BPG Bpi Energy Holdings,

BPI Energy Holdings, Inc. (Amex:BPG), an independent energy company engaged in the exploration, production and commercial sale of coalbed methane (CBM) in the Illinois Basin, today announced that its wholly owned subsidiary BPI Energy, Inc., has closed on a Senior Secured Advancing Line of Credit from GasRock Capital of up to $75.0 million. The line of credit comprises an immediate commitment of $10.2 million plus an additional capacity of up to $64.8 million that may be advanced by GasRock in its discretion, which is expected to be based on its quarterly reviews of BPI�s operations. Proceeds are expected to be used for continued development-well drilling at the Delta Project, drilling of new test wells, pilot projects as well as lease acquisitions. President and Chief Executive Officer James G. Azlein said: �This financing puts BPI Energy one step closer to becoming financially self-sufficient. Working closely with GasRock, we were able to successfully structure a facility uniquely suited to BPI�s specific needs to drill development wells while expanding and testing its acreage position�without incurring any dilution in the equity of our current shareholders. With the potential capacity available to us under this facility, we look forward to furthering our mission to maximize shareholder value.� The annual interest rate on the credit line is 15 percent for the first 12 months. GasRock has an option to extend the term to 48 months, in which case, the interest rate will be reduced to 12 percent through the balance of the term. This financing does not include any pre-payment penalties, warrants, options or conversion rights that could result in the issuance of additional equity shares. Upon closing, GasRock has been assigned an overriding royalty interest (ORRI) of 1 percent in all leases currently controlled by BPI and an additional 4 percent ORRI in BPI�s existing wells. BPI will likewise assign GasRock a 4 percent ORRI in any wells drilled, worked over or acquired while the loan is outstanding. BPI has a 100 percent working interest in 100 percent of its current acreage position. To be added to BPI Energy�s e-mail distribution list, please click on the link below: http://www.clearperspectivegroup.com/clearsite/bpi/emailoptin.html About BPI Energy BPI Energy (BPI) is an independent energy company engaged in the exploration, production and commercial sale of coalbed methane (CBM) in the Illinois Basin, which covers approximately 60,000 square miles in Illinois, southwestern Indiana and northwestern Kentucky. The company currently controls the dominant CBM acreage position in the Illinois Basin at approximately 500,000 acres. News releases and other information on the company are available on the Internet at: http://www.bpi-energy.com Some of the statements contained in this press release may be deemed to be forward-looking in nature, outlining future expectations or anticipated operating results or financial conditions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results or conditions to differ materially from the information expressed or implied by these forward-looking statements. Some of the factors that could cause actual results or conditions to differ materially from our expectations, include, but are not limited to: (a) our inability to generate sufficient income or obtain sufficient financing or draws under our advancing term credit agreement to fund our operations or future drilling plans, (b) our inability to retain our acreage rights at our projects, at the expiration of our lease agreements, due to insufficient CBM production, or for other reasons; (c) our failure to accurately forecast CBM production, (d) displacement of our CBM operations by coal-mining operations, which have superior rights in most of our acreage, (e) our failure to accurately forecast the number of wells that we can drill, (f) a decline in the prices that we receive for our CBM production, (g) our failure to accurately forecast operating and capital expenditures and capital needs due to rising costs or different drilling or production conditions in the field, (h) our inability to attract or retain qualified personnel with the requisite CBM or other experience, and (i) unexpected economic and market conditions, in the general economy or the market for natural gas. We caution readers not to place undue reliance on these forward-looking statements.