HyPower Fuel Receives First Tranche of Grant Money From Alberta Government's $239 Million Program for Bio-Energy

  HyPower Fuel, Inc. (PINKSHEETS: HYPF) is
pleased to announce that subsequent to meetings and site visits from
representatives of Alberta Energy and Alberta Agriculture that the first
tranche of funding under the Alberta Government's $239 Million Bio-energy
Infrastructure Development Program has been received.  Mr. Douglas Bender,
President of HyPower Fuel, Inc., stated, "We believe that the Provincial
Government representatives were suitably impressed with our Proof of
Technology demonstration plant. This plant proficiently displays our
unique, ultra-green alternative fuel technologies. We look forward to
submitting our next grant drawdown request under the program within the
next thirty days."

Doug Bender went on to say, "In addition to the Provincial Government departments affecting our technologies, we have developed an excellent relationship with the National Research Council of Canada. We have also commenced discussions with Export Development Canada with a view to provide funding for biofuel plant construction."

About the HyPower Biofuel Process

The HyPower Biofuel process is a cutting edge biodiesel technology that has a number of competitive advantages over conventional biodiesel production methods. The HyPower process uses essentially no catalysts or water to produce or purify the biodiesel produced. All inputs are recovered or converted to saleable products. The capital and environmental footprints of the process should be significantly less than conventional methods of biodiesel production.

About HyPower Fuel, Inc.

HyPower Fuel, Inc. is a category leading company in the energy technology sector, focusing on providing innovative, clean alternative energies through unique methods. Currently HyPower has hydrogen insertion and production technologies and biodiesel production technologies in development and/or in the product commercialization stage. For more information please visit: www.hypowerfuel.com.

Safe Harbor

This press release shall not constitute an offer to sell or a solicitation of an offer to buy securities of HyPower Fuel, Inc. Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward-looking statements are subject to a number of risks and uncertainties. The actual results the Company achieves may differ materially from any forward-looking statements due to these risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.

Investor Relations: Taylor Capitol, Inc. Stephen Taylor 973-351-3868 [e-mail]