Press Releases

June 25, 2004

HERON LAKE, Mn - Heron Lake BioEnergy, LLC announced today that it intends to construct and operate a 50 million gallon per year fuel-grade dry mill ethanol plant near Heron Lake, Minnesota, with coal as the primary source of energy. The Company has hired Fagen, Inc. and its process technology provider, ICM Inc., to design and build the plant. The Company's project is to reach financial closing and begin construction in the spring of 2005, and to complete construction and begin operations in the summer of 2006.

Heron Lake BioEnergy is a Minnesota-based limited liability company seeking to integrate energy and the environment. Heron Lake BioEnergy has filed a registration statement with the Minnesota Department of Commerce for an offering of up to $40 million of its capital units, at a price of $2.00 per unit. The company plans to begin conducting meetings with potential investors in July 2004.

A registration statement relating to these securities has been filed with the Minnesota Department of Commerce but has not yet become effective. These securities may not be sold nor offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of securities in any state in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

For additional information, please contact Robert J. Ferguson, the Board President, at: Heron Lake BioEnergy, LLC, 201 10th Street, P.O. Box 198, Heron Lake, Minnesota 56137. Or contact the Company by phone at (507) 793-0077, by facsimile at (507) 793-0078, or by e-mail at info@heronlakebioenergy.com.