HEMP REFINER EXPECTED TO PROVIDE NEW INCOME FOR 200 FARMERS

After nearly 10 years of research and development in industrial hemp,
Stonehedge Bio- Resources Inc. of Sterling is ready to lead the way in
commercializing hemp in North America.

Building on a business case developed through the Eastern Lake Ontario
Regional Innovation Network (ELORIN), Stonehedge is now set to
establish a bioprocessing facility in Eastern Ontario to serve North
American markets. Some of the products and co-products are aimed at
the automotive, energy, agriculture, construction material, and pulp
and paper markets. This fibre separation facility (decortication
plant) is expected to provide new farm income for about 200 farmers,
putting more than 12,000 acres into cultivation, said John Baker,
president and founder of Stonehedge.

They secured $2 million in funding from Great Britain and met with the
British Consulate on Wednesday, Northumberland County chief
administrative officer Bill Pyatt told County council Wednesday afternoon.

"Hopefully they'll be able to obtain provincial and federal dollars as
well," Mr. Pyatt said. "This industry will supply all of North America."

Starting this spring, Stonehedge expects to build a new bio-refining
facility in Eastern Ontario that will employ up to 27 people by 2011.
The company expects to produce more than $17 million per year in
renewable hemp fibre, wood-like chips, and pellets, as well as matting
and seed products.

"Ontario is proud to support innovative companies that are turning
good ideas into good jobs," Research and Innovation Minister John
Wilkinson said. "Today's investment is a clear sign that our
entrepreneurs and researchers are on the right track to developing and
marketing globally competitive green technologies that will create
good jobs for Ontario families.

"Eastern Ontario has carved out a new economic sector that will
support our communities in the 21st century," Northumberland-Quinte
West MPP Lou Rinaldi said. "From research to high-technology
bioprocessing to farming, we're very excited at the possibilities this
project has to offer."