an agreement with a private investment group to irrevocably convert $10 million of debt into equity. In the transaction, the debt will be eliminated from Nathaniel Energy’s balance sheet in the fourth quarter of 2003. In exchange, the group will receive 50 million shares of common stock at 20 cents ($0.20) per share. In addition, the company secured $2 million in long-term debt financing. Nathaniel Energy is exploring the possibility of applying for listing on the NASDAQ SmallCap Market in the belief that the elimination of debt will enable the company to meet the NASDAQ SmallCap Market’s stockholders’ equity listing requirement. Nathaniel Energy cannot assure that it will meet all of the NASDAQ SmallCap listing requirements, or if it does, that it will be accepted for listing on the NASDAQ SmallCap Market.

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