SHEC LABS, as of this first closing, has raised $964,900. This is inclusive of $352,000 received from accredited investors. In addition, the corporation also has subscription agreements from investors totaling about $150,000 in funds that are still being processed through financial institutions. These funds will be included in the second closing. SHEC LABS will be conducting multiple closings on this OM until it is fully subscribed or until the final closing.

The proceeds from this shares and warrants offering are intended to be used primarily to deploy the first phase of the SHEC Station #1 Project, a proposed Solar Hydrogen Production Facility at the Fleet Street Landfill in Regina, Saskatchewan, Canada. The first phase of this proposed facility will include installing a gas collection and cleaning system to produce "green" synthetic natural gas from the City's landfill and then to further process this into hydrogen with the installation of SHEC LABS' first 5 solar hydrogen production modules.

This Private Placement Offering is being conducted in accordance with the OM requirements of National Instrument 45-106 and is available to most residents of Canada. SHEC LABS is offering 4,000,000 units to the public at $2.50 per unit. Each unit consists of one Class A common share and one-half (½) of one Class A common share purchase warrant. Each share purchase warrant has an exercise price of $3.50 per share and an expiration date of December 30, 2007.

"I am very pleased with the interest we are receiving in this Project and the progress on our OM" said Thomas Beck, CEO of SHEC LABS. "We have tremendous momentum being built and it is very gratifying to see this amount of investment in the early stages of the offering. The bulk of funds raised in our historical offering occurred in the last two weeks of an offering. We don't see it happening this time." said Tom Beck. "Further, to date we have been marketing the OM locally and will be expanding its territory for subsequent closings."

A Private Placement Offering Memorandum can be obtained online from: www.shecregister.com or from SHEC LABS directly at:

2214 Hanselman Avenue
Saskatoon SK. S7L 6A4
Telephone 306-956-2225

About SHEC LABS - Solar Hydrogen Energy Corporation
SHEC LABS, a research and development company now embarking on commercialization, aims to become a world leader in providing solutions for the production of clean, renewable energy for the emerging hydrogen economy. Founded in 1996, SHEC LABS has developed leading-edge technologies to more economically harness the power of the sun, reduce the temperatures required for the disassociation of water, more economically produce hydrogen from fossil fuels and produce hydrogen from biomass sources.

Additional information about SHEC LABS may be found at: www.shec-labs.com