PetroSun, Incorporated announced today that the Board of Directors has met to review company operations and projects proposed for the second half of 2007. The Board approved the following items for implementation within the petroleum and biofuel divisions of the Company.

Oil and Gas

The Company will focus its exploration program on Arizona, Western Australia and Queensland during the next six months. The primary exploration targets will be the Holbrook Basin of Arizona, Canning Basin EP 417 and EP 442 of Western Australia and the ATP 626P Stitch of Queensland, Australia.

The oilfield service division will exercise its options on drilling rigs for Arizona and Australia that will allow the Company to drill at a favorable daily rate and minimize mobilization expenses in remote areas. The Company intends to complete and expand its holdings in the pipe and supply sector for its Arizona and Australian operations during this period.

Biofuel

The Company has scheduled an algae-to-biodiesel demonstration in Alabama during August 2007. The purpose of this event will be to demonstrate to the alternative energy and transportation fuel industries that algae-to-biodiesel is a viable commercial option to supply biodiesel to the marketplace. PetroSun intends to establish its initial commercial scale algae-to-biodiesel plants in Alabama, Arizona, California and Australia.

The recent announcement of the Alabama demonstration has generated tremendous interest in the algal oil product and the Company has initiated discussions with several existing and planned biofuel producers regarding potential sales and joint venture agreements. These biofuel producers are experiencing increased costs and supply shortages from soy, corn and palm oil feedstock. The algal oil may prove in the near future to be a sustainable feedstock that is not controlled by the commodities market.

The Company is moving forward with its planned transaction with Icon Energy to form PetroSun BioFuels as a publicly traded alternative fuels company based in Australia. The Australian entity will produce and market algae-derived biofuels in Australasia and will expand into other regions based on its production capabilities and market demand. PetroSun will maintain a majority interest in PetroSun BioFuels.

Alternative Energy Technology

The Company intends to commence the testing of the ElectraTherm Gas Pressure Reduction Generator in Louisiana as soon as a unit is available for installation. The GPRG utilizes the pressure from gas wells and pipelines to produce energy free electricity that is marketed to the grid. PetroSun holds a twenty percent preferred equity interest in ElectraTherm and the exclusive worldwide rights to market its renewable energy products to the oil and gas industry.

About PetroSun

PetroSun’s current oil and gas operations are concentrated in the Ark-La-Tex region with plans to expand into New Mexico, Arizona and Australia in 2007. Algae BioFuels, a wholly owned subsidiary of PetroSun, is an emerging producer of biodiesel derived from the cultivation of algae. PetroSun is headquartered in Phoenix, Arizona with field offices in Shreveport, Louisiana and Opelika, Alabama. For more information about PetroSun visit the company’s website at http://www.petrosuninc.com.

Except historical matter contained herein, matters discussed in this news release are forward-looking statements and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risks and uncertainties, which may affect the Company’s business and prospects and cause actual results to differ materially from these forward-looking statements.

Contact:

Contact:
PetroSun, Inc.
Investor Relations
Email Contact
(602)-487-6486

Source: PetroSun, Inc.