KiOR Reports Third Quarter 2013 Results

KiOR Reports Third Quarter 2013 Results

                    Columbus Transitioning to Steady State
                              BFCC on Record Run
              Cornerstone Financial Commitments for Columbus II

PASADENA, Texas, Nov. 7, 2013 (GLOBE NEWSWIRE) -- KiOR, Inc. (Nasdaq:KiOR),
announced today its financial results for the third quarter ended September
30, 2013.

"I am happy to report again that we are seeing significant operational
progress at our Columbus facility and we believe that we are turning the
corner toward steady state operations," said Fred Cannon, KiOR's President and
Chief Executive Officer. "We produced 323,841 gallons of fuel in the quarter,
which brought us to a total production of 508,975 gallons of cellulosic fuel
through the end of the third quarter."

"Just as importantly," Cannon continued, "Columbus is on a run which began in
mid-September, and we are continuing to ramp up throughput at the facility.
Our fourth quarter has gotten off to a good start and we saw total production
in October of 167,087 gallons of fuel, our highest month to date. As a result,
we believe that with stable production over the balance of the year, our full
year production levels will exceed 1 million gallons. These achievements
support our strategy to pursue Columbus II as the company's next project and
the $100 million in financing commitments we received are serving as the
cornerstone investments for that facility."

Financial Results

For the third quarter 2013 the company recorded a net loss of $43.1 million,
or $0.40 per share, compared to a net loss of $38.5 million, or $0.36 per
share, for the second quarter of 2013. The third quarter loss included an
unfavorable adjustment of $2.1 million for higher than expected franchise
taxes primarily related to prior periods. Net loss for the third quarter of
2012 totaled $27.0 million, or $0.26 per share.

During the third quarter of 2013 total revenues were $720 thousand,
attributable to higher sales volume produced from our initial-scale commercial
production facility in Columbus, Mississippi.Total revenues for the second
quarter of 2013 were $239 thousand compared to none in the third quarter of
2012.

Cost of product revenue for the third quarter of 2013 totaled $19.5 million,
which includes non-cash charges of $2.2 million for the Columbus plant
depreciation as well as the aforementioned $2.1 million accrual for franchise
taxes.Cash costs totaled $15.2 million and consist primarily of feedstock and
consumables, labor, utilities, repairs and maintenance and associated start-up
costs incurred in connection with our efforts to achieve steady-state plant
operations.In the previous quarter and the third quarter of last year, cost
of product revenue was $15.1 million and zero, respectively. 

Research and development expenses for the third quarter 2013 were $7.9
million, a decrease of $0.7 million from the $8.6 million incurred in the
second quarter of 2013, and a decrease of $1.6 million from the $9.5 million
recorded for the third quarter of 2012.These favorable variances to prior
quarter and year-over-year reflect primarily lower lab costs and maintenance
costs at our Pasadena demo and pilot plants.

General and administrative expenses for the third quarter of 2013 were$7.3
million compared to $7.9 million in the previous quarter and to the $17.5
million recorded for the third quarter of 2012.The quarter-over-quarter
decrease reflects lower consulting and employment related expenses.In
comparison to the third quarter of 2012, the large reduction is due to
start-up related activities at the Columbus plant being previously recorded to
general and administrative expense prior to commencement of commercial
operations in March 2013.All Columbus production costs as well as costs to
get to steady state operations are now included and reported in cost of
product revenue.

Cash and cash equivalents at September 30, 2013, totaled $4.3 millioncompared
to $11.5 million at the end of the second quarter 2013.The $50 million of
cash received from our two recent private placements were not received until
after quarter-end and are not reflected in the above cash balances.

Net long-term debt at the end of the third quarter of 2013 was $175.7 million
compared to $149.7 million in the previous quarter, with the increase
attributable to additional draws made under the company's loan facility during
the quarter and interest paid-in-kind during the period.Capital investments
during the third quarter were$1.1 million, primarily related to front end
engineering and design work related to KiOR's planned Columbus II production
facility.

Conference Call Information

The Company will discuss these results on a conference call scheduled for
today at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). Participants may
join the conference call by dialing (877) 468-8808 (for U.S. and Canada) or
(443) 616-2702 (International). The conference access code is 33202210 for all
participants. To listen via live webcast, please visit the investors section
of the Company's website: http://investor.kior.com/events.cfm. An audio
replay will remain available for seven days until Thursday, November 14, 2013
at 11:59 p.m. Eastern Time (10:59 p.m. Central Time) and can be accessed by
dialing (855) 859-2056 (for U.S. and Canada) or (404) 537-3406
(International). The conference call replay access code is 33202210 for all
participants. The replay will also be available in the investors section of
the Company's website approximately two hours after the conclusion of the call
and remain available for approximately 90 calendar days.

About KiOR

KiOR, a global leader in cellulosic gasoline and diesel transportation fuels,
has developed a unique proprietary technology platform to convert abundant and
sustainable non-food biomass into fuels for use in vehicles on the road today.
KiOR's cellulosic fuels, which may be transported using existing distribution
networks, help ease dependence on foreign oil, reduce lifecycle greenhouse gas
emissions and create high-quality jobs and economic benefit across rural
communities.

KiOR's shares are traded on NASDAQ under the symbol "KiOR." For more
information, please visit www.KiOR.com.

Forward-Looking Statements

This release contains "forward looking" statements within the meaning of the
Private Securities Litigation Reform Act of 1995 and Section 21E of the
Securities Exchange Act of 1934, as amended, regarding future results and
events, including, without limitation, statements about: our operational
progress, our timing to reach steady state operations, the performance of our
next generation catalyst platform, the levels of our yield of gallons per bone
dry ton of biomass and our anticipated future operations. For this purpose,
any statements contained herein that are not statements of historical fact may
be deemed forward looking statements. Without limiting the foregoing, the
words "believes," "anticipates," "plans," "expects," intends," "appears,"
"estimates," "projects," "would," "could," "should," "targets," and similar
expressions are also intended to identify forward looking statements. The
forward looking statements in this press release involve a number of important
risks and uncertainties, which could cause our actual future results to differ
significantly from the results discussed in the forward looking statements
contained in this press release. Such factors include whether we will satisfy
the conditions necessary to receive the future amounts committed in our two
private placements, the timing for completing the construction of the Columbus
II facility, the operational progress at our Columbus I facility towards
steady state operations, our ability to increase our capacity and yields at
our Columbus I and II facilities, the ability of Columbus II to leverage
resources from and synergies with Columbus I, the cost-competitiveness and
market acceptance of our products, and the impact of general, economic,
industry or political conditions in the United States or internationally, and
other factors that are discussed more fully in the section entitled "Risk
Factors" in our Annual Report on Form 10-K for the year ended December 31,
2012 as filed with the United States Securities and Exchange Commission (the
"SEC"), in our Quarterly Report on Form 10-Q filed with the SEC on August 9,
2013 and in our other filings with the Securities and Exchange Commission. The
"Risk Factors" discussion in the filings listed above is incorporated by
reference in this press release. If any of these risks or uncertainties
materialize, or if our underlying assumptions prove to be incorrect, actual
results, levels of activity, performance or achievement may vary significantly
from what we have projected. We specifically disclaim any obligation to update
these forward looking statements in the future. These forward-looking
statements should not be relied upon as representing our estimates or views as
of any date subsequent to the date of this press release.

KiOR, Inc.                                                       
Condensed Consolidated Statement of                               
Operations
(Unaudited)                                                      
(In thousands, except shareand per share                         
amounts)
                                                                
                                 Three Months          Nine Months Ended
                                  EndedSeptember 30,   September 30,
                                 2013       2012       2013        2012
Revenues:                                                        
Product revenue                   $591      $--      $848        $--
Renewable identification number   129       --       182        --
revenue
                                                                
Total revenues                    720       --       1,030      --
                                                                
Operating expenses:                                              
Cost of product revenue           $19,452   $--      $39,948    $--
Research and development expenses 7,922     9,466     25,660     27,177
General and administrative        7,289     17,490    29,830     39,303
expenses
Total operating expenses          34,663    26,956    95,438     66,480
                                                                
Loss from operations              (33,943)  (26,956)  (94,408)   (66,480)
                                                                
Other income (expense), net:                                     
Interest income                   --       4         1          13
Interest expense, net of amounts  (9,125)   --       (18,490)   (274)
capitalized
                                                                
Other income (expense), net       (9,125)   4         (18,489)   (261)
                                                                
Loss before income taxes          (43,068)  (26,952)  (112,897)  (66,741)
                                                                
Income tax expense - current      --       --       --        --
                                                                
Net loss                          $(43,068) $(26,952) $(112,897) $(66,741)
Net loss per share of Class A     $(0.40)   $(0.26)   $(1.06)    $(0.64)
common stock, basic and diluted
Net loss per share of Class B     $(0.40)   $(0.26)   $(1.06)    $(0.64)
common stock, basic and diluted
Weighted-average Class A and B
common shares outstanding, basic  106,691   104,805   106,161    104,085
and diluted

                                                           
KiOR, Inc.                                                  
Condensed Consolidated Balance Sheets                       
(Unaudited)                                                 
(In thousands)                                              
                                                           
                                         September 30, 2013 December31, 2012
                                                           
Assets                                                      
Current assets:                                             
Cash and cash equivalents                 $4,348             $40,887
Restricted cash                           200                
Inventories                               3,075              3,239
Prepaid expenses and other current assets 2,501             1,528
Total current assets                      10,124             45,654
Property, plant and equipment, net        251,679            246,410
Intangible assets, net                    2,176              2,332
Other assets                              1,204             1,641
Total assets                              $265,183           $296,037
                                                           
Liabilities, Convertible Preferred Stock                    
and Stockholders' Equity (Deficit)
Current liabilities:                                        
Current portion of long-term debt         $4,697             $5,124
Accounts payable                          3,520              4,175
Accrued capital expenditures              115                953
Accrued liabilities                       10,131             5,753
Total current liabilities                 18,463             16,005
Related party long-term debt with Alberta
Lenders/Khosla term loan, less current    135,212            79,843
portion, net of discount
Long-term debt, less current portion, net 40,460             41,035
of discount
Other Liabilities                         64                 146
Total liabilities                         194,199            137,029
Total stockholders' equity (deficit)      70,984             159,008
Total liabilities, convertible preferred  $265,183           $296,037
stock and stockholders' equity

CONTACT: For Investors:
        
         Dan Richardson
         Vice President of Finance
         281-694-8744
         Investor.relations@kior.com
 
         For Media:
        
         Kate Perez
         Director of Corporate Communications & Public Relations
         281-694-8831
         Media@kior.com

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