N-Viro International Corp. is an environmental technology company focused on fuel technology and agricultural products. The company today announced the completion of an equity funding and purchase agreement with VC Energy I LLC to establish the first full-scale N Viro Fuel ™ facility.

The two companies will collaboratively develop the first N-Viro Fuel facility, and gives VC Energy, in conjunction with N-Viro, the exclusive ability to mutually develop the N-Viro Fuel technology.

“We are very excited to be able to work closely with VC Energy. Their experience in the development of facilities coupled with the exciting prospects of N-Viro Fuel will solidify our ability to move forward and rapidly develop multiple projects. We anticipate this new relationship will succeed through vigorous development and future growth,” N-Viro president and CEO Timothy R. Kasmoch stated in the press release.

Per the agreement, VC Energy and N-Viro have completed an initial 200,000 share placement of N-Viro common stock at $2.50 per share; additionally, VC Energy has received warrants to purchase an additional 400,000 shares of N-Viro common stock on or before September 15, 2010.

The proceeds from VC Energy to N-Viro for the initial closing is funneled into N-Viro’s full scale N-Viro Fuel mobile test facility, which is expected to be in operation by the end of the third quarter of 2010. This facility will generate quantities of N-Viro Fuel for testing and additional analytical purposes regarding the N-Viro Fuel process.

“We have spent the past few years searching for a partner who can fulfill our capital needs and take an active role in the development and growth of N-Viro. Today, we believe we have found such a partner and look forward to a long and beneficial relationship,” Kasmoch concluded.

For more information visit www.nviro.com