TAMPA, FL–(Marketwire – September 8, 2009) – Preachers Coffee, Inc. (PINKSHEETS: PRCF) (PINKSHEETS: PCIO) and MODERN ENERGY CORP. (PINKSHEETS: MDRG) and (FRANKFURT: ME2C) announced the signing of a Joint Venture Agreement on the Technical Management and Operating Contract of a 36,103 Acres of Agricultural and Forest Land which is under a Community-Based Forest Management Agreement (CBFMA) of the Government of the Philippines, in partnership with the Manobo Indigenous Community Cooperative on Mindanao island in the Philippines.
The Joint Venture Agreement has a 25 Year CBFMA Contract and an indefinite extension since it was appropriated in an Ancestral Domain Land Management for the Manobo Indigenous Communities. The Manobo Indigenous Communities has the Ancestral Domain Rights to the land and their Community Cooperative was for purposes of Agricultural and Forest Management to improve their living standard. The Joint Venture Technical Management and Operating Contract for the 36,103 acres will allow financial assistance and technical management to be provided by Preachers Coffee, Inc. and Modern Energy Corp.
Rubber trees for forest management, in addition to Coffee and Jatropha plants, are being prepared for planting in the agricultural areas.
The Jatropha plant is valued as a very cost effective feedstock for the production of oil used for producing Bio-Diesel. But unlike other biodiesel crops, Jatropha can be grown almost anywhere — from arid land to more fertile farms like in the Phillipines. It doesn’t need much water or fertilizer, although the yield rises as more water is available, like in Mindanao, Phillipines. And because the Jatropha is not edible, environmentalists and policy makers don’t have to worry about whether Jatropha diverts resources away from crops that could be used to feed people. By some estimates, the per-barrel cost to produce Biofuel using Jatropha — about $43 — is about half that of corn and roughly one-third that of rapeseed, two other leading materials for alternative energy. At those prices, Jatropha Biodiesel would be competitive with fuel made from crude oil without significant government subsidies.
Recently, an airline had a test flight using a 50 jet fuel/50jatropha Biofuel mix. When Jatropha seeds are crushed, the resulting Jatropha oil can be processed to produce a high-quality biodiesel that can be used in a standard diesel car, while the residue, called “press cake,” can also be processed and used as biomass feedstock to power electricity plants or used as fertilizer (it contains nitrogen, phosphorous and potassium).
A significant differentiator of Jatropha versus other Bio-Fuel Feedstocks is that Jatropha absorbs carbon-dioxide while they are growing, effectively canceling out the carbon dioxide they release when they burn. The plant may yield more than four times as much fuel per hectare of soybean, and more than ten times that of corn. A hectare of Jatropha has been claimed to produce 1,892 litrers of fuel. Once the Jatropha seeds are dried out and crushed, these poisonous seeds yield oil which can be burned in almost any diesel engine — with no modification. Recent studies show that Jatropha seed produces between 30 and 40 percent of its mass in oil.
Nestor C. Buenaflor, Chairman and CEO of Preachers Coffee, Inc. (PINKSHEETS: PRCF) and its subsidiary (PINKSHEETS: PCIO), said that, “This Joint Venture Agreement with Modern Energy Corp. will provide an improvement for the Manobo Tribal Communities on Mindanao, Philippines. And the positive contribution represented by the cultivation of Jatropha plants introduced as one of the cash crops for the production of Bio-Diesel offers a stable and sustainable future for our companies and the Manobo Tribal Communities. We are not only cleaning the air because of responsible forest management and Bio-
Diesel from Jatropha, but we also improve the lives of poor people in the remote areas of the world by providing them with job opportunities and income.”
Chairman of Modern Energy, John Winnick, stated, “The Preachers Coffee, Inc. joint venture with 36,103 acres of prime agricultural land in the Philippines is just one example of the Global Vision of Green Energy from the Jatropha plant and cash crops such as coffee and rubber trees for rubber, to further expand Modern Energy’s footprint to the nearly 1,000,000 acres that our company currently controls through our subsidiary, Sultan Saud Resource Development Corporation (SSRDC). Modern Energy is pursuing a change in business plan to focus on providing Bio-Diesel feedstock for the Asian Pacific Basin and developing the region’s economies from a Third World nation to a world class provider of alternative clean energy. This green energy initiative will provide jobs and opportunity for growth on Mindanao, the eighth largest island population on earth, and showcase the best of environmental capitalism.”
The above statements in regards to Preachers Coffee, Inc. and Modern Energy Corp., which are not purely historical and factual, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Preachers’ and Modern Energy’s beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and are based on information available to the parties as of such date. It is important to note that the actual outcome and the actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties, such as technological, legislative, corporate, financial and marketplace changes.