American Biofuels Inc C.ABS.H

NEWS -Transamerican energy $1.5 million

[dukeman]

TransAmerican Energy $1.5-million convertible debenture 2007-12-04 16:37 ET - Private Placement - Debenture The TSX Venture Exchange has accepted for filing documentation with respect to a non-brokered private placement announced Nov. 8, 2007. Convertible debenture: $1.5-million Conversion price: Convertible into units consisting of one common share at 15 cents of principal outstanding in the first two years and at 16.5 cents for the final six months Maturity date: 30 months from closing Interest rate: 10 per cent per year, payable monthly, plus a redemption rate surcharge of 12.5 per cent on the principal amount being redeemed In addition, commencing four months from the closing, the issuer shall commence, on a monthly basis, to redeem the debenture, the interest and premium, and if the issuer is unable to service the debt, the issuer shall have the right to pay the indebtedness (including any interest and premium) in shares on seven days notice to the placee on the basis of the then-current market price (minimum of five cents) of the company's shares, provided the issuer may not redeem any portion of the debenture if its shares are trading at 120 per cent of the then-applicable conversion price or the conversion would result in the lender owning greater than 9.99 per cent of the voting shares of the company following such conversion.