GREENHUNTER ENERGY BOARD OF DIRECTORS
AUTHORIZES 500,000 SHARE REPURCHASE PROGRAM

GREENHUNTER ENERGY FILES STOCK MANIPULATION COMPLAINTS WITH THE SECURITIES AND EXCHANGE COMMISSION, THE AMERICAN STOCK EXCHANGE, AND FINRA

GREENHUNTER ENERGY, SUBSIDIARIES, CEO, AND SIGNIFICANT INSTITUTIONAL SHAREHOLDER NAMED IN LAWSUIT COMPLAINT BELIEVED TO BE MERITLESS

GRAPEVINE, TEXAS, JUNE 30, 2008 – GreenHunter Energy, Inc. (AMEX: GRH) management has noticed unusual trading activity in the Company’s common stock, particularly the apparent increase in short positions since June 16, 2008.  Due to these activities and the Company’s thin float, this has created an approximate 50% drop in the price of GreenHunter Energy’s share price since mid June.  Management of the Company can ascertain no fundamental change in its operations or business prospects that would warrant such unusual trading activity.  Based on the Company’s belief that its shares are significantly undervalued, the Board of Directors has authorized the initiation of an open market share repurchase program of up to 500,000 shares.

Late last week, GreenHunter Energy asked the Securities and Exchange Commission (SEC), the American Stock Exchange (AMEX), the Financial Industry Regulatory Authority (FINRA) to investigate the recent unusual trading activity in GreenHunter Energy’s common stock for any possible securities laws violations.    
On June 16, 2008, Orion Ethanol Inc., a publicly listed Kansas-based ethanol company, filed suit in Kansas against GreenHunter Energy; certain of its subsidiaries; Gary C. Evans, GreenHunter Energy’s CEO and a former director of Orion; and a large institutional shareholder of GreenHunter Energy.  On or about May 30, 2007, Orion entered into an agreement to merge with GreenHunter Energy, subject to shareholder approval.  A majority of GreenHunter Energy’s unaffiliated shareholders did not approve the merger with Orion Ethanol.  On or about July 11, 2007, the two companies mutually signed an agreement terminating the proposed merger.

On June 11, 2008, the majority of Orion Ethanol’s noteholders made demand upon Orion for payment of $13,429,686 based upon the claim that Orion Ethanol was in default under its notes.  Two of Orion Ethanol’s largest noteholders are Gary C. Evans and a private fund managed by the large institutional shareholder named in the lawsuit.  The lawsuit against GreenHunter Energy et al generally alleges claims based upon alleged conflicts of interest by Mr. Evans in acquiring assets for GreenHunter Energy in 2006 and 2007.  Orion Ethanol has long been aware of GreenHunter Energy’s acquisition of the assets at issue, had absolutely no involvement in those transactions, and raised no claim of conflict of interest prior to the filing of this suit on June 16, 2008.

The Company believes the lawsuit is entirely without merit and plans to vigorously defend this matter.  In addition, the Company’s legal counsel is evaluating possible counterclaims against Orion Ethanol and other parties who may be involved.

Morgan F. Johnston, Senior Vice President, General Counsel and Secretary of the Company, commented, “It is disappointing that Orion Ethanol, having mutually agreed in an executed letter agreement to terminate a proposed merger with GreenHunter Energy on or about July 11, 2007, is now suing GreenHunter Energy and various of its affiliates.  The complaint filed by Orion Ethanol is predicated on numerous and substantial factual inaccuracies, and I believe the lawsuit is entirely without merit.  We are anxious to provide the written evidence that supports our legal position.”
   
Gary C. Evans, Chairman and Chief Executive Officer, stated, “It is extremely unfortunate that our long-term shareholders have recently had to suffer from these recent activities.  If it is discovered that our stock price has been illegally manipulated, we will seek full financial recourse on behalf of GreenHunter Energy shareholders.  Our Board of Directors has taken this situation very seriously, and we feel certain that the responsible parties will be appropriately handled in due course.   Late last week, formal complaints were filed with the Securities and Exchange Commission, the American Stock Exchange, and FINRA.  These agencies have since agreed to investigate the unusual trading activity in our securities.  The Company intends to cooperate with these criminal investigations and plans to seek civil damages against the appropriate parties for the ultimate benefit of GreenHunter Energy shareholders.”

GreenHunter Energy is focused on the renewable energy sectors of wind, hydro, geothermal, solar, biofuels, and biomass power plants. Our assets consist of leases of real property for future development of wind energy projects located in Montana, New Mexico, California, Texas, and China, a former waste oil and chemical refinery currently being converted to the nation’s largest biodiesel refinery located in Houston, Texas, and a biomass power plant located in El Centro, California. Headquartered in Grapevine, Texas, GreenHunter Energy was formed to be the first publicly traded renewable energy company based in the U.S. that provides to investors a portfolio of diversified assets in the alternative energy sector. Additional information about GreenHunter Energy may be found at www.greenhunterenergy.com.

For Further Information Contact:
GreenHunter Energy, Inc.
Jack W. Zedlitz
1048 Texan Trail
Grapevine, TX 76051
Tel: (972) 410-1044