Company Information for Sterling Biofuels International Limited

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Company Statement

Sterling Biofuels International Limited (ACN 119 880 492) is a public company limited by shares incorporated under the Corporations Act. It was listed on the Australian Stock Exchange on 25 September 2006.

Through its wholly owned Malaysian subsidiary, SPC Biodiesel Sdn Bhd, Sterling Biofuels has constructed a 100,000 tonne per year Biodiesel plant in Lahad Datu in the Malaysian state of Sabah which is ready to commence production.

Building on its biodiesel manufacturing base, the Sterling Biofuels Group has initiated diversification into upstream activities namely oil palm plantations and palm oil milling via its wholly-owned Malaysian subsidiary - SPC Biodiesel Sdn Bhd. As palm oil is the primary feedstock for the manufacture of its biodiesel, the participation and investment by the Group in various upstream activities within the industry value chain is a logical and complementary extension to its biodiesel business.

In this regard, the Group will have a plantation arm - Sterling Plantations Sdn Bhd that will undertake plantation development and management whilst SPC Palm Mills Sdn Bhd will undertake the construction and operation of a palm oil mill.

Company Diagram

SPC Biodiesel's brand new multifeedstock biodiesel plant

Operations and Technology

SPC Biodiesel Sdn Bhd is a wholly owned subsidiary of Sterling Biofuels International Limited. Its principal activities are:

• Construction and operation of a 100,000 tonnes per annum biodiesel manufacturing plant in Lahad Datu, Sabah; and
• To manufacture and sell biodiesel to global markets – in particular, Europe.

The biodiesel will primarily be made from palm olein (refined form of palm oil).

Despite various logistical challenges that needed to be overcome, the biodiesel plant was built in less than a year - within the time frame and under the budgeted cost specified in the prospectus. SBIL expects to commence production of biodiesel in 2007.

Strategic Location
To this end, SPC Biodiesel has acquired 10 acres of land within a purpose-built industrial park, known as the Lahad Datu Palm Oil Industrial Cluster, for the construction of the plant. This industrial park is being developed by the Sabah state government on the east coast of Sabah and is dedicated to palm oil related industries.

The location of the plant within the industrial park in Lahad Datu will allow SPC Biodiesel to take advantage of dedicated facilities, a deep water port and well established refining and oil handling infrastructure.

Feedstock & Offtake

• Abundance of palm-based feedstock; The annual Malaysian production of palm oil is in the region of 16 million tonnes. Added to this, the long history of established agronomic and large scale estate management practices aids the efficient and stable production of palm oil by the palm oil industry. This contributes to ensuring security of supply for biodiesel manufacturers like SBIL. No other new alternative feedstock has yet to develop similar industry characteristics and deliver commercial quantities for consideration.
• Location of plant in heart of palm oil country; Lahad Datu is the right choice of location as approximately a third of Malaysia's annual production comes from Sabah of which 90-95% is accessible from Lahad Datu.
• Rising demand for palm biodiesel; The growing demand for renewable energy sources as a means of addressing the issue of global climate change has led to an increasing demand for palm biodiesel as an alternative to biodiesel produced from rapeseed oil or soy oil.

SPC Biodiesel has secured the sale of its entire production of Biodiesel to an international energy trader.
 
Production Technology
SPC Biodiesel utilises proven biofuels technology sourced from De Smet Engineering (SEA) Pte Ltd, part of the Desmet Ballestra Group, an international supplier of oleochemical equipment.

The plant utilized Desmet Ballestra as the technology supplier and this helped considerably as they have built and are building several biodiesel plants around Malaysia. With their experience from their earlier Malaysian plants of similar size and type, they implemented enhancements to the SBIL plant at no further cost.

Geographical Spread

Board of Directors and Key Management

Non-Executive Chairman	Alister T Maitland
Group Managing Director	CRS Paragash
Group Executive Director	Andrew Phang
Non-Executive Director	Adam Sierakowski
Company Secretary	Susan Hunter

Company Address Ground Floor 16 Ord Street West Perth WA 6005 Australia PO Box 541 West Perth, Western Australia, Australia WA 6872 Telephone: +618 9324 8583 Facsimile: +618 9324 8586 Email: sales[at]sterlingbio.com Website: http://www.sterlingbiofuels.com

Additional Address/Key Contact Head Office: Susan Hunter Company Secretary of Sterling Biofuels International Ltd hunters@norvest.com.au      Malaysian Office:      Unit 607 Block C, Pusat Phileo Damansara 1, 9 Jalan 16/11 46350 Petaling Jaya, Selangor, Malaysia. Tel : +603 7954 5020 Fax : + 603 7954 5023        Contact Person: Mr. CRS Paragash Group Managing Director crsp@sterlingbiofuels.com

Broker/Analyst Reports

20/12/06 - BBY Limited

Related News

18/09/06 - Sterling Biofuels Listing On Australian Stock Exchange

Most Recent Statement

12/09/07 - Sterling Biofuels kickstarts upstream strategy - Acquires rights to develop oil palm plantation
04/09/07 - Sterling Biofuels to enhance current operations with upstream activity participation
29/08/07 - Preliminary Final Report for the year ended 30 June 2007
30/07/07 - Successful Variation to Feedstock Supply Contract and Potential Use of Crude Palm Oil as Feedstock
26/07/07 - Quarterly Cash Flow Report
23/07/07 - Completion of Plant Construction and Pre Commissioning – Under Budget and On Time