Energy

Our Goshen Energy Resources Bio-Fuel Operations Division is involved in the production of alternative fuels and production facilities, with a current focus on biodiesel. The overall effect of this line of services will increase the availability of value-added energy sources and strategically provide relief to energy security, environmental, economic and social issues. To ensure our success in this arena, we utilize a Five Point Energy Operation Plan.

Goshen’s energy agenda is based upon the following objectives:

1. Promote national security by reducing dependence on foreign oil as we leverage existing US fossil fuel resources, through maximization of alternative fuels and creating strategic exchange relationships.
2. Catapult non-food agribusiness as a prominent industry by creating economically viable rural communities through partnerships with municipalities and farmers to grow energy crops.
3. Save valuable food resources such as soy and corn, currently being utilized for alternative fuels, and instead cultivate exclusive “energy crops” as renewable agri-feedstock sources.
4. Provide opportunities for economic development through critical research, education and job training for renewable energy concepts and operations, to help propel localities economically.
5. Address negative environmental issues through methods such as the reprocessing of waste cooking oil, clean energy crop and biomass recycling and the development of innovative technologies for water purification and energy conservation.

We are intent upon taking measures to expand the development and use of renewable energy sources nationally and leveraging our partnerships and resources to this end. We encourage you to explore your ability participate as an innovator in this industry, particularly as a partner with Goshen Energy Resources.

Our Case: The Goshen Bio-Fuel Operations Division

There are approximately 225 inhabited countries and territories in the world. The United States accounts for 6% of the global population and consumes 25% of the world’s energy sources. China accounts for 25% of the global population and energy consumption and is closely followed by India, both rapidly developing, high-energy consuming countries. Globally, we will soon surpass 100% energy capacity using a finite resource. America’s position in the global marketplace is shifting and it is imperative to relieve dependency on foreign oil as well as address the depleting geo availability of crude oil.

Enter the biofuel industry and Goshen’s core service area, biodiesel - or alkyl esters. This is a clean burning alternative fuel, produced from domestic, renewable resources. Made through a chemical process called transesterification, biodiesel contains no petroleum, but it can be blended at any level with petroleum diesel to create a biodiesel blend. Goshen processes B100 biodiesel; meaning our finished product is pure grade, or not yet blended with petroleum based diesel. It can be used in compression-ignition (diesel) engines with little or no modifications. Diesel operating systems account for the bulk of federal, state and local government engine operations as well as in private and commercial industries.

According to a study by the National Biodiesel Board, the premiere industry authority, the biodiesel industry will add $24 Billion to the US economy between 2005 and 2015 and reach an annual production of 650 million gallons. With regard to economic impact, based on the study, biodiesel production will create over 39,000 jobs in all sectors of the economy. The benefits of this product crosses industries and cultures because biodiesel provides:

• a cleaner burning fuel that drastically decreases emissions (the EPA estimates that biodiesel produces 78.5% less carbon dioxide than petroleum diesel) providing for cleaner air.
• increased labor opportunities
• in some cases, pricing very close to that of petroleum diesel, often less.
• a growth market with continued utilization, especially for B100, which is likely to experience an increase in demand as the commercial and environmental benefits become more apparent.

The Goshen Approach

The future for the world’s energy needs lies in renewable, locally produced, low emissions fuel sources. By focusing on our core services of processing and delivery of biodiesel for government, municipal, commercial and private sectors, as well as the manufacturing and sale of related equipment, we will systematically ease the demand for petro-based diesel. This achievement will gradually redirect fossil resources into the consumer supply chain for gas pricing relief.

Prior to building our first biofuel refining facility, the Goshen Approach was to establish contractual relationships on a national level for guaranteed purchase and distribution. Our first such agreement, signed in September 2007, is with Verde Biofuels, Inc., a South Carolina corporation, to purchase up to 10 Million gallons of Goshen B-100 and B-99.9 biodiesel per year, to distribute across the United States. Verde will pay all of the production costs for the fuel it distributes, and we will split the net profits on the sale of each gallon. Verde also has right of first refusal on any other U.S. production of Goshen biodiesel.

Verde Biofuels, Inc. is a leading supplier of premium biodiesel with decades of experience in the energy industry. Customers include convenience stores, bulk plants, municipalities and government agencies nationwide.

We are also using our extensive relationships with municipalities, communities and institutions that have indicated an interest in having a Goshen facility in their hometown. These groups are providing a variety of incentives to help us get each facility up and running quickly.

The entire Goshen initiative is managed by a team with a exemplary ethics, core knowledge and competitive operations skill set, and exclusive technology to ensure swift and efficient growth within the bio-energy arena. Verde has made available several members of their management available for direct assistance and guidance in the growth of the company.

Moving Forward

Goshen is currently positioned for exponential growth and movement to the forefront of the biodiesel industry. We currently hold strategic relationships to establish our product supply in ten major locations spanning four national regions. We are set to initiate five plants nationally within the next 18-24 months. These facilities will be between three and ten million gallon facilities. Early 2008 will see the launch of our pilot project in Louisville, Kentucky where we will test our fuel on 5 trucks in a fleet from a prominent national trucking company. We have already solidified a major feedstock supply and product distribution agreement with Verde biodiesel. We are exploring with intent to solidify new partnerships structured around Joint Venture (JV) agreements scheduled for production and delivery in fourth quarter 2008.

Goshen Project Investor Opportunities - Feedstock Acquisition

We are currently considering subsidy/equity/supply agreements.

Land Production – In partnership with federal agencies, municipalities and/or farmers, Goshen explores JV arrangements for the seed and cultivation of energy crops for biofuel processing.

Plant Development – In partnership with government and municipal bodies, Goshen explores JV arrangements that provide the operating and storage space and business incentives for biodiesel processing to supply local needs. Our focus is on 5,000,000 to 50,0000,000 gallon per year capacity processors or smaller scale (500,000 gallons per year) on university campuses.

Waste Collection – In partnership with restaurants or other cooking establishments and waste management service providers, Goshen explores mutually beneficial opportunities to secure waste cooking oil and biomass for biofuel processing.

Bio Industry Research – In partnership with government targeted colleges and universities, Goshen explores agri-processing advances within the industry and opportunities to place small scale processors and/or generators on campuses to increase internal energy supplies.

Opportunities - Production and Supply

Goshen is acquiring new clients who will be positioned for delivery of biodiesel beginning fourth quarter 2007.

Biodiesel – Goshen engages in providing supply clients with B100 biodiesel meeting ASTM and EPA standards suitable for wholesale purchase for retail distribution.

Generator Distribution – Goshen engages in manufacturing and supply opportunities for biodiesel generators to increase energy consumption and capacity through use of the cleaner burning source, biodiesel.

Primary clients for production and supply are: government, municipal or university purchasers, commercial retailers and private industry.