BPG Bpi Energy Holdings,

BPI Energy (BPI), the operating subsidiary of 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 financial results for its fiscal first quarter ended Oct. 31, 2007. For the opening three months of fiscal 2008, revenues from gas sales reached $318,000, compared with $294,000 for the first quarter of 2007. The increase was attributable to higher sales volume, which was partially offset by lower sales prices. The company reported a narrower net loss of $1.9 million, or $0.03 per share, compared with last year�s first-quarter net loss of $2.7 million, or $0.04 per share. BPI President and CEO James G. Azlein commented, �While the average sales price for this fiscal year�s first three months declined compared with a year ago, revenues were up on double-digit volume increases. Net gas sales volume also sequentially rose 19 percent versus the prior three-month period.� BPI�s parent company, BPI Energy Holdings, Inc., also announced key events of its 2007 Annual General Meeting of Shareholders held today. A total of 146 shareholders representing 45,893,840 shares, or approximately 62 percent of the total outstanding shares, were represented in person or by proxy at the meeting. Re-elected as directors of the company were James G. Azlein, BPI president and chief executive officer, James E. Craddock, BPI chief operating officer, and four outside directors: Dennis Carlton, Joseph P. McCoy, David E. Preng and Costa Vrisakis. Shareholders also voted to ratify the appointment of Meaden & Moore, Ltd., as the company�s independent registered public accounting firm. 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 a large CBM acreage position in the Illinois Basin at approximately 529,000 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. �Financial Tables Follow� BPI Energy Holdings, Inc. Consolidated Statements of Operations (Unaudited) (Dollars in thousands, except per-share data) � Three Months Ended October 31, � 2007 � 2006 � � Revenue Gas sales $ 318 $ 294 � Operating expenses Lease operating expense 259 336 General and administrative expense 1,884 2,735 Depreciation, depletion and amortization � 180 � 184 � Total operating expenses � 2,323 � 3,255 � Operating loss (2,005 ) (2,961 ) Other income (expense): Interest income 97 219 Interest expense (2 ) (3 ) Other income (expense) � (26 ) � - � � 69 � 216 � Net loss $ (1,936 ) $ (2,745 ) � Basic and diluted net loss per share $ (0.03 ) $ (0.04 ) � Weighted average common shares outstanding � 70,133,653 � 68,796,522 � BPI Energy Holdings, Inc. Consolidated Balance Sheets (Dollars in thousands) � Oct. 31, 2007 July 31, 2007 (Unaudited) ASSETS Current Assets: Cash and cash equivalents $ 4,864 $ 11,292 Accounts receivable 157 94 Other current assets � 1,133 � � 1,348 � Total current assets 6,154 12,734 Property and equipment, at cost: Gas properties, full cost method of accounting: Proved, net of accumulated depreciation, depletion, amortization and impairment of $999 and $12,621 19,866 16,631 Unproved, excluded from amortization 9,375 8,533 Support equipment, net of accumulated depreciation and amortization of $789 and $741 � 504 � � 552 � Net gas properties 29,745 25,716 Other property and equipment, net of accumulated depreciation and amortization of $183 and $152 � 448 � � 473 � Net property and equipment 30,193 26,189 Restricted cash 100 100 Other non-current assets � 161 � � 220 � Total assets $ 36,608 � $ 39,243 � LIABILITIES AND SHAREHOLDERS� EQUITY Current Liabilities: Accounts payable $ 710 $ 1,371 Current maturities of long-term debt and notes payable 26 8,488 Accrued liabilities and other � 726 � � 1,503 � Total current liabilities 1,462 11,362 Long-term debt and notes payable, less current maturities 8,827 48 Asset retirement obligation 127 114 Other long-term liabilities � 60 � � - � Total liabilities 10,476 11,524 Shareholders� Equity: Common shares, no par value, authorized 200,000,000 shares, 73,618,764 and 72,524,493 issued and outstanding 67,946 67,946 Additional paid-in capital 7,957 7,608 Accumulated deficit � (49,771 ) � (47,835 ) Total shareholders� equity � 26,132 � � 27,719 � Total liabilities and shareholders� equity $ 36,608 � $ 39,243 �