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NABR-CARBONDALE, LLC AND LANSING TRADE GROUP, LLC ANNOUNCE ETHANOL MARKETING AND CORN ORIGINATIONS AGREEMENTS
ST. LOUIS, MO — November 29, 2005 — NABR-Carbondale, LLC, (NABR) a project company of North American Bioenergy Resources, LLC working toward the financial close of a 50,000,000 gallon per year dry milling ethanol plant in Carbondale, IL, has entered into both an ethanol marketing agreement and corn originations agreement with Lansing Trade Group, LLC (Lansing). These agreements, both set to run for 7 years from the completion of the construction of the plant in 2007, will place NABR in a strong position in the ethanol production industry with Lansing's experience and knowledge of the corn and ethanol markets.
NABR has introduced many innovations into the design of Carbondale ethanol facility. This plant will produce ethanol from a proven corn fractionation process that increases the value of every bushel of corn delivered to NABR by Lansing by separating the corn into 3 basic fractions, while using only the corn starch for the ethanol distilling process. These co-products will add substantial revenue to this operation in comparison to a traditional ethanol dry mill. In addition, NABR will integrate a natural gas substitution strategy that will significantly reduce its natural gas needs in the operation. This same innovative capability has worked its way into the agreements with Lansing for the provision of several pricing alternatives for corn and ethanol which are unique to the industry.
"The ethanol industry is experiencing a period of unprecedented change that is creating an environment ripe for new business and technology models that will not only maintain a competitive position in a very competitive market, but also serve as flexible platforms to capture and enhance value," said Luis Zambrana, Senior Managing Member of NABR. "Accordingly, world class trading, marketing and logistics execution capabilities, robust price discovery tools and innovative margin protection solutions will be key differentiators in the ethanol market space going forward. To that end, NABR is highly confident that Lansing will bring a solution set not offered by others that will help us meet or exceed our margin and risk management objectives."
Lansing has been in the business of trading commodities for 75 years, and offers corn originations services and ethanol marketing services as a direct extension of the trading skills which have been with the company since its beginning. Lansing is actively trading both corn and ethanol, as well as many other commodities from coast to coast, with a growing international presence. Lansing has recently developed long term pricing alternatives for ethanol plants that are unique in the market place.
Bill Krueger, President and CEO of Lansing, said, "NABR has a very professional and engaged management team. We believe this team has what it takes to produce a highly competitive and profitable ethanol business with opportunities for growth in the future."
About North American Bioenergy Resources, LLC
NABR is in the process of moving toward financial close of its ethanol plant in Carbondale, IL. This facility is expected to produce over 50,000,000 gallons of fuel ethanol per year. This plant will require approximately 18.5 million bushels of corn per year. The corn fractionation process that will be utilized at this plant will produce a high protein distillers' grain, corn germ meal, crude corn oil, and corn bran. These products are expected to generate substantially more revenue for NABR than would a conventional dry mill ethanol plant. NABR is permitted and has plans under way to construct another ethanol project in Grant County, KS.
About Lansing Trade Group, LLC
Lansing Trade Group is a privately owned firm formed in 1931. The current ownership group has grown Lansing into a national trading company, growing beyond its grain roots with growth into the energy market. Lansing Trade Group formed Lansing Ethanol Services, LLC in March 2006 to trade ethanol. Lansing Trade Group trades whole grains, feed ingredients, and energy products, including biodiesel, in U.S. domestic and export markets. Current annual revenues are approximately $5 billion. Company headquarters are in Overland Park, Kansas. Additional information is available online at www.lansingtradegroup.com and www.lansingethanolservices.com.
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