Outlook Resources Inc. (TSX VENTURE:OLR) has reached an agreement to acquire 75% of the outstanding common shares of Prairie Bio Energy Inc., Canada. The transaction agreed this week (28th January) includes an exchange of Outlook Resources shares for Prairie Bio Energy shares and a combination of cash and notes payable. The transaction is subject to the completion of due diligence, TSX Venture Exchange approval and to Outlook raising a minimum of $2 million dollars.

Prairie Bio Energy has developed a proprietary densification process for the production of biomass fuel cubes. The company was established in 2004 and set up a 100 ton per day biomass fuel cubing line that was operated from Prairie Bio Energy's 20,000 square foot research and development facility. Patent applications have been filed in Canada and the U.S. for the Prairie Bio Energy densification process.

Stephane Gauthier, President and Eugene Gala, Executive Vice President & COO will continue to lead Prairie Bio Energy as the company moves forward with Outlook Resources on the development of a commercial scale, 400 ton per day biomass cubing production facility. All of the current employees will be retained and the operations will be expanded over the next six months to facilitate additional business currently being finalized. Outlook is currently negotiating a long term lease on suitable premises for the proposed production facility.

John Bottomley, President and Chief Executive Officer of Outlook commented, "We are most pleased to have reached this agreement with the founders and shareholders of Prairie Bio Energy today. The business is a great fit with Outlook Resources and supports our strategy of renewable energy being the cornerstone of our business model. We are very confident that the combination of Prairie Bio Energy's biomass fuel cube products along with Outlook Resources Bio-Economy Park platform will drive significant synergies and new business opportunities as we grow together."