GREENHUNTER ENERGY INITIATES $60 MILLION
PRIVATE PLACEMENT OF CONVERTIBLE DEBENTURES

GRAPEVINE, TEXAS, October 24, 2007 - GreenHunter Energy, Inc. announced today that it has closed on the first tranche of a new $60 million 10% Series A Senior Secured Redeemable Debenture (“Notes”) offering.  The notes will have a term of five years and will be exchangeable into freely tradable shares of GreenHunter Energy, Inc. common stock, once the required registration statement for the underlying securities goes effective with the regulatory authorities. 

The total amount received to-date by the Company from this private placement is approximately $3.5 million from 13 accredited investors.  A total of ten broker/dealers representing over 2,700 sales representatives have completed their due diligence and have recently executed selling agreements for the private placement of these Notes to their qualified customers. 

The securities have not been registered and cannot be offered or sold in the United States absent registration or an applicable exception therefrom.

GreenHunter Energy is focused on the renewable energy sectors of wind, 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 and California, 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 that provides to investors a portfolio of diversified assets in the alternative energy sector.

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.

###

For Further Information Contact:
GreenHunter Energy, Inc.
Gary C. Evans
1048 Texan Trail
Grapevine, TX 76051
Tel: (972) 410-1044