D1 Oils plc (D1), the UK-based global producer of biodiesel, today announces the completion of the sale and leaseback financing package for its D1 20 refinery assets that was referred to in D1’s interim results on 27 September 2006. The total value of the facility, provided by Allied Irish Bank and Investec, is £5.1m. The term of the facility is five years and the effective interest rate is 8.0%.

The finance package includes the sale and leaseback of the first of the four 8,000 tonne D1 20 units, now in operation at the Company’s Teesside site, for a value of £850,000 plus VAT per unit. The facility will also finance a further two of the Company’s new upscaled 10,000 tonne D1 20 units once completed. The agreement will allow for an initial cash release of 35%, with further annual cash releases scheduled over the five year term.

D1 currently has 32,000 tonnes of operating refining capacity in Teesside, and plans to expand UK production capacity to 320,000 tonnes by the end of 2007 and 420,000 tonnes by the end of 2008. This expansion will include the deployment of six new 10,000 tonne D1 20 units at the Teesside site.

Elliott Mannis, Chief Executive Officer of D1 Oils said:

“This finance package demonstrates the growing confidence in both D1’s business model and in our refinery technology in particular. Lenders are willing to finance both our current working refineries and our upscaled models to be deployed in the New Year. By enabling us to finance further unit deployments, this agreement marks a significant step in building our biodiesel refining business in the UK and creating capacity to meet future demand.”