NEWS RELEASE

BIOFUEL ENERGY REPORTS FOURTH QUARTER AND YEAR END 2011 RESULTS

IMPROVED PROFITABILITY OVER THE THIRD QUARTER WITH

$4.5 MILLION OF NET INCOME IN THE FOURTH QUARTER

DENVER, COLORADO – MARCH 1, 2012 – BIOFUEL ENERGY CORP. (NASDAQ:BIOF), an ethanol production company, today announced that, for the quarter ended December 31, 2011, it generated $4.5 million of net income on revenues of $164.0 million, compared with a net loss of $1.1 million on revenues of $141.4 million in the year-ago quarter. For the year ended December 31, 2011, the net loss was $10.4 million on revenues of $653.1 million, compared with a net loss of $25.2 million on revenues of $453.4 million for the year ended December 31, 2010. For the quarter ended December 31, 2011, the net income attributable to common stockholders was $3.8 million, or $.03 per diluted share, while for the year ended December 31, 2011 the net loss attributable to common stockholders was $8.7 million, or $.09 per share.

“We were very pleased with our results for the fourth quarter and appreciate the efforts of our entire team in achieving them,” said Scott H. Pearce, the Company’s President and Chief Executive Officer. “Of particular note, we have successfully installed corn oil extraction systems at both plants and are excited about the prospects for this new co-product revenue stream. As everyone knows, commodity margins contracted severely towards the end of the year and have remained at challenging levels during the first quarter. We expect, however, that seasonal factors will bring more favorable margins as the year goes on, as they have in the past.”

For the quarter ended December 31, 2011, the Company’s operating income was $6.4 million, which resulted from $154.6 million in cost of goods sold and $3.0 million in general and administrative expenses. During the fourth quarter of 2011 the Company also incurred $1.9 million in interest expense, which resulted in net income of $4.5 million. For the full year 2011, the Company’s operating loss was $0.2 million, which resulted from $642.5 million in cost of goods sold and $10.8 million in general and administrative expenses. The Company also incurred $10.2 million of interest expense during the year, which resulted in a net loss of $10.4 million.

At December 31, 2011, the Company had $176.8 million in term loans outstanding under its senior debt facility. At December 31, 2011, the Company held $15.1 million of cash and cash equivalents and equity totaled $99.9 million, including $5.5 million of noncontrolling interest.

The Company plans to host a conference call on Friday, March 2, 2012 beginning at 11:00 a.m. (EST) to discuss the results. To participate, please dial (800) 944-8766. The participant code for the call is 84358. Approximately 90 minutes following the call, a phone playback will be available for 30 days by dialing (866) 281-6782. The access code for the replay is 167702.

This release contains certain forward-looking statements within the meaning of the Federal securities laws. Such statements are based on management’s current expectations, estimates and projections, which are subject to a wide range of uncertainties and business risks. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of whether, or the times by which, our performance or results may be achieved. Factors that could cause actual results to differ from those anticipated are discussed in our Exchange Act filings and our Annual Report on Form 10-K.

1600 Broadway, Suite 2200• Denver, CO • 303.640-6500 • www.bfenergy.com

BioFuel Energy currently has two 110 million gallons per year ethanol plants in the Midwestern corn belt. The Company’s goal is to become a leading ethanol producer in the United States by acquiring, developing, owning and operating ethanol production facilities.

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Contact:	Kelly G. Maguire	For more information:
	Executive Vice President &	www.bfenergy.com
	Chief Financial Officer
	(303) 640-6500
	kmaguire@bfenergy.com

1600 Broadway, Suite 2200• Denver, CO • 303.640-6500 • www.bfenergy.com

BioFuel Energy Corp.

(in thousands, except per share amounts)

	Three Months Ended December 31,						Years Ended December 31,
	2011			2010			2011			2010
Summary Income Statement
Net sales	$	163,990		$	141,383		$	653,073		$	453,415
Cost of goods sold		154,553			136,301			642,504			454,638
Gross profit (loss)		9,437			5,082			10,569			(1,223	)
General and administrative expenses:
Compensation expense		2,175			1,678			7,237			6,830
Other		874			923			3,567			5,565
Operating income (loss)		6,388			2,481			(235	)		(13,618	)
Interest expense		(1,932	)		(3,544	)		(10,126	)		(11,605	)
Net income (loss)		4,456			(1,063	)		(10,361	)		(25,223	)
Less: Net (income) loss attributable to the noncontrolling interest		(663	)		16			1,644			5,240
Net income (loss) attributable to BioFuel Energy Corp. common stockholders	$	3,793		$	(1,047	)	$	(8,717	)	$	(19,983	)
Income (loss) per share attributable to BioFuel Energy Corp. common stockholders:
Basic	$	0.04		$	(0.04	)	$	(0.09	)	$	(0.79	)
Diluted	$	0.03		$	(0.04	)	$	(0.09	)	$	(0.79	)
Weighted average shares outstanding:
Basic		102,545			25,449			94,687			25,421
Diluted		123,184			25,449			94,687			25,421
Depreciation Expense	$	6,763		$	6,755		$	26,995		$	26,894
Additional operational data
Ethanol sold (gallons, in thousands)		54,314			56,511			216,694			224,187
Dry distillers grain sold (tons, in thousands)		75.3			120.7			335.6			498.1
Wet distillers grain sold (tons, in thousands)		216.5			95.8			715.6			362.1
Corn ground (bushels, in thousands)		19,710			20,718			78,286			80,568
	December 31,			December 31,
	2011			2010
Summary Balance Sheet
Cash and cash equivalents	$	15,139		$	7,428
Accounts receivable		13,591			27,802
Inventories		26,188			23,689
Prepaid expenses		2,148			1,561
Other current assets		421			3,330
Property, plant and equipment, net		235,888			260,078
Debt issuance costs, net		2,763			4,979
Other non-current assets		3,448			2,844
Total assets	$	299,586		$	331,711
Total current liabilities	$	24,452		$	52,238
Long-term debt, net of current portion		166,937			215,479
Tax increment financing, net of current portion		4,867			5,245
Other non-current liabilities		3,388			4,327
Total liabilities		199,644			277,289
BioFuel Energy Corp. stockholders' equity		94,485			54,170
Noncontrolling interest		5,457			252
Total equity		99,942			54,422
Total liabilities and equity	$	299,586		$	331,711
Total Common Stock shares outstanding at February 28, 2012, net of 809,606 shares held in treasury		104,573,689

1600 Broadway, Suite 2200• Denver, CO • 303.640-6500 • www.bfenergy.com