GRAPEVINE, TEXAS, AUGUST 29, 2008 – Gary C. Evans, the Chairman, President, and CEO of GreenHunter Energy, Inc. (AMEX: GRH), announced today the early conversion, effective August 30, 2008, of an existing convertible note held by Investment Hunter, LLC, an entity in which Mr. Evans is the manager and owner, into GreenHunter Energy restricted common stock.  The note was converted today at a predetermined price of $5.00 per share, and the transaction has resulted in an increase of ownership of an additional 594,011 shares of GreenHunter Energy restricted common stock.

As a result of the early conversion of this existing promissory note, which was converted prior to the August 30, 2008 record date for the common stock purchase warrant dividend (see press release dated August 19, 2008), Investment Hunter, LLC will also receive 59,401 common stock purchase warrants.  The warrants will have a term of three years and an exercise price of $27.50 per common share.  The Company may call the warrants at any time after one year and the Common Stock of GreenHunter Energy has closed at an average price of  $32.50 per share or greater for the preceding ten days.

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.

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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, wind development projects in Wyoming and China that we believe will be acquired in the future, the nation’s largest biodiesel refinery located in Houston, Texas, and a cow manure-fired power plant located in Brawley, 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

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