DALLAS -- Southridge Enterprises Inc. has executed an "Option to Purchase Agreement" for an ethanol plant and related equipment in Saskatchewan, Canada.

The closing of the transaction is subject to the company finishing its due diligence by Dec. 11, 2006. Once the agreement has been finalized, the plant and equipment will be transported and re-assembled at the company's newly acquired production facility in Quitman County, Miss.

At full capacity, the successful acquisition of the plant and related equipment will enable the company to produce 10 million gallons per year (MMGY) of denatured ethanol. Southridge plans to have this ethanol plant fully operational and producing by June 15, 2007.

Southridge Enterprises is a renewable energy company with a mission to become the ethanol producer of choice in the Southeastern region of the United States. The company is focusing its efforts in an area which offers abundant supplies of corn, superior transportation infrastructure and expedited permitting processes. The company is actively acquiring and developing ethanol production facilities with a planned capacity of 60 million gallons per year and anticipates start-up of the first phase of these operations in 2007. Southridge Enterprises is headquartered in Dallas.

SOURCE: Southridge Enterprises Inc. via Market Wire.