BUERF revoked:

http://www.sec.gov/litigation/admin/2012/34-67236.pdf

BUERF SEC Suspension:

http://www.sec.gov/litigation/suspensions/2012/34-66295.pdf

Admin Proceeding:

http://www.sec.gov/litigation/admin/2012/34-66294.pdf

There were 15,142,836 ordinary shares outstanding as at June 30, 2007.

Year Ended June 30, 2007 Compared to Year Ended June 30, 2006

Our Company sold 1.4 million pounds of cobalt for $28.3 million in the fiscal year 2007, compared to 1.6 million pounds of cobalt for $18.1 million in the fiscal year 2006. The average price realized was $20.46 per pound in the fiscal year 2007, compared to $11.27 per pound in the fiscal year 2006.

The cost of sales was $16.5 million for the fiscal years 2007 and 2006, respectively. The cost of sales included depreciation charges of $5.0 million and $5.8 million and the rehabilitation expense was $0.2 million and $0.2 million in fiscal years 2007 and 2006, respectively. The gross profit was $11.7 million and $1.6 million for the fiscal years 2007 and 2006, respectively. The increase in gross profit was due to an increase in the price of cobalt.

The general and administrative expenses were $3.6 million and $3.3 million for the fiscal years 2007 and 2006, respectively. The increase of approximately 9% is primarily due to an increase in business activities. The operating income was $8.1 million for the fiscal year 2007, compared to operating loss of $1.6 million in the same period in 2006.

We recognized an equity loss of $nil and $1.9 million for the fiscal years 2007 and 2006, respectively, representing our proportionate share in the operating loss of our equity method investee. In December 2006, we sold all of our interest in our equity method investee and did not have any equity income or loss in the current fiscal year. We recognized an accounting gain of $1.3 million and $nil on the sale of the equity method investee in fiscal years 2007 and 2006, respectively.

Net income was $10.4 million (or basic earnings per share of $0.69) for the fiscal year 2007, compared to a net loss of $3.3 million (or basic loss per share of $0.22) for the fiscal year 2006.

Blue Earth Refineries Inc. Announces Cash Distribution
HONG KONG, Dec. 21 /CNW/ -- Blue Earth Refineries Inc. ("Blue Earth") (Pink Sheets: BUERF) announced today that its Board of Directors (the "Board") has approved a payment of a special cash distribution in the amount of US $1.04 per share. The record date for shareholders entitled to receive the payment will be December 31, 2007. The payment date will be January 3, 2008. The distribution is a return of capital.

To partially finance the costs of the distribution and the unwinding of a prior forward sale, Blue Earth will use its working capital and has entered into a syndicated unpriced forward derivative contract, which allows for an initial payment of approximately US $23 million and further payments depending upon the price of cobalt.

The derivative contract will substantially limit Blue Earth from making further cash distributions in the near future unless prices for cobalt stay constant, the existing production levels remain the same and until the delivery of the cobalt has occurred to fulfill the forward derivative obligation.

With the extreme volatility and uncertainty of the market price of cobalt, the inherent production and delivery risks, the Board views this transaction as a way to help control its uncertain future and create value for its shareholders as of today.

While forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgement regarding the direction of our business, actual results will almost always vary, sometimes significantly, from any estimates, predictions, projections, assumptions or other future performance suggested herein.

North American Corporate Relations Contact T: (604) 683 5767
F: (604) 683 3205 E: rrandall@bmgmt.com



Source: Canada NewsWire (December 21, 2007 - 5:31 PM EST)

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