BPI Energy Announces Swift Progress at Northern Illinois Basin Project.

CLEVELAND -- BPI Energy ("BPI") (AMEX:BPG), an independent energy company engaged in the exploration, production and commercial sale of coalbed methane (CBM) in the Illinois Basin, today announced several recent and forthcoming developments at its Northern Illinois Basin Project.

The Company stated that it has drilled nine of 10 planned multi-seam vertical development wells at the Project, with more than 65 percent of the gas-gathering flow lines already having been installed. Fracing and completion of the wells is scheduled to start the middle of July and wells will be put on pump to commence the dewatering process.

President and Chief Executive Officer James G. Azlein commented, "We have commenced the permitting process for our water disposal well, which we expect to have drilled and operational by the time our initial wells are fractured and completed. The compressor has been ordered and discussions are underway with several pipeline operators, all of whom have excess take-away capacity, as we seek to secure the best deal possible for delivering our CBM production to market.

"We expect to see gas begin flowing from these Northern Illinois Basin development wells within the next 60 days, during which time we will be flaring the gas and collecting valuable production data. The data we obtain during this period will assist us in determining when and to which pipeline we will being selling gas," Azlein added.

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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.

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 to fund our operating plan through April 30, 2007, (b) our inability to retain our acreage rights at our projects at the expiration of our lease agreements, due to insufficient CBM production or 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.

News releases and other information on the company are available on the Internet at: http://www.bpi-energy.com