GREENHUNTER ENERGY LAUNCHES NEW $20 MILLION PRIVATE PLACEMENT OF
CONVERTIBLE DEBENTURES

GRAPEVINE, TEXAS, JULY 10, 2008 – GreenHunter Energy, Inc. (AMEX: GRH) announced today that it is offering to accredited investors an 8% Series B Senior Secured Redeemable Debenture (“Notes”).  The Notes will have a term of five years and be exchangeable into shares of GreenHunter Energy, Inc. common stock, at the discretion of the Company, once the required registration statement for the underlying securities goes effective with the regulatory authorities.

The asset securing the Notes is an existing 18.5 Megawatt biomass power generation facility, more commonly referred to as the Mesquite Lake Cattle Manure Power Plant, located near El Centro, California.  GreenHunter acquired the facility in May of 2007 for approximately $7.5 million, and has budgeted an additional $13 million for the purpose of refurbishing and re-powering this dormant asset.  Construction contracts were recently awarded and the refurbishment of this facility began in June, 2008 with a targeted completion date of December, 2008.  This biomass power generation facility has an existing 15-year Power Purchase Agreement with Southern California Edison to sell the power.

This press release does not constitute an offer to sell, or the solicitation of an offer to purchase the Notes.

Forward-Looking Statements
Any statements in this press release about future expectations and prospects for GreenHunter Energy and its business and other statements containing the words “believes”, “anticipates”, “plans”, “expects”, “will” and similar expressions constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the substantial capital expenditures required to fund its operations, the ability of the Company to implement its business plan, government regulation and competition. GreenHunter Energy undertakes no obligation to update these forward-looking statements in the future.

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, the nation’s largest biodiesel refinery located in Houston, Texas, and a cow manure-fired 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