MagneGas Receives $382,500, Signs Definitive Agreements for Expansion into Gulf Coast, Including $775,000 Equipment Sale

MagneGas® Corporation ("MagneGas®" or the "Company")

a leading technology company that counts among its inventions a patented process that converts liquid waste into MagneGas® fuel, announced today that the Company has signed a "Gasifier Purchase Agreement" (the "Gasifier Agreement") and "Distribution and License Agreement" (the "Distribution Agreement") with Green Arc Supply, LLC ("Green Arc") to manufacture and sell a $775,000 100kw Plasma-Arc Gasification system (the "System"). This agreement represents the first time in the history of the Company that an equipment sale has been made inside the United States and signifies a new era in the Company's expansion strategy. The Company believes this is the most significant event this year as the agreements call for extensive expansion with the potential for substantial capital infusion through additional equipment sales in the coming months. Under the terms of the Gasifier Agreement, the Company will manufacture and sell to Green Arc a 100kw Plasma-Arc Gasification System to distribute MagneGas2® fuel for the metal cutting market as a replacement to acetylene. Under the terms of the Gasifier Agreement, $10,000 was paid at the signature of the original Memorandum of Understanding ("MOU") on July 24, 2015, $382,500 was paid at the time of the execution of the Gasifier Agreement, with $191,500 due and payable upon 75% construction completion of the System, and the balance due and payable upon completion of construction of the System. Under the terms of the Distribution Agreement, MagneGas will receive royalty payments that equate to approximately 6% of gross sales. Green Arc will have exclusive distribution rights for certain regions of Louisiana and Texas with non-exclusive distribution rights in remaining regions of Louisiana and Texas and all of Arkansas, Mississippi and Oklahoma. Green Arc has the right to expand their exclusivity in those states with the purchase of additional systems. Green Arc has notified the Company that they plan to expand aggressively with the purchase of several additional systems in the coming months and in response, the Company has begun expanding its manufacturing capability at its headquarters. On July 24, 2015 the Company had previously announced that they had signed an MOU with Green Arc to expand into Louisiana and Texas through a Joint Venture with a $550,000 Plasma-Arc Gasification system sale that included future royalty payments and profit sharing rights. The MOU has been replaced by the Gasifier Agreement and Distribution Agreement to eliminate the joint venture arrangement in lieu of higher royalty and equipment sale payments. "Louisiana and Texas are some of the greatest users of acetylene for metal cutting in the country with the multiple oil and gas companies in the area. We at Green Arc Supply have studied and tested MagneGas2 and feel that there is no better fuel to expand rapidly into this market. Multiple tests have shown that MagneGas cuts cleaner, faster and is more economical than acetylene which is ideal for this area where productivity is key to success. We look forward to expanding into multiple regions of the South," stated Rafe Dean, Vice President of Operations, Green Arc Supply. "We are excited to be joining forces with Green Arc Supply to expand MagneGas availability into the South. We are executing on our plan to expand fuel sales nationally with this, the first equipment sale in Company history in the United States. We believe this agreement serves as a turning point for the Company strategy as we begin our rapid expansion plans. We believe there are many more to come as we increase our fuel sales across the United States, and we thank the diligent efforts of Spyro Vasilliou,VP of Gas Sales and Jim Cohen, VP of Equipment Sales for their efforts in making this transaction a great success," stated Ermanno Santilli, CEO of MagneGas Corporation.