SCOTT, LA - ESP Resources Inc., a manufacturer, blender, distributor and marketer of specialty chemicals and analytical services, has signed a purchase agreement for up to $5 million with Lincoln Park Capital Fund LLC (LPC), a Chicago-based institutional investor.

Upon signing the agreement, LPC invested $100,000 in ESP Resources as an initial purchase under the agreement at $.15 per share together with warrants to purchase an equivalent number of shares at an exercise price of $.20 per share.

The company also has the right, at its discretion, to sell to LPC up to an additional $4.9 million of its common stock over a 30-month period, provided that a registration statement related to the transaction has been declared effective by the U.S. Securities & Exchange Commission. Generally, the company has the right to sell stock to LPC in amounts up to $500,000 depending on certain conditions as set forth in the purchase agreement.

There are no upper limits to the price LPC may pay to purchase ESP Resources' common stock. The purchase price of the shares related to the $4.9 million of future funding will be based on the prevailing market prices of the company's shares at the time of sales without any fixed discount, and the company will control the timing and amount of any sales of shares to LPC. Except for a limitation on variable priced financings, there are no financial or business covenants, restrictions on future funding, rights of first refusal, participation rights, penalties or liquidated damages in the purchase agreement. The agreement may be terminated by the company at any time, at its sole discretion, without any cost or penalty.

"We are pleased to have signed a purchase agreement with Lincoln Park Capital," said David Dugas, President of ESP Resources. "After significant due diligence, we look forward to working with the team at Lincoln Park Capital. They have an outstanding reputation in the financial marketplace, and we welcome them as an investor."