ETHANEX ENERGY, INC. 14500 Parallel Road, Suite A Basehor, KS 66007 March 23, 2008

ETHANEX ENERGY, INC.

00000 Xxxxxxxx Xxxx, Xxxxx X

Xxxxxxx, XX 00000

March 23, 2008

Via Facsimile

Midwest Renewable Energy, LLC

0000 Xxxxx Xxxxxx, Xxxxx 000

Xxxxx, XX 00000

Fax:                 (000) 000-0000

Attention:	Xxxxx Jandrian, CPA
	Xxxxx X. Xxxxxx

Dear Xxx and Xxxxx:

Reference is made to that certain Asset Purchase Agreement, dated February 10, 2008, by and among Midwest Renewable Energy, LLC, a Nebraska limited liability company, Ethanex Energy, Inc., a Nevada corporation (“Ethanex”), Ethanex Xxxxxxxxxx Land, LLC, a Delaware limited liability company, Ethanex Xxxxxxxxxx, LLC, a Delaware limited liability company, Ethanex Phase I, LLC, a Delaware limited liability company, Ethanex Phase II, LLC, a Delaware limited liability company, and Ethanex Phase III, LLC, a Delaware limited liability company, as the same was amended by that certain First Amendment, dated March 11, 2008 (the “Asset Purchase Agreement”). Pursuant to Section 12(a)(viii) of the Asset Purchase Agreement, Ethanex hereby terminates the Asset Purchase Agreement, effective immediately, because it has been unable to obtain interim financing of at least $1.5 million and has not entered into a legally binding agreement pursuant to which it would have available to it interim financing of at least $1.5 million.

	Sincerely,
	Ethanex Energy, Inc.
	By:	/s/ Xxxxxx X. Xxxxx, III
		Xxxxxx X. Xxxxx, III
		President and Chief Executive Officer

cc:

Xxxxx Xxxxx

XxXxxxx North Xxxxxx & Xxxxx, PC LLO

First National Tower, 0000 Xxxxx Xxxxxx, Xxxxx 0000

Xxxxx, XX 00000

Fax:                 (000) 000-0000

Xxxx Director

Xxxxxxxx & Xxxxx LLP

000 00xx Xxxxxx, XX, Xxxxx 0000

Xxxxxxxxxx, XX 00000

Fax:                 (000) 000-0000