GreenShift and YA Global Enter into Restructuring Agreements

GreenShift Corporation (OTC Bulletin Board: GERS) today announced that it has executed agreements (the “Agreements”) with its senior lender, YA Global Investments, L.P. (“YA Global”), and majority shareholder, Viridis Capital, LLC (“Viridis”), to restructure about $42,700,000 in debt issued by GreenShift and its subsidiaries to YA Global (the “Senior Loans”).

The restructured Senior Loans shall mature on March 31, 2011 and shall bear interest at the annual rate of 6%, a reduction from the average annual rate of 12% previously due under the Senior Loans. The Senior Loans are payable in cash or GreenShift common stock at the rate of $800,000 per quarter for the four calendar quarters commencing January 1, 2010, and the sum of $1,200,000 per quarter commencing January 1, 2011. Additional information pertaining to the terms of the Agreements will be made available online today at www.greenshift.com in GreenShift’s December 9, 2009 Current Report on Form 8K.

“We initially capitalized our business by issuing convertible debt structured in ways that allowed us to conserve cash while we developed and refined our early-stage clean technologies,” said Kevin Kreisler, GreenShift’s chairman and chief executive officer. “Our long-term plan has been to build value with technology and then to leverage that value to recapitalize our early-stage investment while driving the continued growth of our business.”

Use of Proceeds

GreenShift used the majority of the funds provided by YA Global in the development and commercialization of its patented and patent-pending corn oil extraction and related technologies. GreenShift was recently awarded two patents for its corn oil extraction technologies and expects to receive additional patents on other pending applications for corn oil extraction. GreenShift’s technologies have already delivered substantial value to ethanol producers – an estimated 20% of the U.S. ethanol industry is using GreenShift’s patented and patent-pending extraction technologies today without a license, and GreenShift believes that the majority of the ethanol industry will license GreenShift technology over the coming years given the significant benefits to ethanol producers.

Kreisler added: “Being first at anything can be expensive. This was certainly the case for GreenShift, but we were able to develop and protect a strong intellectual property position with a portfolio of technology that was devised and is proven to deliver powerful competitive advantages to the renewable fuels industry – increased sustainability, reduced cost, reduced energy, and reduced carbon, all by integrating our technologies into the industry’s existing production assets.”

GreenShift’s extraction technologies increase biofuel yields per bushel of corn by 7% while reducing the energy and greenhouse gas (GHG) intensity of corn ethanol production by more than 21% and 29%, respectively. These benefits correspond to increased ethanol producer income of about $0.08 to $0.12 per gallon of ethanol produced at current market prices, and can be realized for less than 10% of the capital cost of the host ethanol plant. Further, the reduction in carbon emissions from use of GreenShift’s corn oil extraction technologies can be expected to benefit ethanol producers under the pending new EPA regulations.

Moving Forward

“Our chief goal for 2010 is to support the integration of our patented extraction technologies into as much of the U.S. ethanol fleet as possible,” said Kreisler. “This will be accomplished with a combination of licensing, prosecution of unlicensed use of our extraction technologies, and strategic partnerships with providers that have the capital resources needed to build new extraction facilities. We plan to provide important additional updates in this regard over the next 30-60 days, but the restructuring of the Senior Loans was and is a critical part of our plans. The reduced interest rate of the Senior Loans will allow us to save about $3 million per year and to raise additional capital to grow our business. YA Global has always been a solid partner and we are thankful to have their continued support as we use our technologies to build value for our shareholders and clients.”

About GreenShift Corporation

GreenShift Corporation (OTC Bulletin Board: GERS) develops and commercializes clean technologies designed to integrate into and leverage established production infrastructure and distribution channels to address the financial and environmental needs of GreenShift’s clients by decreasing raw material needs, facilitating co-product reuse, and reducing the generation of wastes and emissions.

At full participation by the ethanol industry, GreenShift’s commercially-available technologies can give way to disruptive gains by sustainably producing globally-meaningful quantities of new carbon-neutral liquid fuels for distribution through existing supply chains.

GreenShift is focused today on supporting integration of its patented and patent-pending corn oil extraction technologies into as much of the ethanol fleet as possible. GreenShift also maintains its strong commitment to continued innovation and has many additional patents pending for its Backend Fractionation portfolio of strategically-compatible cleantech designed to continue driving the corn ethanol industry into increased sustainability and global competitiveness.

Additional information on GreenShift and its technologies is available online at www.greenshift.com.   

Safe Harbor Statement

This press release contains statements that may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of GreenShift Corporation and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully, and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.