BPI Energy Appoints Craddock to Board.

CLEVELAND -- 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 the election of Chief Operating Officer James E. Craddock to its Board of Directors, effective January 30, 2007, bringing the total number of Board members to six.

Craddock joined BPI Energy in May 2006 as senior vice president. Immediately prior to joining BPI, he served as chief engineer of Burlington Resources (acquired by ConocoPhillips on March 31, 2006) where he was responsible for reserve estimation, corporate operations, recruitment and development of the engineering staff and growth of a technical center of excellence. At Burlington, as head of Reservoir Engineering, and later as engineering manager, he was responsible for leading the technical team that grew the Fruitland CBM Project, located in the San Juan Basin of Colorado and New Mexico, to over 400 MMcf per day. During the play's peak level of activity, this required drilling up to 300 new CBM wells, conducting up to 100 recompletions and participating in 100 non-operated wells each year. In his current capacity, Craddock oversees all operational activities for BPI Energy including engineering, geology and land management activities. In particular, he is integrally involved in planning and managing all aspects of the company's CBM exploration, drilling and production activities. He began his career in 1981 with Superior Oil (later Mobil) upon graduating from Texas A&M University with a Bachelor of Science in Mechanical Engineering.

James G. Azlein, president and CEO, said: "We are very pleased to have Jim assume a greater leadership role in developing and guiding the growth of BPI. His CBM experience, management acumen, planning expertise and connections to top industry experts will enable us to intelligently develop our significant acreage position to achieve the greatest economic returns. It is essential for a fast-growing company like BPI to have creative and knowledgeable talent to grow profitably, and Jim is the ideal person to serve in this role."

Craddock added: "In my career, I have been very fortunate to have served on some very capable teams in developing a variety of CBM plays, each with different characteristics requiring different technology and techniques. BPI has recruited an exceptional technical group with the requisite skills and experience to analyze the company's CBM assets and then apply the appropriate solutions to maximize results."

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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 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 to fund our operations through July 31, 2007, or our operations after that date, (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.