BlueFire Renewables Completes Banner Year; Sets Sights on Even More Significant Milestones for 2011

Dear Fellow Shareholders:

First, I would like to take this opportunity to wish you and yours a very Happy New Year.

2010 has been an exciting year. This year end review is to provide you with an update on our progress and perspective to position BlueFire as a successful, sustainable and dynamic cellulose-to-biofuels company..

BlueFire rebranded itself as BlueFire Renewables, Inc. in order to more clearly illustrate the company’s vast capabilities in renewable energy. Through its internally-designed and third-party–developed back-end technologies, BlueFire can produce a vast array of other Biofuels, including Biodiesel, BioJet Fuel, and other Drop-in Direct fuels..  BlueFire’s technology proved this in the mid 1990’s when it was used to demonstrate production of diesel additives and volumetric extenders that dramatically reduce particulate and other emissions from diesel and other heavy oil products. BlueFire intends to take advantage of all the available, viable products that were tested and deploy them in the marketplace once the first plant is under construction and the markets mature. As such, the name change and rebranding as a renewable energy company more clearly represents the many applications for which BlueFire’s technology can be applied.

BlueFire concentrated the bulk of its resources on developing the Fulton, MS project. We completed permitting for the project in November allowing for ground breaking in the same month. BlueFire initiated clearing, rough grading and drainage improvements on the site of the future plant. With this work, BlueFire Renewables, in conjunction with Itawamba County and the City of Fulton, has created construction jobs from Recovery Act funds received from the U.S. Department of Energy’s Energy Efficiency and Renewable Energy Program.

BlueFire was able to secure the 3 major contracts required to finance the Fulton facility. The first contract was the 15-year feedstock supply contract with Cooper Marine Timberlands. Offtake was secured with a 15-year contract with Tenaska Biofuels LLC, guaranteeing a buyer for all the cellulosic ethanol produced. Finally, a lump sum, turnkey construction contract was signed with Mastec, Inc.. All 3 companies are credit worthy companies which will help in the financing of the project.

BlueFire improved its cash position by raising capital in December when it sold a 1% membership interest in its Fulton Project, with an assessed value of $1.061MM, for a 25% discounted purchase price of $750,000.  This transaction sets a foundation for the Company to build on for raising the additional equity to construct the facility at the project level. The Company maintains a 99% ownership interest in the Fulton Project.

BlueFire will combine equity raised at the project level with one of the loan guarantees it expects to secure, from either the US Department of Agriculture or the US Department of Energy, allowing for further development and construction of the Fulton Project. The loan guarantees are moving forward and BlueFire is hopeful to have more clarity on their status shortly.

It has been a long journey to get to this point in a very challenging financial market.  We have invested the seed capital and tried to de-risk the project to a point where it becomes more attractive for project financing with the expectation that selling down interest in a more matured project will preserve the value of the development asset and allow the Company to pursue multiple project opportunities at the same time.

BlueFire is more than just an ethanol company.  We’re happy to announce the expansion of our capabilities, and feel that our new name captures our spirit for innovation and development of cleaner alternatives to fossil fuels. 2011 is poised to be a pivotal year for BlueFire as we pursue additional opportunities in renewable energy while working feverishly to build our first commercial cellulosic ethanol plant.

Check back periodically for more updated photos of construction progress on our new website atwww.bfreinc.com

About BlueFire Renewables, Inc.

BlueFire Renewables, Inc. was established to deploy a commercially ready, patented and proven Concentrated Acid Hydrolysis Technology Process for the profitable conversion of cellulosic waste materials (“Green Waste”) to renewable fuel sources, including Cellulosic Ethanol, Biodiesel, BioJet Fuel, and Drop-in Directs. BlueFire is the only cellulose-to-fuel company worldwide with demonstrated production of Biofuels from urban trash (post-sorted MSW), rice and wheat straws, wood waste and other agricultural residues.

BlueFire received an increase to its Grant totaling $88 million under the American Recovery and Reinvestment Act in December of 2009.  BlueFire’s biorefineries will be located near markets with high demand for ethanol and will use locally available biomass. This should dramatically reduce delivery costs and increase biofuel supplies, while providing a unique waste processing technology to help America’s cities better manage the increasing problem of overflowing landfills. For more information, please visit www.BFREINC.com.

If you would like to receive regular updates on BlueFire Renewables, please select this following link:http://www.b2i.us/irpass.asp?BzID=1437&to=ea&s=0.

Forward-Looking Statements

Statements about BlueFire Renewables expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Litigation Reform Act of 1995. BlueFire’s actual results could differ materially from expected results. BlueFire undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this press release; BlueFire will appropriately inform the public.

This press release includes statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). BlueFire Renewables, Inc. claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These forward-looking statements are often characterized by the terms “may,” “believes,” “projects,” “expects,” or “anticipates,” and do not reflect historical facts. Specific forward-looking statements contained in this press release include, but are not limited to: our successful development and deployment of ethanol production facility or facilities, impact of the company’s expansion plan, and new business development success, future financial results, the impact of competitive products or pricing from technological changes, the effect of economic conditions and other uncertainties. The forward-looking statements contained herein involve risks and uncertainties that could cause actual results to differ materially from the expectations contained in any such forward-looking statements. These risks include, but are not limited to: failure to manage operating expenses or integrate new facilities and/or technologies, each of which could have a material impact on our business, our financial results, and the company’s stock price. These risks and other factors are detailed in the Company’s regular filings with the U.S. Securities and Exchange Commission. Most of these factors are difficult to predict accurately and are generally beyond the Company’s control. Forward-looking statements speak only as to the date they are made and BlueFire Renewables, Inc. does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.