Colusa Biomass Energy Commences Trading Publicly.

COLUSA, Calif. -- Colusa Biomass Energy, Inc. (Pink Sheets:CBGY) (the "Company") a bio fuels company will refine waste rice hulls and waste rice straw into usable fuel ethanol, recently began trading on Pink Sheets. Commenting on this recent development, Tom Bowers, CEO of CBGY stated, "We are delighted to see that all of our efforts in the field of waste biomass conversion to energy will finally be seen by the investing public. Years ago, we discovered a bountiful supply of energy growing in the sunshine all year round. We noticed that a lot of waste was created when our agricultural producers grew our daily foods. Take rice as an example -- when the California rice farmer grows an acre of rice he gets about 8000 pounds of rice and 5000 pounds of rice straw. Most of the rice straw has no commercial value. Worthless waste rice straw is not the case with CBGY. We have the proprietary technology to make an acre of waste rice straw into 313 gallons of fuel ethanol and 900 pounds of high quality silica for industry. And, our process of waste biomass conversion goes through our proprietary, patented process. CBGY has the ability to generate roughly $890 of revenue from an acre of waste rice straw -- with 3,600,000 acres of rice being grown in the United States, let alone China, India and other countries, we see tremendous growth potential for CBGY in this niche arena of waste conversion." Bowers continued, "Our process has been successful in trial runs in California, and we will be displaying it again in August, 2005. To our knowledge, no other company has this specific type of technology, and we are excited about our prospects for growth."

About CBGY:

Colusa Biomass Energy Corporation has a US Patent to make ethanol from waste biomass (such as what's left over after the rice, wheat and corn is harvested). CBGY was founded in 2001, incorporated in Nevada. CBGY's US Patent #5,735,916 covers the process for converting biomass to ethanol. CBGY's preferred biomass is rice straw produced in the Sacramento Valley. The Sacramento Valley runs from Sacramento north to Mount Shasta, lies between the Coast Range and the Sierra Nevada mountains and produces about 18% of America's rice. Louisiana, Texas, Arkansas, Missouri also produce large quantities of rice.

The annual California planting for rice production approximates 600,000 acres. Each acre of rice produces about 2 1/4 tons of rice straw. Of the 1.35 million tons of California rice straw produced approximately 3% to 4% has commercial applications. The balance is either reintroduced to the soil or the fields, flooded a second time at extra expense to the farmer. This water could otherwise be available to a water starved California. Legislation is in place that prohibits the farmer from burning the waste rice straw as was done in the past. It is important to note that CBGY can process rice hulls (in volume about 1/4 that of rice straw) as well as any other form or biomass (i.e., wood chips, forest slash, orchard trimmings, grasses and hays) with no refinery modification.

Certain statements in this press release constitute "forward-looking statements" relating to Colusa Biomass Energy, Inc. and its subsidiaries (the "Company") within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding future events, our financial performance and operating results, our business strategy and our financing plans are forward-looking statements. In some cases, you can identify forward-looking statement by terminology, such as "may", "will", "would", "should", "could", "expect", "intend", "plan", "anticipate", "believe", "estimate", "predict", "potential" or "continue", the negative of such terms or other comparable terminology. These statements are only predictions. Known and unknown risks, uncertainties and other factors could cause actual results to differ materially from those contemplated by the statements. In evaluating these statements, you should specifically consider various factors that may cause our actual results to differ materially from any forward-looking statements.