Vega Biofuels to Cancel 26.5 Billion Shares

NORCROSS, Ga., April 20, 2011 /PRNewswire/ -- VEGA BIOFUELS, INC. (Pink Sheets: VGPR) announced today that the Company will cancel 26.5 billion shares of its common stock.

The Company is cancelling 25 billion shares that were originally issued for Vega's management team for services previously rendered to the Company.  The Company will also cancel 1.5 billion shares that were originally issued as a settlement of debt.  The Company was able to settle the debt for fewer shares than originally planned.  Vega's issued and outstanding common shares will be reduced from 31 billion to just over 4.5 billion.  The Company's float will be reduced from 4,002,391,374 shares to 2,502,391,374 shares.

"These latest moves are part of our recent reorganization and allow us to concentrate our efforts on building our bio-coal manufacturing plant in South Georgia," stated Michael K. Molen, Chairman/CEO of Vega Biofuels.  "The shares are being cancelled so that we can reduce the number of shares we have outstanding and not have to conduct a reverse split of our stock.  We are also very pleased to once again be fully compliant with Pink Sheets and as we move forward, we will be providing additional details about the South Georgia manufacturing plant."

Vega recently announced its plans to build a manufacturing plant in South Georgia that when completed will produce green energy bio-coal for use in existing coal fired power plants.

Bio-coal is made from a process called "torrefaction."  Torrefaction is a partial carbonization process that takes place at temperatures between 475 - 575 degrees in a low temperature environment which makes the physical and energetic properties of the biomass much more comparable to traditional coal. The biomass is then compressed into briquettes to be sold to the end user.  Torrefaction has the added benefit of reducing or eliminating undesirable volatiles, such as nitrous oxides and sulfur dioxides and is considered carbon neutral to the environment.  Power providers around the world can use the bio-coal without having to retrofit their existing power plants.

Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "plan," "project," "intend," "expect," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (finance or operating) or achievements to differ from future results, performance (financing and operating) or achievements expressed or implied by such forward-looking statements.

CONTACT: Vega Biofuels, Inc.: 800-481-0186

SOURCE Vega Biofuels, Inc.

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