GREENHUNTER ENERGY COMPLETES PRIVATE PLACEMENT
RAISES $19.2 MILLION OF NEW EQUITY

GRAPEVINE, TEXAS, DECEMBER 20, 2007 - GreenHunter Energy, Inc. announced today it has raised an aggregate of $19.2 million from various accredited investors pursuant to a private placement under Regulation D of the Securities Act of 1933 as amended.  GreenHunter issued an aggregate of 801,001 Units at $12.00 per share.  A Unit consisted of (i) two shares of its common stock, par value $.001 per share and (ii) one Common Stock Purchase Warrant.

Each Warrant entitles the holder to purchase one share of our Common Stock for $18.00 per share. Each Warrant will be exercisable immediately and will expire three years from its issue date.  The Company can call for the exercise of the Warrants to the holders upon the common stock trading at an average price at or above $24.00 per share for the previous ten trading days.

Capital West Securities, Inc. out of Oklahoma City served as the principal financial advisor to the Company and led the placement of the securities on this transaction.

Mr. Gary C. Evans, Chairman and CEO of GreenHunter Energy, Inc. stated, “With the closing of this equity capital raise, our Company has now completed and received funds in excess of $40 million in new equity and approximately $7 million of convertible debentures this year.  These new funds were necessary to fuel our Company’s growth plans within our three renewable business lines comprised of (i) biodiesel, (ii) wind and (iii) biomass.  We were successful at accessing this capital in less than a nine month period during a somewhat difficult time on Wall Street.  Compounding the tough capital environment in our sector has been the recent poor operating performance of the corn-based ethanol industry.  We attribute our Company’s recent success to a combination of the premium quality of our diversified portfolio of projects, our very low cost basis, and to a superior professional management team that we continue to expand within our current organization.”

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.

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