ALTERNATIVE ENERGY SOURCES TO BUILD ETHANOL PLANT.

Kansas City-based Alternative Energy Sources Inc. (OTCBB:AENS) today announced plans to build a 110-million-gallon ethanol plant in Greenville, Ill., 45 miles east of St. Louis. This follows announcements in August that the company plans to build ethanol plants in Central Iowa and Northern Illinois.

The Greenville plant will be adjacent to the CSX and BNSF main railroad lines and served by the Illinois Western Railroad. Access to two mainline railroads offers competitive advantages, including maximum flexibility in shipping products and leveraging of freight arbitrage opportunities. The plant location is within five minutes of Interstate 70 and 30 minutes from Interstate 55 and 64, providing truck transport to Midwestern markets. "With both rail and truck shipping capabilities readily available, we will be able to serve national markets as well as neighboring communities in Central and Southern Illinois and Eastern Missouri," stated Mark Beemer, AENS president and CEO.

AENS has optioned 100 acres at the John W. Kelsey Business & Technology Park. "The amount of land optioned allows for the large footprint needed for flexibility in plant design and to apply our business model," said Lee Blank, AENS executive vice president and chief operating officer. Blank and Beemer are both former executives of Archer Daniels Midland Co., the nation's No. 1 ethanol producer.

Construction is planned to begin within the next year, with the plant scheduled to be in operation by late 2008. To obtain funding for infrastructure needs and move forward with the project, meetings will be held with local, state and federal officials. Using more than 40 million bushels of corn annually, the plant will be a major consumer of corn grown in Bond, Fayette and Effingham Counties. Annual output is projected to be more than 110 million gallons of ethanol.

Once in operation, the plant will provide jobs for 45 to 55 people with payroll between $2.5 and $3.5 million. The facility will have many components in common with those in the 110-million-gallon plants to be built in Boone County, Iowa, and Kankakee, Ill. All of the plants are projected to produce about 100 carloads of ethanol per week.

Beemer further noted U.S. automakers are producing more vehicles that run on a fuel mix of 85 percent ethanol and 15 percent gasoline, and that gas stations are continually gaining customers at their E-85 pumps.

"With Carlyle SynTec expanding its facility with a new 300,000 square foot warehouse and now the announcement by AENS of a new ethanol facility, Greenville continues to expand its industrial base," said Alan Gaffner, Greenville mayor. "This provides additional momentum for further activity in our industrial park, which has been identified as one of the most attractive in Central and Southern Illinois. Greenville is positioned close enough to have benefits of the city, but also has the benefits of a rural community."

Greenville's economic development department works hard to bring industrial prospects to the Howard Wolf and John Kelsey Industrial Parks. "We are delighted with AENS's decision to locate their plant in Greenville," said David Willey, city manager. "We are looking forward to a completed project and further development in the park."

About Alternative Energy Sources Inc.: The company is developing "greenfield" sites, including constructing, owning and operating fuel-grade ethanol plants. The management team has extensive experience in agricultural processing, grain trading, railroad negotiations, logistical economics, construction, acquisitions and operating as a public company. The founders have extensive management and leadership experience, including serving in executive management positions with agri-processing giant Archer Daniels Midland Co., the largest producer of ethanol.

For more information, visit http://www.aensi.com or call 913/262-7414.