GAEC Gulf Alternative Energy Corporation (CE)

Gulf Alternative Energy Corporation (Pink Sheets:GAEC) announced today the lab test results on its biomass pre-processing technology. This unique process converts cellulosic biomass into a fine, dry powder for processing into ethanol. Testing was conducted by the highly respected Microbac Laboratories, Inc. in Boulder, Colorado.

Lab results showed that all sugars were produced from Gulf Sorghum in 16 hours compared to 64 hours for unprocessed control samples. This is a 400% increase in processing speed under controlled lab conditions. Microbac concluded that Gulf�s industrial grade processing was as efficient as the best lab scale processing used to test biomass. The report concludes that the GAEC process significantly impacted processing time for cellulosic ethanol.

�Independent lab results now confirm what we expected from Gulf�s cellulosic feedstock pre-processing technology � it makes a big difference in processing efficiency,� noted John Shearer, President of GAEC. �This test lays to rest any questions regarding the validity and value of Gulf�s process to development of the cellulosic ethanol industry.�

In addition, the company has updated its web-site and invites those interested in the Company to visit www.GulfAlternativeEnergy.com for an update on the Company. Gulf is focused on commercializing its cellulose pre-processing technology and on expanding its green technology portfolio. Transforming cellulose to ethanol efficiently is a technical challenge that will transform the biofuels industry. Gulf Alternative Energy believes it has moved the industry much closer to economic viability with its preprocessing technology that turns non-food plant material (called biomass) into extremely small particles that can more quickly and more cheaply be turned into ethanol.

About Gulf Alternative Energy Corporation

Gulf Alternative Energy is an alternative energy company focused on the development of the alternative energy industry with a particular emphasis on Texas and the Gulf Coast.

For more information, visit www.gulfalternativeenergy.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipate" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.

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