Melbourne, Florida — July 12, 2011—PetroAlgae Inc. (OTCPK: PALG), a leading provider of licensable commercial micro-crop technology globally, today announced that it has entered into an agreement with CRI Catalyst Company LP (CRI) to use IH2 Technology for the conversion of PetroAlgae’s micro-crop residues into renewable fuels. Successful combination of the two technologies results in an integrated system that produces cellulosic gasoline, diesel, and jet hydrocarbon fuels and/or premium blend stocks that are virtually indistinguishable from petroleum-based fuels.

CRI is a leading provider of catalyst and environmental systems technology to the global petrochemical producing community. CRI has obtained exclusive global sublicensing rights for IH2 technology from the Gas Technology Institute (GTI) where the technology was developed. PetroAlgae’s micro-crop technology employs indigenous, aquatic micro-organisms suitable to local climates and is designed to enable its licensees to produce a high-value protein product and residual biomass which may be converted to cellulosic hydrocarbon fuels and/or blend stocks via the IH2 technology at commercial scale.

This agreement is a direct result of successful tests converting PetroAlgae’s micro-crop residue into cellulosic hydrocarbon fuels and/or blend stocks using the IH2 technology provided by CRI. The two firms have agreed to continue to optimise the combined capability of their respective biomass production and conversion processes. Commercial collaboration has already begun and is expected to result in a joint marketing agreement between the two firms in which PetroAlgae and its licensees will hold exclusive rights to IH2 technology for conversion of lemna biomass.

“We see great promise in this collaboration with CRI,” said Anthony Tiarks, CEO of PetroAlgae. “Based on the joint work so far, we believe our mutual solutions are ready to work together in an integrated conversion process for the direct conversion of biomass to green fuels at commercial scale. It is all very exciting, our licensees will soon have the option to produce renewable transportation fuels in collaboration with a refinery or the PetroAlgae micro-crop farm as a self-contained renewable fuel production facility.”

About PetroAlgae

PetroAlgae Inc. (OTCPK: PALG), based in Melbourne, Florida, is a renewable energy company that licenses and deploys the leading biomass production platform to address existing and growing unmet needs in the global energy and agriculture markets. The company’s technology enables the growing and harvesting of a wide variety of aquatic micro-crops suitable to local climates in open-pond bioreactors. For more information about PetroAlgae, please visit our website at www.petroalgae.com