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OriginOil Announces Its First Customer

Industry leader MBD Energy intends to purchase algae feeding and extraction systems

Los Angeles, CA May 10, 2010 – OriginOil, Inc. (OOIL), the developer of a breakthrough technology to transform algae, the most promising source of renewable oil, into a true competitor to petroleum, today announced that industry leader MBD Energy Limited has become the company’s first algae-producing customer. Anglo American, one of the world’s largest mining companies, is a cornerstone investor in MBD Energy.

The parties recently signed a Memorandum of Understanding on a multi-phase commercialization program under which OriginOil will supply MBD Energy, an Australia-based company, with its Quantum Fracturing™ and Single-Step Extraction™ systems. Andrew Lawson, Managing Director of MBD Energy, said: “We are delighted to become OriginOil’s first major customer and we look forward to working with the OriginOil team to forge a comprehensive commercial relationship with game-changing potential in the exciting third-generation biofuels space.”

Three of Australia’s largest coal fired power generators have committed to building test facilities adjacent to their power stations using MBD’s proprietary growth system, the Algae Synthesizer, where smoke-stack CO2 emissions are captured and used to grow oil-rich algae in solar bioreactors. This process effectively achieves BIO-CCS (Carbon Capture and Storage). In the full production systems, OriginOil’s technology will be integrated into the MBD system to enhance algae growth and perform oil extraction.

In the initial phase, OriginOil will equip MBD Energy’s research and development facility at James Cook University in Queensland, Australia, where testing will take place. The two companies agreed that, subject to the success of the initial test phase, MBD will purchase significantly larger feeding and OriginOil extraction units to serve facilities planned for its three Algal Synthesizer power station projects in Australia: Tarong Energy (Queensland), Loy Yang A (Victoria) and Eraring Energy (New South Wales).

Riggs Eckelberry, OriginOil CEO said: “We have been looking for a partner with the resources and scaling capabilities to rapidly industrialize algae production with a focus on the long-term development of our industry. We are delighted to have found this partner in MBD Energy.” Eckelberry added, “Many thanks go to MBD’s Larry Sirmans and Enrico Bombardieri, and our own Dr. Pattarkine, for their vision and persistence in making this partnership possible.”

Queensland Premier Anna Bligh officially opened MBD’s expanded R&D facility in November 2009. Premier Bligh said: “The revolutionary algal carbon capture and storage (BIO-CCS) technology is already proving successful in trials and will soon be rolled out at three coal fired power stations, including Tarong Power Station near Kingaroy. This technology has the potential to revolutionize carbon capture in Queensland and around the world.” She added: “As our state continues to grow and coal remains a key export, it is essential that we devise new ways to manage the impact of that growth on our environment.”

The Queensland Premier also announced that MBD would shortly commence construction of a one-hectare pilot plant at South Eastern Queensland’s Tarong Power Station. The trial aims to capture 700 tonnes of carbon dioxide annually and, if successful, could expand over the next 5 to 10 years to consume more than half of Tarong’s problem flue-gas emissions.

MBD’s Andrew Lawson said that each of the three current MBD power station projects has the potential to then grow to 80-hectare commercial plants, each capable of producing 11 million liters of oil for plastics and transport fuel, and 25,000 tonnes of drought-proof animal feed annually. He said that the projects will eventually consume more than half of each of the power station’s problem flue-gas emissions.

OriginOil’s Quantum Fracturing System breaks down nutrients such as CO2 into micro-particles that stay suspended in water longer, allowing algae to feed more efficiently. The Single-Step Extraction system is the first commercial “wet” extraction system, able to separate algae oil from its biomass without costly and energy-intensive dewatering operations.

About MBD Energy Limited (web address: www.mbdenergy.com)

MBD is an Australian based public, unlisted technology company. One of the world's largest mining companies, Anglo American, became a cornerstone investor in MBD in 2009 and Anglo Coal's Global CEO, Seamus French, has recently joined as a non-executive director of MBD Energy. The MBD Energy Board is chaired by former BHP Chairman, Jerry Ellis. MBD has a joint research and development facility located at James Cook University (JCU), Townsville, Queensland. MBD Energy and its JCU team are regarded as international leaders in the use of captured flue-gases as feedstock to produce algal biomass for Bio-CCS. In addition to the project at Tarong Power Station, MBD Energy currently has two similar projects underway with Loy Yang Power in Victoria and Eraring Energy in New South Wales. MBD Energy is a founding member of the Bio CCS program. The program is made up of a number of regional projects with each targeting 50 million tonnes of greenhouse gas sequestration per year by 2020.

Safe Harbor Statement:

Matters discussed in this update contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this update, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.


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