BPG Bpi Energy Holdings,

BPI Energy Holdings, Inc. (AMEX: BPG), an independent energy company engaged in the exploration, production and commercial sale of coalbed methane (CBM) in the Illinois Basin, today announced financial and operating results for the fiscal fourth-quarter and full-year periods ended July 31, 2008 and provided a general financial update. During the fiscal fourth quarter, net gas sales revenues were $741,000, versus $333,000 reported in last year�s comparable period. Net sales volume was 64.3 million cubic feet (MMcf) versus 47.9 MMcf in the fiscal 2007 fourth quarter. For the full year, net gas sales revenues were $2.0 million versus the $1.2 million generated from net gas sales in fiscal 2007. Net sales volume for the 12-month period was 250.0 MMcf versus 185.3 MMcf last year. The average gas price per thousand cubic feet (Mcf) for the quarter increased to $11.52 from $6.86 a year ago. BPI received an average of $8.14 per Mcf for the full year, versus $6.50 per Mcf in fiscal 2007. Sales and average gas prices exclude the effects of commodity derivatives contracts as the Company includes gains and losses from such contracts in other income and expense. The Company has entered into a fixed-price swap of $10.26 per MMBtu for the notional amount of 20,000 MMBtu per month on gas sales during the period July 1, 2008 through July 2010. General and administrative expenses declined sharply from previous levels, falling 54% for the quarter and 32% for the fiscal year. The declines for both periods reflected sharply decreased salaries and benefits. The Company reported a net loss of $8.7 million, or $0.12 per share, for the quarter, compared with the net loss of $14.0 million, or $0.20 per share, in last year�s final quarter. The net loss for the full year was $14.8 million, or $0.21 per share, versus last year�s net loss of $20.6 million, or $0.30 per share. The net losses for each period were largely the result of ceiling write-downs of gas properties, which totaled $7.5 million and $11.7 million, recorded in the respective fiscal 2008 and 2007 fourth quarters. Partially offsetting this was a non-cash gain of $610,000 in the fiscal 2008 fourth quarter ($265,000 for the fiscal year) related to change in value of derivative contracts. Operating data for the fiscal 2008 fourth quarter and full year ended July 31, 2008, are summarized below: � Selected Financial and Operating Data � Three Months Ended 7/31/2008 � 7/31/2007 � Net Gas Sales (Mcf) 64,339 47,904 � Average Selling Price ($/Mcf), net $11.52 $6.86 � 12 Months Ended 7/31/2008 7/31/2007 � Net Gas Sales (Mcf) 249,550 185,305 � Average Selling Price ($/Mcf), net $8.14 $6.50 � At 7/31/2008 At 7/31/2007 � Cumulative Wells Drilled 206 170 � Wells Producing and Selling Gas1 116 91 � Proved Reserves (MMcf) 18,286 16,274 � Acreage in Production