Update on Progress with Fundraising

24 December 2010

GEM BIOFUELS PLC

("GEM" or the "Company")

Fund Raising Progress

GEM Biofuels Plc (AIM: GBF), the developing energy crop plantation business, wishes to update shareholders on its progress in securing additional funding for the business. On 5 November 2010, GBF announced that it was seeking to raise up to £2m of new funding by 31 December 2010 in order to strengthen the Company's financial position and to enable it to capitalise fully on its position in the market and continue as a going concern. Although new funding will not be in place by the end of this year, the Company is in detailed discussions with several parties that, if successful, will provide for the Company's future funding requirements. No further details can be provided at this stage, but the Company expects to be in a position to update the market more fully in January once discussions have reached a more advanced stage.

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