**Table      of Contents**

**UNITED        STATES SECURITIES AND        EXCHANGE COMMISSION**

**Washington**

**, **

**D.C.**

** **

**20549**

**Form 10-QSB/A**

|                                                                                 |   |                                                                                                                                        |
|--------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|
| **þ**                                                                           |   | **QUARTERLY                REPORT UNDER SECTION 13 OR 15(d)****OF                THE SECURITIES EXCHANGE ACT OF 1934**                 |
| **FOR                THE QUARTERLY PERIOD                ENDED MARCH 31, 2007** |
| **OR**                                                                               |
| **o**                                                                                |   | **TRANSITION                REPORT UNDER SECTION 13 OR 15(d)****OF                THE SECURITIES EXCHANGE ACT OF                1934** |

**Commission        File Number 000-50842**

**Earth        Biofuels,        Inc.**

*(Exact        name of small business        issuer specified in its charter)*

|                                                                                                           |   |                                                                  |
|----------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|
| **Delaware**                                                                                                   |   | **71-0915825**                                                        |
| *(State                or other jurisdiction of**incorporation                or                organization)* |   | *(IRS                Employer**Identification                Number)* |

**3001        Knox Street, Suite 403**

**Dallas**
**,        **
**TX**
** **
**75205**

*(Address        of principal executive        offices)*

**(214) 389-9800**

*(Issuer’s        telephone        number)*

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**EARTH        BIOFUELS, INC.**

**TABLE        OF CONTENTS**

**FORM 10-QSBA        QUARTERLY REPORT**

|                                                          |   |                                                                                                                                                                        |   |   |   |   |
|---------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| **PART I                FINANCIAL INFORMATION**          |
| Item 1.                                                  |   | Financial                Statements                                                                                                                                         |   |   | 3      |   |
|                                                          |   | Restated                Consolidated Balance Sheets at March 31, 2007 and December 31,                2006 (unaudited)                                            |   |   | 3      |   |
|                                                          |   | Restated                Consolidated Statements of Operations for the Three Months Ended                March 31, 2007 and 2006 (unaudited)                            |   |   | 4      |   |
|                                                          |   | Restated                Consolidated Statement of Stockholders’ Equity for the three month period                ended March 31,                2007 (unaudited) |   |   | 5      |   |
|                                                          |   | Restated                Consolidated Statements of Cash Flows for the Three Months Ended                March 31, 2007 and 2006 (unaudited)                            |   |   | 6      |   |
|                                                          |   | Notes                to Restated Consolidated Financial Statements (unaudited)                                                                                              |   |   | 7      |   |
| Item 2.                                                  |   | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations                                                   |   |   | 15     |   |
| Item 3.                                                  |   | Controls                and Procedures                                                                                                                                      |   |   | 25     |   |
|                                                          |
| **PART II                OTHER INFORMATION**             |
| Item 1.                                                  |   | Legal                Proceedings                                                                                                                                            |   |   | 26     |   |
| Item 2.                                                  |   | Equity                Securities and Use of Proceeds                                                                                                                        |   |   | 27     |   |
| Item 3.                                                  |   | Defaults                upon Senior Securities                                                                                                                              |   |   | 34     |   |
| Item 4.                                                  |   | Submission                of Matters to a Vote of Security Holders                                                                                                          |   |   | 34     |   |
| Item 5.                                                  |   | Other                Information                                                                                                                                            |   |   | 34     |   |
| Item 6.                                                  |   | Exhibits                                                                                                                                                                    |   |   | 34     |   |
| Signatures                                                    |   |                                                                                                                                                                        | 40     |   |
|  Certification                of Chief Executive Officer |
|  Certification                of Chief Financial Officer |
|  Certification                of Chief Executive Officer |
|  Certification                of Chief Financial Officer |

----

**Table      of Contents**

**PART I        FINANCIAL INFORMATION**

**Item 1.**

**EARTH        BIOFUELS, INC.**

**CONSOLIDATED        BALANCE SHEETS**

|                                                                                                                                                                                                    |   |                                            |     |   |                  |   |    |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|----------|--------|-----------------------|--------|---------|--------|
|                                                                                                                                                                                                    |   | **March 31,**                              |     |   | **December 31,** |   |
|                                                                                                                                                                                                    |   | **2007**                                        |     |   | **2006**              |   |
|                                                                                                                                                                                                    |   | **(Restated)**                                  |     |   |                  |   |
|                                                                                                                                                                                                    |   | **(Unaudited)**                                 |     |
|                                                                                                                                                                                                    |   | **($                in 000’s, except**    |     |
|                                                                                                                                                                                                    |   | **per                share and share amounts)** |     |
|                                                                                                                                                                                                    |   |                                            |     |   |                  |   |    |   |
| **ASSETS**                                                                                                                                                                                              |
| **Current                Assets**                                                                                                                                                                       |   |                                            |     |   |                  |   |    |   |
| Cash                and cash equivalents                                                                                                                                                                |   | $                                               | 1,921    |   |                  | $      | 291     |   |
| Investments                in equity securities                                                                                                                                                         |   |                                            | 142      |   |                  |   | 285     |   |
| Trade                accounts receivable, net of allowances totaling $0 and                $109                                                                                                         |   |                                            | 3,520    |   |                  |   | 3,019   |   |
| Inventory,                finished goods                                                                                                                                                                |   |                                            | 802      |   |                  |   | 785     |   |
| Prepaid                expenses and other current assets                                                                                                                                                |   |                                            | 3,276    |   |                  |   | 1,471   |   |
| Advances                to related parties                                                                                                                                                              |   |                                            | 210      |   |                  |   | — |   |
| Notes                receivable                                                                                                                                                                         |   |                                            | 894      |   |                  |   | 857     |   |
|                                                                                                                                                                                                    |   |                                            |     |   |                  |   |    |   |
| **Total                Current Assets**                                                                                                                                                                 |   |                                            | 10,765   |   |                  |   | 6,708   |   |
| Property,                Plant and equipment, net of accumulated depreciation of $8,517 and                $7,854                                                                                       |   |                                            | 28,382   |   |                  |   | 27,015  |   |
| Investments                and advances                                                                                                                                                                 |   |                                            | 43,429   |   |                  |   | 40,860  |   |
| Investment —                related party                                                                                                                                                    |   |                                            | 100      |   |                  |   | 100     |   |
| Notes                receivable from related parties                                                                                                                                                    |   |                                            | 11,266   |   |                  |   | 5,824   |   |
| Deferred                financing fees                                                                                                                                                                  |   |                                            | 2,570    |   |                  |   | 2,445   |   |
| Goodwill                and other intangibles, net of accumulated amortization of $224 and                $168                                                                                          |   |                                            | 29,662   |   |                  |   | 30,032  |   |
| Prepaid                and other long term assets                                                                                                                                                       |   |                                            | 1,823    |   |                  |   | 747     |   |
|                                                                                                                                                                                                    |   |                                            |     |   |                  |   |    |   |
| **Total                Assets**                                                                                                                                                                         |   | $                                               | 127,997  |   |                  | $      | 113,731 |   |
|                                                                                                                                                                                                    |   |                                            |     |   |                  |   |    |   |
|                                                                                                                                                                                                    |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                                                                                                           |
| **Current                Liabilities**                                                                                                                                                                  |   |                                            |     |   |                  |   |    |   |
| Accounts                payable                                                                                                                                                                         |   | $                                               | 6,977    |   |                  | $      | 8,064   |   |
| Accrued                interest payable                                                                                                                                                                 |   |                                            | 18,221   |   |                  |   | 7,337   |   |
| Payables                to related parties                                                                                                                                                              |   |                                            | 6,723    |   |                  |   | 6,826   |   |
| Demand                Notes                                                                                                                                                                             |   |                                            | 200      |   |                  |   | 250     |   |
| Line                of Credit                                                                                                                                                                           |   |                                            | 2,076    |   |                  |   | 5,679   |   |
| Short                term convertible promissory notes, net of discount of $36,922 and                $39,633                                                                                           |   |                                            | 16,678   |   |                  |   | 13,967  |   |
| Income                taxes payable                                                                                                                                                                     |   |                                            | 1,818    |   |                  |   | 1,818   |   |
|                                                                                                                                                                                                    |   |                                            |     |   |                  |   |    |   |
| **Total                Current Liabilities**                                                                                                                                                            |   |                                            | 52,693   |   |                  |   | 43,941  |   |
| **Long                term debt, net of discounts totaling $5,235**                                                                                                                                     |   |                                            | 18,765   |   |                  |   | — |   |
|                                                                                                                                                                                                    |   |                                            |     |   |                  |   |    |   |
| **Total                liabilities**                                                                                                                                                                    |   |                                            | 71,458   |   |                  |   | 43,941  |   |
|                                                                                                                                                                                                    |   |                                            |     |   |                  |   |    |   |
| **Commitments                and contingencies**                                                                                                                                                        |   |                                            |     |   |                  |   |    |   |
| **Stockholders’                Equity**                                                                                                                                                           |   |                                            |     |   |                  |   |    |   |
| Preferred                stock, $.001 par value, 15,000,000 shares authorized,                0 shares issued and outstanding                                                            |   |                                            | —  |   |                  |   | — |   |
| Common                stock, $.001 par value, 400,000,000 shares authorized,                246,017,970 and 233,239,225 shares issued and outstanding at                respective dates |   |                                            | 246      |   |                  |   | 233     |   |
| Additional                paid-in capital                                                                                                                                                               |   |                                            | 157,482  |   |                  |   | 145,555 |   |
| Other                comprehensive income                                                                                                                                                               |   |                                            | (697     | )      |                  |   | (570    | )      |
| Accumulated                deficit                                                                                                                                                                      |   |                                            | (100,492 | )      |                  |   | (74,965 | )      |
| Treasury                stock at cost (279,200 shares)                                                                                                                                             |   |                                            | —  |   |                  |   | (463    | )      |
|                                                                                                                                                                                                    |   |                                            |     |   |                  |   |    |   |
| Total                Stockholders’ Equity                                                                                                                                                         |   |                                            | 56,539   |   |                  |   | 69,790  |   |
|                                                                                                                                                                                                    |   |                                            |     |   |                  |   |    |   |
| **Total                Liabilities and Stockholders’ Equity**                                                                                                                                     |   | $                                               | 127,997  |   |                  | $      | 113,731 |   |
|                                                                                                                                                                                                    |   |                                            |     |   |                  |   |    |   |

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**Table      of Contents**

**EARTH        BIOFUELS, INC.**

**CONSOLIDATED        STATEMENTS OF OPERATIONS**

**For        the Three Month Periods Ended March 31, 2007 and        2006**

|                                                                                                               |   |                                                                      |        |   |           |   |        |   |
|--------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|-------------|--------|----------------|--------|-------------|--------|
|                                                                                                               |   | **2007**                                                                  |        |   | **2006**       |   |
|                                                                                                               |   | **(Restated)**                                                            |        |   | **(Restated)** |   |
|                                                                                                               |   | **(Unaudited)**                                                           |        |
|                                                                                                               |   | **($                in 000’s, except per share and share amounts)** |        |
|                                                                                                               |   |                                                                      |        |   |           |   |        |   |
| **Revenue**                                                                                                        |   |                                                                      |        |   |           |   |        |   |
| Sales                revenue                                                                                       |   | $                                                                         | 6,641       |   |           | $      | 8,231       |   |
| Energy                production credits                                                                           |   |                                                                      | 4           |   |           |   | 386         |   |
|                                                                                                               |   |                                                                      |        |   |           |   |        |   |
| **Total                revenues**                                                                                  |   |                                                                      | 6,645       |   |           |   | 8,617       |   |
| **Cost                of sales**                                                                                   |   |                                                                      | 6,292       |   |           |   | 9,413       |   |
|                                                                                                               |   |                                                                      |        |   |           |   |        |   |
| **Gross                profit (loss)**                                                                             |   |                                                                      | 353         |   |           |   | (796        | )      |
| **Operating                Expenses**                                                                              |   |                                                                      |        |   |           |   |        |   |
| Compensation                (including share based compensation of $3,163 and $4,616,                respectively) |   |                                                                      | 5,114       |   |           |   | 4,616       |   |
| Other                selling, general and administrative                                                           |   |                                                                      | 3,356       |   |           |   | 2,594       |   |
| Depreciation                and amortization                                                                       |   |                                                                      | 952         |   |           |   | 374         |   |
|                                                                                                               |   |                                                                      |        |   |           |   |        |   |
| **Total                operating expenses**                                                                        |   |                                                                      | 9,422       |   |           |   | 7,584       |   |
| **Net                loss from operations**                                                                        |   |                                                                      | (9,069      | )      |           |   | (8,380      | )      |
| **Other                income (expense)**                                                                          |   |                                                                      |        |   |           |   |        |   |
| Interest                expense                                                                                    |   |                                                                      | (16,124     | )      |           |   | (75         | )      |
| Loss                on sale of fixed assets                                                                        |   |                                                                      | (120        | )      |           |   | —     |   |
| Loss                on equity investments                                                                          |   |                                                                      | (315        | )      |           |   | —     |   |
| Other                income                                                                                        |   |                                                                      | 101         |   |           |   | 43          |   |
|                                                                                                               |   |                                                                      |        |   |           |   |        |   |
| **Total                other income (expense)**                                                                    |   |                                                                      | (16,458     | )      |           |   | (32         | )      |
|                                                                                                               |   |                                                                      |        |   |           |   |        |   |
| **Loss                before provision for income tax**                                                            |   |                                                                      | (25,527     | )      |           |   | (8,412      | )      |
| Income                tax expense                                                                                  |   |                                                                      | —     |   |           |   | 454         |   |
|                                                                                                               |   |                                                                      |        |   |           |   |        |   |
| **Net                income (loss)**                                                                               |   |                                                                      | (25,527     | )      |           |   | (8,866      | )      |
| Unrealized                loss on marketable securities                                                            |   |                                                                      | (127        | )      |           |   | —     |   |
|                                                                                                               |   |                                                                      |        |   |           |   |        |   |
| Total                comprehensive loss                                                                            |   | $                                                                         | (25,654     | )      |           | $      | (8,866      | )      |
|                                                                                                               |   |                                                                      |        |   |           |   |        |   |
| **Net                income (loss) per common share:**                                                             |   |                                                                      |        |   |           |   |        |   |
| Basic                and diluted                                                                                   |   |                                                                      |        |   |           |   |        |   |
| Net                loss                                                                                            |   | $                                                                         | (.13        | )      |           | $      | (.05        | )      |
| Weighted                average shares:                                                                            |   |                                                                      |        |   |           |   |        |   |
| Basic                and diluted                                                                                   |   |                                                                      | 202,988,783 |   |           |   | 166,668,025 |   |

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**Table      of Contents**

**EARTH        BIOFUELS, INC.**

**CONSOLIDATED        STATEMENTS OF STOCKHOLDERS’ EQUITY**

**For        the Three Month Period Ended March 31, 2007**

|                                                                                                                                        |   |                                                                     |    |   |                            |   |    |                          |   |   |                             |   |   |         |    |   |            |   |    |       |   |   |     |   |   |   |    |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|---------|--------|---------------------------------|--------|---------|-------------------------------|--------|--------|----------------------------------|--------|--------|--------------|---------|--------|-----------------|--------|---------|------------|--------|--------|----------|--------|--------|--------|---------|--------|
|                                                                                                                                        |   | **Common**                                                               |    |   |                            |   |    | **Additional**                |   |   | **Other**                        |   |   |         |    |   |            |   |    |       |   |
|                                                                                                                                        |   | **Stock**                                                                |    |   | **Common**                      |   |    | **Paid**                      |   |   | **Comprehensive**                |   |   | **Treasury** |    |   | **Accumulated** |   |    |       |   |
|                                                                                                                                        |   | **Shares**                                                               |    |   | **Stock                at Par** |   |    | **in                Capital** |   |   | **Income                (Loss)** |   |   | **Stock**    |    |   | **Deficit**     |   |    | **Totals** |   |
|                                                                                                                                        |   | **(Unaudited)**                                                          |    |
|                                                                                                                                        |   | **($                in 000’s except per share and share amounts)** |    |
|                                                                                                                                        |   |                                                                     |    |   |                            |   |    |                          |   |   |                             |   |   |         |    |   |            |   |    |       |   |   |     |   |   |   |    |   |
| **Balance                12/31/06**                                                                                                         |   |                                                                     | 233,047 |   |                            | $      | 233     |                          |   | $      | 145,555                          |   |   | $            | (570    | )      |            | $      | (463    | )          |   | $      | (74,965  | )      |   | $      | 69,790  |   |
| Shares                issued for cash                                                                                                       |   |                                                                     | 3,068   |   |                            |   | 3       |                          |   |   | 1,522                            |   |   |         | — |   |            |   | — |       |   |   |     |   |   |   | 1,525   |   |
| Shares                issued for services                                                                                                   |   |                                                                     | 5,999   |   |                            |   | 6       |                          |   |   | 3,817                            |   |   |         | — |   |            |   | — |       |   |   |     |   |   |   | 3,823   |   |
| Shares                issued for exercise of warrants                                                                                       |   |                                                                     | 125     |   |                            |   | 1       |                          |   |   | —                          |   |   |         | — |   |            |   | — |       |   |   |     |   |   |   | 1       |   |
| Shares                issued for related party payables                                                                                     |   |                                                                     | 1,000   |   |                            |   | 1       |                          |   |   | 510                              |   |   |         | — |   |            |   | — |       |   |   |     |   |   |   | 511     |   |
| Unrealized                loss on marketable securities                                                                                     |   |                                                                     | — |   |                            |   | — |                          |   |   | —                          |   |   |         | (127    | )      |            |   | — |       |   |   |     |   |   |   | (127    | )      |
| Treasury                Stock                                                                                                               |   |                                                                     | 279     |   |                            |   |    |                          |   |   | —                          |   |   |         | — |   |            |   | 463     |       |   |   |     |   |   |   | 463     |   |
| Shares                issued to escrow                                                                                                      |   |                                                                     | 2,500   |   |                            |   | 2       |                          |   |   | —                          |   |   |         | — |   |            |   |    |       |   |   |     |   |   |   | 2       |   |
| Net                Changes in discounts on convertible debt and reversal of derivative                liabilities from retirements of debts |   |                                                                     | — |   |                            |   | — |                          |   |   | 6,078                            |   |   |         | — |   |            |   | — |       |   |   | —  |   |   |   | 6,078   |   |
| Net                loss                                                                                                                     |   |                                                                     | — |   |                            |   | — |                          |   |   | —                          |   |   |         | — |   |            |   | — |       |   |   | (25,527  | )      |   |   | (25,527 | )      |
|                                                                                                                                        |   |                                                                     |    |   |                            |   |    |                          |   |   |                             |   |   |         |    |   |            |   |    |       |   |   |     |   |   |   |    |   |
| **Balance                March 31, 2007 (Restated)**                                                                                   |   |                                                                     | 246,018 |   |                            | $      | 246     |                          |   | $      | 157,482                          |   |   | $            | (697    | )      |            | $      | (0      | )          |   | $      | (100,492 | )      |   | $      | 56,539  |   |
|                                                                                                                                        |   |                                                                     |    |   |                            |   |    |                          |   |   |                             |   |   |         |    |   |            |   |    |       |   |   |     |   |   |   |    |   |

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**Table      of Contents**

**EARTH        BIOFUELS, INC.**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS**

**For        the Three Month Periods Ended March 31, 2007 and        2006**

|                                                                                                     |   |                                                                      |    |   |           |   |    |   |
|----------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|---------|--------|----------------|--------|---------|--------|
|                                                                                                     |   | **2007**                                                                  |    |   | **2006**       |   |
|                                                                                                     |   |                                                                      |    |   | **(Restated)** |   |
|                                                                                                     |   | **(Restated)**                                                            |    |   |           |   |
|                                                                                                     |   | **(Unaudited)**                                                           |    |
|                                                                                                     |   | **($                in 000’s, except per share and share amounts)** |    |
|                                                                                                     |   |                                                                      |    |   |           |   |    |   |
| **OPERATING                ACTIVITIES**                                                                  |   |                                                                      |    |   |           |   |    |   |
| Net                loss                                                                                  |   | $                                                                         | (25,527 | )      |           | $      | (8,866  | )      |
| Adjustments                to reconcile net loss to cash provided by operating                activities |   |                                                                      |    |   |           |   |    |   |
| Loss                on sale of fixed assets                                                              |   |                                                                      | 121     |   |           |   | — |   |
| Depreciation                and amortization of intangibles                                              |   |                                                                      | 737     |   |           |   | 374     |   |
| Amortization                of debt issuance costs                                                       |   |                                                                      | 215     |   |           |   | — |   |
| Goodwill                impairment                                                                       |   |                                                                      | 315     |   |           |   | — |   |
| Debt                discount amortization                                                                |   |                                                                      | 3,556   |   |           |   | — |   |
| Share-based                compensation                                                                  |   |                                                                      | 3,818   |   |           |   | 4,874   |   |
| Changes                in                                                                                |   |                                                                      |    |   |           |   |    |   |
| Trade                accounts receivable                                                                 |   |                                                                      | (500    | )      |           |   | (2,596  | )      |
| Inventory                                                                                                |   |                                                                      | (17     | )      |           |   | 276     |   |
| Prepaid                expenses and other current assets                                                 |   |                                                                      | (586    | )      |           |   | (532    | )      |
| Other                assets                                                                              |   |                                                                      | (2,166  | )      |           |   | 881     |   |
| Accounts                payable and accrued expenses                                                     |   |                                                                      | (1,088  | )      |           |   | 580     |   |
| Accrued                interest                                                                          |   |                                                                      | 10,885  |   |           |   | 1,100   |   |
| Taxes                payable                                                                             |   |                                                                      | — |   |           |   | 455     |   |
| Other                liabilities                                                                         |   |                                                                      | 8       |   |           |   | (111    | )      |
|                                                                                                     |   |                                                                      |    |   |           |   |    |   |
| Net                cash used in operating activities                                                     |   |                                                                      | (10,229 | )      |           |   | (3,565  | )      |
|                                                                                                     |   |                                                                      |    |   |           |   |    |   |
| **INVESTING                ACTIVITIES**                                                                  |   |                                                                      |    |   |           |   |    |   |
| Purchases                of equity securities                                                            |   |                                                                      | (71     | )      |           |   | — |   |
| Purchases                of property, plant and equipment                                                |   |                                                                      | (2,243  | )      |           |   | (2,414  | )      |
| Investments                in and advances to related parties                                            |   |                                                                      | (2,296  | )      |           |   | 2,309   |   |
| Proceeds                from the sale of property, plant and equipment                                   |   |                                                                      | 75      |   |           |   | — |   |
| Increase                in notes receivable                                                              |   |                                                                      | (5,441  | )      |           |   | (2,828  | )      |
|                                                                                                     |   |                                                                      |    |   |           |   |    |   |
| Net                cash used in investing activities                                                     |   |                                                                      | (9,976  | )      |           |   | (2,933  | )      |
|                                                                                                     |   |                                                                      |    |   |           |   |    |   |
| **FINANCING                ACTIVITIES**                                                                  |   |                                                                      |    |   |           |   |    |   |
| Proceeds                from issuance of stock                                                           |   |                                                                      | 1,534   |   |           |   | 777     |   |
| Sales                of treasury stock                                                                   |   |                                                                      | 463     |   |           |   | — |   |
| Proceeds                from long term debt and line of credit                                           |   |                                                                      | 29,000  |   |           |   | 1,000   |   |
| Repayments                of long term debt and line of credit                                           |   |                                                                      | (8,653  | )      |           |   | (143    | )      |
| Cash                paid for debt issuance costs                                                         |   |                                                                      | (509    | )      |           |   | — |   |
|                                                                                                     |   |                                                                      |    |   |           |   |    |   |
| Net                cash provided by financing activities                                                 |   |                                                                      | 21,835  |   |           |   | 1,634   |   |
|                                                                                                     |   |                                                                      |    |   |           |   |    |   |
| **NET                INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS**                                  |   |                                                                      | 1,630   |   |           |   | (4,864  | )      |
| CASH                AND CASH EQUIVALENTS — Beginning of year                                  |   |                                                                      | 291     |   |           |   | 5,069   |   |
|                                                                                                     |   |                                                                      |    |   |           |   |    |   |
| CASH                AND CASH EQUIVALENTS — End of year                                        |   | $                                                                         | 1,921   |   |           | $      | 205     |   |
|                                                                                                     |   |                                                                      |    |   |           |   |    |   |
| **SUPPLEMENTAL                CASH FLOW DISCLOSURES:**                                                   |   |                                                                      |    |   |           |   |    |   |
| Interest                paid                                                                             |   | $                                                                         | 1,574   |   |           | $      | — |   |
| Income                taxes paid                                                                         |   |                                                                      | — |   |           |   | — |   |

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**Table      of Contents**

**EARTH        BIOFUELS, INC.**

**NOTES TO        CONSOLIDATED FINANCIAL        STATEMENTS**

**(UNAUDITED)**

**RESTATEMENT        SUMMARY**

**NOTE 1 —        BASIS OF PRESENTATION**

**NOTE 2 —        NEW ACCOUNTING PRONOUNCEMENTS**

**NOTE 3 —        GOING CONCERN**

**NOTE 4 —        RESTATEMENTS**

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**Table      of Contents**

**EARTH        BIOFUELS, INC.**

**NOTES TO        CONSOLIDATED FINANCIAL STATEMENTS — (Continued)**

|                                            |   |                                                |    |   |                                  |   |   |                                                |   |   |     |   |
|-------------------------------------------------|--------|-----------------------------------------------------|---------|--------|---------------------------------------|--------|--------|-----------------------------------------------------|--------|--------|----------|--------|
|                                            |   | **As                Reported For the Three**        |    |   | **Amount                of**          |   |   | **As                Restated For the Three**        |   |
| **Description**                                 |   | **Months                Ended March 31, 2007** |    |   | **Adjustment**                        |   |   | **Months                Ended March 31, 2007** |   |
|                                            |   | **($                in 000’s)**               |    |   | **($                in 000’s)** |   |   | **($                in 000’s)**               |   |
|                                            |   |                                                |    |   |                                  |   |   |                                                |   |   |     |   |
| Accrued                interest payable         |   | $                                                   | 10,203  |   |                                  |   | 8,018  |                                                |   | $      | 18,221   |   |
| Interest                expense                 |   | $                                                   | (8,106  | )      |                                  |   | (8,018 | )                                                   |   | $      | (16,124  | )      |
| Total                other income and (expense) |   | $                                                   | (8,440  | )      |                                  |   | (8,018 | )                                                   |   | $      | (16,458  | )      |
| Net                Income (loss)                |   | $                                                   | (17,509 | )      |                                  |   | (8,018 | )                                                   |   | $      | (25,527  | )      |
| Net                loss per common share:       |   |                                                |    |   |                                  |   |   |                                                |   |   |     |   |
| Basic                and Diluted                |   | $                                                   | (0.09   | )      |                                  |   | (0.04  | )                                                   |   | $      | (0.13    | )      |
| Accumulated                deficit              |   | $                                                   | (92,474 | )      |                                  |   | (8,018 | )                                                   |   | $      | (100,492 | )      |

**NOTE 5 —        INVESTMENTS, ADVANCES AND NOTES RECEIVABLE FROM RELATED        PARTIES**

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**Table      of Contents**

**EARTH        BIOFUELS, INC.**

**NOTES TO        CONSOLIDATED FINANCIAL STATEMENTS — (Continued)**

|                                                                                                   |   |                                             |   |                                           |   |                                  |    |   |                                  |   |    |                                  |   |   |                                  |   |   |                                                                    |
|--------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|--------|------------------------------------------------|--------|---------------------------------------|---------|--------|---------------------------------------|--------|---------|---------------------------------------|--------|--------|---------------------------------------|--------|--------|-------------------------------------------------------------------------|
|                                                                                                   |   | **Method                of**                     |   |                                           |   |                                  |    |   |                                  |   |    |                                  |   |   |                                  |
|                                                                                                   |   | **Accounting**                                   |   |                                           |   |                                  |    |   |                                  |   |    |                                  |   |   |                                  |
|                                                                                                   |   | **for                the**                       |   |                                           |   |                                  |    |   |                                  |   |    | **Total**                             |   |   |                                  |
|                                                                                                   |   | **Year                Ended December 31,**  |   |                                           |   | **Investment**                        |    |   | **Amount                of**          |   |    | **Investment**                        |   |   |                                  |
| **Description**                                                                                        |   | **2006**                                         |   | **%                Ownership**                 |   | **Amount**                            |    |   | **Advances**                          |   |    | **and                Advances**       |   |   | **Type                of Investment** |
|                                                                                                   |   |                                             |   |                                           |   | **($                in 000’s)** |    |   | **($                in 000’s)** |   |    | **($                in 000’s)** |   |   |                                  |
|                                                                                                   |   |                                             |   |                                           |   |                                  |    |   |                                  |   |    |                                  |   |   |                                  |   |   |                                                                    |
| **Investments**                                                                                        |   |                                             |   |                                           |   |                                  |    |   |                                  |   |    |                                  |   |   |                                  |   |   |                                                                    |
| Truckers                Corner Hillsboro, TX                                                           |   | Equity                                           |   | 25%                                            |   | $                                     | 1,120   |   |                                  | $      | 4,161   |                                  |   | $      | 5,281                                 |   |   | Retail                facility for Bio-diesel distribution              |
| American                Earth Dallas, TX                                                               |   | Equity-to                be consolidated in 2007 |   | Proposed                To be 51%-Start up Co. |   |                                  | 77      |   |                                  |   | — |                                  |   |   | 77                                    |   |   | Acquisitions                of retail sites for Bio-diesel distribution |
| Systems                Management Solutions, Inc. (“SMS”), San Antonio, TX            |   | Cost                                             |   | Advances-LOI                                   |   |                                  | — |   |                                  |   | 22      |                                  |   |   | 22                                    |   |   | Bio-diesel                production facility                           |
| Vertex                Processing, LP, Houston, TX                                                      |   | Cost                                             |   | Advances-LOI-51%                               |   |                                  | — |   |                                  |   | 2,497   |                                  |   |   | 2,497                                 |   |   | Bio-diesel                production facility                           |
| **Letters                of Intent**                                                                   |   |                                             |   |                                           |   |                                  |    |   |                                  |   |    |                                  |   |   |                                  |   |   |                                                                    |
| Biodiesel                Investment Group and Bunge North America, Danville,                Illinois   |   | Cost                                             |   | 10%                                            |   |                                  | 4,901   |   |                                  |   | — |                                  |   |   | 4,901                                 |   |   | Bio-diesel                production facility                           |
| Earth                Ethanol and Liquafaction Corporation, Moses Lake,                Washington  |   | Equity-to                be consolidated in 2007 |   | Proposed                to be 80%-Start up Co. |   |                                  | — |   |                                  |   | 425     |                                  |   |   | 425                                   |   |   | Ethanol                production facility                              |
| Earth                Ethanol and HPS Development, L.L.C., Plaquemines Parish,                Louisiana |   | Cost                                             |   | Advances-LOI                                   |   |                                  | — |   |                                  |   | 27,076  |                                  |   |   | 27,076                                |   |   | Ethanol                production facility                              |
| DFI-Albemarle                Bio-Refinery, Inc., North Carolina                                        |   | Cost                                             |   | Advances-LOI                                   |   |                                  | — |   |                                  |   | 3,150   |                                  |   |   | 3,150                                 |   |   | Ethanol                production facility                              |
|                                                                                                   |   |                                             |   |                                           |   |                                  |    |   |                                  |   |    |                                  |   |   |                                  |   |   |                                                                    |
| **Total                investment and advances**                                                       |   | $                                                | 6,098  |                                           |   | $                                     | 37,331  |   |                                  | $      | 43,429  |                                  |   |   |
|                                                                                                   |   |                                             |   |                                           |   |                                  |    |   |                                  |   |    |                                  |   |   |

**Investments —**

*American        Earth Fuels Company *

***Advances        on Letters of Intent —***

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**Table      of Contents**

**EARTH        BIOFUELS, INC.**

**NOTES TO        CONSOLIDATED FINANCIAL STATEMENTS — (Continued)**

**Notes        receivable from related parties —**

|                                                           |   |                                  |   |   |                                  |   |   |   |
|----------------------------------------------------------------|--------|---------------------------------------|--------|--------|---------------------------------------|--------|--------|--------|
| **Description**                                                |   | **2007**                              |   |   | **2006**                              |   |
|                                                           |   | **($                in 000’s)** |   |   | **($                in 000’s)** |   |
|                                                           |   |                                  |   |   |                                  |   |   |   |
| Truckers                Corner                                 |   | $                                     | 107    |   |                                  | $      | 104    |   |
| SMS                                                            |   |                                  | 788    |   |                                  |   | 788    |   |
| DFI                                                            |   |                                  | 2,146  |   |                                  |   | 2,120  |   |
| Apollo                                                         |   |                                  | 7,636  |   |                                  |   | 2,812  |   |
| Apollo                Affiliates                               |   |                                  | 589    |   |                                  |   | 0      |   |
| AIRO                                                           |   |                                  | 857    |   |                                  |   | 857    |   |
|                                                           |   |                                  |   |   |                                  |   |   |   |
| Total                                                          |   |                                  | 12,123 |   |                                  |   | 6,681  |   |
| Less                current portion                            |   |                                  | (857   | )      |                                  |   | (857   | )      |
|                                                           |   |                                  |   |   |                                  |   |   |   |
| Long                term notes receivable from related parties |   | $                                     | 11,266 |   |                                  | $      | 5,824  |   |
|                                                           |   |                                  |   |   |                                  |   |   |   |

**Advances        to related parties —**

**NOTE 6 —        INTANGIBLE ASSETS**

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**Table      of Contents**

**EARTH        BIOFUELS, INC.**

**NOTES TO        CONSOLIDATED FINANCIAL STATEMENTS — (Continued)**

**NOTE 7 —        DEMAND NOTES —**

**NOTE 8 —        LINE OF CREDIT**

**NOTE 9 —        LONG TERM DEBT**

|                                                     |   |                                   |   |   |
|----------------------------------------------------------|--------|----------------------------------------|--------|--------|
|                                                     |   | **March 31,                2007** |   |
|                                                     |   |                                   |   |   |
| Term                debt facilities                      |   |                                   | 24,000 |   |
| Unamortized                discounts                     |   |                                   | (5,235 | )      |
|                                                     |   |                                   |   |   |
|                                                     |   |                                   | 18,765 |   |
| Less                current installments                 |   |                                   | 0      |   |
|                                                     |   |                                   |   |   |
| Long-term                debt, less current installments |   | $                                      | 18,765 |   |
|                                                     |   |                                   |   |   |

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**Table      of Contents**

**EARTH        BIOFUELS, INC.**

**NOTES TO        CONSOLIDATED FINANCIAL STATEMENTS — (Continued)**

|                                 |   |                                      |   |   |
|--------------------------------------|--------|-------------------------------------------|--------|--------|
|                                 |   | **Debt                Outstanding**       |   |
|                                 |   | **at                March 31, 2007** |   |
|                                 |   |                                      |   |   |
| 1 year                or less   |   | $                                         | 0      |   |
| 2 years                         |   |                                      | 0      |   |
| 3 years                         |   |                                      | 24,000 |   |
| 4 years                         |   |                                      | 0      |   |
| 5 years                         |   |                                      | 0      |   |
| Thereafter                           |   |                                      | 0      |   |
|                                 |   |                                      |   |   |
| Total                future payments |   | $                                         | 24,000 |   |
|                                 |   |                                      |   |   |

**NOTE 10 —        STOCKHOLDERS’ EQUITY**

***Warrants —***

|                                                                                                                                            |   |                              |   |   |         |   |       |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|--------|--------------|--------|------------|--------|
|                                                                                                                                            |   |                              |   |   | **2006**     |   |
| **Description**                                                                                                                                 |   | **Exercise                Price** |   |   | **Warrants** |   |
|                                                                                                                                            |   |                              |   |   |         |   |       |   |
| May 4,                2006 convertible debt-(debt repaid), warrants issued to                investor                                      |   | $                                 | 2.00   |   |         |   | 920,810    |   |
| May 26,                2006 convertible debt-(debt repaid), warrants issued to investor                and                placement agent  |   | $                                 | 3.84   |   |         |   | 768,750    |   |
| June 7,                2006 convertible debt-(debt repaid), warrants issued to investor                and                placement agent  |   | $                                 | 2.93   |   |         |   | 1,545,000  |   |
| July 10,                2006 convertible debt (debt repaid), warrants issued to investor                and                placement agent |   | $                                 | 2.50   |   |         |   | 1,515,000  |   |
| July 21,2006                warrants issued for consulting fees                                                                            |   | $                                 | .25    |   |         |   | 4,000,000  |   |
| July 24,                2006 convertible debt, warrants issued to investors                                                                |   | $                                 | 2.90   |   |         |   | 9,051,725  |   |
| August 11,                2006 convertible debt, warrants issued to investors and placement                agent                           |   | $                                 | 2.90   |   |         |   | 189,655    |   |
| January 19,                2007, promissory notes, warrants issued to note holders                                                         |   | $                                 | .01    |   |         |   | 750,000    |   |
| February 28,                2007, long term debt, warrants issued to note holders                                                          |   | $                                 | .36    |   |         |   | 13,549,816 |   |
| March 23,                2007, long term debt, warrants issued to note holders                                                             |   | $                                 | .30    |   |         |   | 6,774,908  |   |

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**Table      of Contents**

**EARTH        BIOFUELS, INC.**

**NOTES TO        CONSOLIDATED FINANCIAL STATEMENTS — (Continued)**

|                                                                       |   |                                |       |   |                              |   |      |                                |   |   |    |   |
|----------------------------------------------------------------------------|--------|-------------------------------------|------------|--------|-----------------------------------|--------|-----------|-------------------------------------|--------|--------|---------|--------|
|                                                                       |   | **Number                of Shares** |       |   |                              |   |      | **Weighted                Average** |   |
|                                                                       |   | **Under                Warrant**    |       |   | **Exercise                Price** |   |      | **Exercise                Price**   |   |
|                                                                       |   |                                |       |   |                              |   |      |                                |   |   |    |   |
| Warrants                outstanding at December 31, 2006              |   |                                | 17,790,904 |   |                              | $      | .25-3.84  |                                |   | $      | .73     |   |
| Issued                                                                     |   |                                | 20,699,724 |   |                              | $      | .01-.36   |                                |   | $      | .25     |   |
| Exercised                                                                  |   |                                | (125,000   | )      |                              | $      | .01       |                                |   | $      | .01     |   |
| Expired                                                                    |   |                                | —    |   |                              |   | —   |                                |   |   | — |   |
|                                                                       |   |                                |       |   |                              |   |      |                                |   |   |    |   |
| Warrants                outstanding and exercisable at March 31, 2007 |   |                                | 38,365,628 |   |                              | $      | .01-$3.84 |                                |   | $      | .60     |   |
|                                                                       |   |                                |       |   |                              |   |      |                                |   |   |    |   |

***Share-based        Compensation —***

***Subscriptions —***

***Escrowed        Shares —***

**NOTE 11 —        RELATED PARTY TRANSACTIONS**

***Advances***

|                                                      |   |                                  |   |   |
|-----------------------------------------------------------|--------|---------------------------------------|--------|--------|
| **Description**                                           |   | **2007**                              |   |
|                                                      |   | **($                in 000’s)** |   |
|                                                      |   |                                  |   |   |
| Apollo                International Resources, Inc.  |   | $                                     | 2,648  |   |
| LNG                affiliates                             |   |                                  | 4,075  |   |
|                                                      |   |                                  |   |   |
| Total                                                     |   | $                                     | 6,723  |   |
|                                                      |   |                                  |   |   |

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**Table      of Contents**

**EARTH        BIOFUELS, INC.**

**NOTES TO        CONSOLIDATED FINANCIAL STATEMENTS — (Continued)**

**NOTE 12 —      COMMITMENTS AND CONTINGENCIES**

***Escrowed        Shares***

**NOTE 13 —        SEGMENT INFORMATION**

|                                                                   |   |                                  |   |   |                                  |   |    |                                  |   |   |    |   |
|------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|---------------------------------------|--------|---------|---------------------------------------|--------|--------|---------|--------|
|                                                                   |   | **LNG**                               |   |   | **Earth                Biofuels**     |   |    | **Consolidated**                      |   |
|                                                                   |   | **($                in 000’s)** |   |   | **($                in 000’s)** |   |    | **($                in 000’s)** |   |
|                                                                   |   |                                  |   |   |                                  |   |    |                                  |   |   |    |   |
| **Three                months ended March 31, 2007**              |   |                                  |   |   |                                  |   |    |                                  |   |   |    |   |
| Revenue                                                                |   | $                                     | 5,971  |   |                                  |   | 674     |                                  |   |   | 6,645   |   |
| Loss                from operations                                    |   | $                                     | (820   | )      |                                  |   | (8,249  | )                                     |   |   | (9,069  | )      |
| Interest                Expense                                        |   | $                                     | (139   | )      |                                  |   | (15,986 | )                                     |   |   | (16,125 | )      |
| Net                Loss for the three months ended March 31, 2007 |   | $                                     | (946   | )      |                                  |   | (24,571 | )                                     |   |   | (25,527 | )      |
| Property,                plant and equipment, net                      |   | $                                     | 11,430 |   |                                  |   | 16,952  |                                  |   |   | 28,382  |   |
| Total                Assets                                            |   | $                                     | 15,412 |   |                                  |   | 112,585 |                                  |   |   | 127.997 |   |
| Current                Liabilities                                     |   | $                                     | 9,361  |   |                                  |   | 35,314  |                                  |   |   | 44,675  |   |

**NOTE 14 —        SUBSEQUENT EVENTS**

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**Table      of Contents**

|                               |                                                                            |
|------------------------------------|---------------------------------------------------------------------------------|
| **ITEM 2.*****  *** | ***Management’s                Discussion and                Analysis.*** |

**Overview**

*Acquisition        of Apollo LNG — *

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**Table      of Contents**

**historical cost basis.**

*Continuing        Losses.*

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**Table      of Contents**

**Results        of Operations**

**Comparison        of Three Months Ended March 31, 2007**

**To        Three Months Ended March 31, 2006**

|                                                     |   |                                   |   |   |     |   |   |   |
|----------------------------------------------------------|--------|----------------------------------------|--------|--------|----------|--------|--------|--------|
|                                                     |   | **Three                Months Ended**  |   |
|                                                     |   | **March 31,                2007** |   |
|                                                     |   | **2007**                               |   |   | **2006** |   |
|                                                     |   |                                   |   |   |     |   |   |   |
| Revenues:                                                |   |                                   |   |   |     |   |   |   |
| Sales                revenue                             |   |                                   | 99     | %      |     |   | 96     | %      |
| Energy                production credits                 |   |                                   | 1      | %      |     |   | 4      |   |
|                                                     |   |                                   |   |   |     |   |   |   |
| Total                revenues                            |   |                                   | 100    | %      |     |   | 100    | %      |
| Cost                of sales                             |   |                                   | 95     | %      |     |   | 109    | %      |
|                                                     |   |                                   |   |   |     |   |   |   |
| Gross                profit                              |   |                                   | 5      | %      |     |   | (9     | )%     |
| Compensation                                             |   |                                   | 77     | %      |     |   | 54     |   |
| Other                selling, general and administrative |   |                                   | 51     | %      |     |   | 30     | %      |
| Depreciation                and amortization             |   |                                   | 1      | %      |     |   | 4      | %      |
|                                                     |   |                                   |   |   |     |   |   |   |
| Net                loss from operations                  |   |                                   | (125   | )%     |     |   | (97    | )%     |
| Net                (loss)                                |   |                                   | (384   | )%     |     |   | (123   | )%     |
|                                                     |   |                                   |   |   |     |   |   |   |

*Revenue.*

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**Table      of Contents**

*Cost        of Sales.*

*Compensation.*
*“Share-Based Payment”*

*Other        Selling, General and Administrative Expenses.*

*Depreciation        and Amortization.*

*Interest        Expense.*

**Comparison        of Three Months Ended March 31, 2006**

**To        Three Months Ended March 31, 2005**

**Liquidity        and Capital Resources**

*Overview.*

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**Table      of Contents**

***Current        and Future Financing Needs —***

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**Table      of Contents**

**Critical        Accounting Policies and Estimates**

*Revenue        Recognition*

*Business        Combinations*

*Accounting        for Stock Based Compensation*

*Accounting        for Derivatives*

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**Table      of Contents**

*Net      Loss Per Share Data*

*Reclassifications*

*Use        of Estimates*

*Impairment        of Long-Lived Assets*

**Recent        Accounting Pronouncements**

**NOTE 2 —        NEW ACCOUNTING PRONOUNCEMENTS**

**Off-Balance        Sheet Arrangements**

**Contractual        obligations**

***Current        Debt Obligations —***

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**Table      of Contents**

***Leases —***

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**Table      of Contents**

**Risk        Factors**

|   |          |                                                                                                                                                                |
|--------|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | •  | the                ability to quickly bring new production capacity on                stream;                                                                       |
|   |          |                                                                                                                                                                |
|   | •  | the                fluctuating prices of feedstock and natural gas;                                                                                                 |
|   |          |                                                                                                                                                                |
|   | •  | the                ability to raise the necessary capital to fund working capital, execute                mergers, acquisitions and asset                purchases; |

|   |          |                                                                                                                                                                   |
|--------|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | •  | the                prices at which others offer competitive services, including aggressive                price competition and discounting;                           |
|   |          |                                                                                                                                                                   |
|   | •  | actions                taken by the Federal Government or State Governments to remove subsidies                and tax credits associated with the biodiesel business; |
|   |          |                                                                                                                                                                   |
|   | •  | large                swings in the price of oil which will affect the price at which Earth                can                purchase fuel supplies;                   |
|   |          |                                                                                                                                                                   |
|   | •  | the                ability of competitors to undertake more extensive marketing                campaigns;                                                              |
|   |          |                                                                                                                                                                   |
|   | •  | the                extent, if any, to which competitors develop proprietary tools that                improve their ability to compete; and                       |
|   |          |                                                                                                                                                                   |
|   | •  | the                extent of competitors’ responsiveness to customer                needs.                                                                       |

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**Table      of Contents**

|   |          |                                                                                                                                                                                   |
|--------|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | •  | increase                Earth’s vulnerability to general adverse economic and industry                conditions;                                                                |
|   |          |                                                                                                                                                                                   |
|   | •  | limit                Earth’s ability to fund future working capital and other general corporate                requirements; and                                                 |
|   |          |                                                                                                                                                                                   |
|   | •  | limit                Earth’s flexibility in planning for, or reacting to, changes in Earth’s                business and the industry in which it                operates. |

**Forward        Looking Statements**

|   |          |                                                                                                                                                                                     |
|--------|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | •  | volatility                or decline of Earth’s stock price;                                                                                                                       |
|   |          |                                                                                                                                                                                     |
|   | •  | potential                fluctuation in quarterly results;                                                                                                                               |
|   |          |                                                                                                                                                                                     |
|   | •  | ability                of Earth to earn revenues or profits;                                                                                                                             |
|   |          |                                                                                                                                                                                     |
|   | •  | sufficiency                of revenues to cover operating costs;                                                                                                                         |
|   |          |                                                                                                                                                                                     |
|   | •  | availability                and cost of raw materials;                                                                                                                                   |
|   |          |                                                                                                                                                                                     |
|   | •  | any                impact of competition, competitive products, and                pricing;                                                                                              |
|   |          |                                                                                                                                                                                     |
|   | •  | adequacy                of capital to continue or expand its business, inability to raise                additional capital or financing to implement its business                plans; |
|   |          |                                                                                                                                                                                     |
|   | •  | ability                to commercialize its technology or to make sales;                                                                                                                 |
|   |          |                                                                                                                                                                                     |
|   | •  | overall                expected growth in the alternative fuels industry;                                                                                                                |
|   |          |                                                                                                                                                                                     |
|   | •  | changes                in interest rates and capital market conditions;                                                                                                                  |
|   |          |                                                                                                                                                                                     |
|   | •  | changes                in laws and other regulatory actions;                                                                                                                             |
|   |          |                                                                                                                                                                                     |
|   | •  | acquisitions                of business enterprises, including the ability to integrate acquired                businesses effectively;                                                  |
|   |          |                                                                                                                                                                                     |
|   | •  | litigation                with or legal claims and allegations by outside                parties; and                                                                               |

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**Table      of Contents**

|   |          |                                                                                                                                                                                                                                                         |
|--------|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | •  | other                assumptions described in this report, as well as other reports filed                with                the United States Securities and Exchange Commission, underlying                such                forward-looking statements. |

**Item 3.**
***  Controls        and Procedures***

*Extension        of Compliance Date for Management’s Report on Internal Control Over Financial        Reporting*

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**Table      of Contents**

**PART II        OTHER INFORMATION**

**Item 1.**
***  Legal        Proceedings***

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**Table      of Contents**

|                               |                                                                      |
|------------------------------------|---------------------------------------------------------------------------|
| **Item 2.*****  *** | ***Equity                Securities and Use of                Proceeds*** |

**Market        for Registrant’s Common Equity**

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**Table      of Contents**

|                                   |   |     |   |   |    |   |   |   |
|----------------------------------------|--------|----------|--------|--------|---------|--------|--------|--------|
| **Quarter                Ended**       |   | **High** |   |   | **Low** |   |
|                                   |   |     |   |   |    |   |   |   |
| March 31,                2006     |   | $        | .41    |   |    | $      | .39    |   |
| December 31,                2006  |   |     | 1.29   |   |    |   | .98    |   |
| September 30,                2006 |   |     | 2.35   |   |    |   | 2.25   |   |
| June 30,                2006      |   |     | 3.15   |   |    |   | 2.85   |   |
| March 31,                2006     |   |     | 2.65   |   |    |   | 2.44   |   |
| December 31,                2005  |   |     | 1.20   |   |    |   | .35    |   |
| September 30,                2005 |   |     | .92    |   |    |   | .24    |   |

**Holders        of Record**

**Dividends**

**Equity        Compensation Plan Information**

|                                                                                                                    |   |                                       |       |   |                                         |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|------------|--------|----------------------------------------------|--------|--------|--------|
|                                                                                                                    |   |                                       |       |   | **Number                of Securities**      |   |
|                                                                                                                    |   |                                       |       |   | **Remaining                Available for**   |   |
|                                                                                                                    |   | **Number                of Securities**    |       |   | **Future                Issuance Under**     |   |
|                                                                                                                    |   | **Issued                or Issuable Upon** |       |   | **Equity                Compensation Plans** |   |
|                                                                                                                    |   | **Exercise                of Outstanding** |       |   | **(Excluding                Securities in**  |   |
|                                                                                                                    |   | **Options,                Warrants and**   |       |   | **the                First Column of This**  |   |
| **Description**                                                                                                         |   | **Rights**                                 |       |   | **Table)**                                   |   |
|                                                                                                                    |   |                                       |       |   |                                         |   |   |   |
| Compensatory                common stock awards approved by security holders                                            |   |                                       | 5,000,000  |   |                                         |   | 0      |   |
| Compensatory                common stock awards and warrants or options not approved by security                holders |   |                                       | 14,365,812 |   |                                         |   | N/A    |   |

**Description        of Securities**

*Common        Stock*

*Preferred        Stock*

***Debt        securities and Warrants —***

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**Table      of Contents**

*“Accounting for Derivative Instruments and Certain Hedging Activities”*

*“Accounting for Derivative        Instruments and Certain Hedging Activities”*

***Registration        Rights —***

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**Table      of Contents**

***Change        in Securities and Use of Proceeds —***

|                                                                                                |   |                                   |   |   |                                   |   |   |   |
|-----------------------------------------------------------------------------------------------------|--------|----------------------------------------|--------|--------|----------------------------------------|--------|--------|--------|
|                                                                                                |   | **March 31,                2007** |   |   | **March 31,                2007** |   |
| **Description**                                                                                     |   | **Amount**                             |   |   | **Shares**                             |   |
|                                                                                                |   | **(In                000’s)**    |   |   | **(In                000’s)**    |   |
|                                                                                                |   |                                   |   |   |                                   |   |   |   |
| Shares                issued for services                                                           |   |                                   | 3,823  |   |                                   |   | 5,999  |   |
| Shares                issued related to repayment of amounts due to parent                          |   |                                   | 510    |   |                                   |   | 1,000  |   |
| Shares                issued to escrow account                                                      |   |                                   | 0      |   |                                   |   | 2,500  |   |
| Shares                issued for exercise of warrant                                                |   |                                   | 0      |   |                                   |   | 125    |   |
| Shares                issued for cash                                                               |   |                                   | 1,525  |   |                                   |   | 3,068  |   |
| Sale                of common stock held in treasury                                                |   |                                   | 463    |   |                                   |   | 279    |   |
|                                                                                                |   |                                   |   |   |                                   |   |   |   |
| Total                shares issued during the three months ended March 31,                2007 |   | $                                      | 6,321  |   |                                   |   | 12,971 |   |
|                                                                                                |   |                                   |   |   |                                   |   |   |   |

***UNREGISTERED        SALES OF EQUITY SECURITIES AND USE OF        PROCEEDS —***

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**Table      of Contents**

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**Table      of Contents**

|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | •  | On                May 4, 2006, we issued a $1.0 million convertible, secured                promissory note, bearing interest at 7%, payable within thirty days                upon                demand by the holder, and convertible into shares of our common stock                at a                conversion price of $1.086 per share. We also issued the investor a                warrant to purchase 920,810 shares of our common stock, exercisable                until May 31, 2001 at the lesser of $2.00 per share or 80% of                the average trading price of our common stock for the thirty trading                days                prior to the exercise of the warrant. We used the net proceeds from                the                sale in connection with our biodiesel and ethanol plant acquisition                strategy and for other general corporate purposes. We granted the                note                holder certain registration rights with respect to the shares of                common                stock underlying the convertible note and the warrant. The note and                warrant and a corresponding guarantee given by Apollo Resources,                our                majority stockholder, were subsequently cancelled by the holder in                connection with Apollo Resources’ closing on July 21, 2006 of a                securities purchase agreement with Greenwich Power.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | •  | On                May 26, 2006, we issued $5.0 million principal amount of                8% senior convertible promissory notes to a single institutional                investor. The notes carried an 8% coupon, payable quarterly, and                were                redeemable by us at par at any time prior to their initial maturity                date                in August 2006. The notes were not convertible until after August                2006, at                which time the maturity date was extendable to November 2006 at the                holder’s option. The notes were convertible into our common stock at a                conversion price equal to the greater of $1.00 per share or 75% of                the weighted average price per share of our common stock on a five-day                volume weighted average prior to closing. We also issued five-year                warrants to purchase 750,000 shares of common stock to the investor                and five-year warrants to purchase 18,750 shares of common stock to                our placement agent, both at an exercise price of $3.84 per share. We                used the net proceeds from the sale in connection with our biodiesel                and                ethanol plant acquisition strategy and for other general corporate                purposes. We granted the investor certain registration rights with                respect                to the shares of common stock issuable upon conversion of the convertible                notes and exercise of the warrants. The remaining unpaid principal                and                accrued and unpaid interest on these notes were repaid in full with                a                portion of the net proceeds from the senior convertible promissory                notes                we issued in July 2006. The warrants remain                outstanding. |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | •  | On                June 2, 2006, we issued a convertible note with a principal amount of                $500,000 to one individual. The note bore interest at 8% per year,                which                was payable on July 28, 2006, August 28, 2006, January 28,                2007 and April 28, 2007. The note had a maturity date of                April 28, 2007. The note was convertible into shares of our common                stock at a conversion price equal to the lesser of $0.50 per share or                70% of the weighted average price per share of our common stock.                We used                the net proceeds from the sale in connection with our biodiesel and                ethanol plant acquisition strategy and for other general corporate                purposes. We granted the note                holder                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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**Table      of Contents**

|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   | certain                registration rights with respect to the shares of common stock underlying                the convertible notes. On July 13, 2006, the holder of the note                exercised its option to convert the notes, and we issued an aggregate                of                1,000,000 shares of our common stock to such holder in exchange for                the cancellation of the note. |

|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | •  | On                June 7, 2006, we issued $10 million aggregate principal amount                of senior convertible notes to four institutional investors. The                notes                carried an 8% coupon, payable quarterly, and were redeemable by us                at par                at any time prior to their initial maturity date in September 2006.                The                notes were not convertible until after September 2006, at which time                the                maturity date was extendable to December 2006 at the holder’s option. The                notes were convertible into our common stock at a conversion price                equal                to the greater of $1.00 per share or 70% of the weighted average                price per share of our common stock on a five-day volume weighted                average                prior to closing. We also issued to the investors five-year warrants                to                purchase an aggregate of 1,500,000 shares of common stock to the                investors and five-year warrants to purchase 45,000 shares of common                stock to our placement agent, at an exercise price of $2.93 per                share. We used the net proceeds from the sale, in concert with other                funds, to continue to execute our business plan, specifically the                construction or acquisition of additional biodiesel and ethanol                facilities, and for other general corporate purposes, including working                capital. We granted the investor certain registration rights with                respect                to the shares of common stock underlying the convertible notes and                warrants. The remaining unpaid principal and accrued and unpaid interest                on these notes were repaid in full with a portion of the net proceeds                from                the senior convertible promissory notes we issued in July 2006. The                warrants remain outstanding. |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | •  | On                July 10, 2006, Earth entered into a securities purchase agreement,                pursuant to which Earth issued an 8% senior convertible note with a                principal amount of $5.0 million to one institutional investor. Earth                also issued five-year warrants to purchase an aggregate of                1,500,000 shares of common stock to the investor and five-year                warrants to purchase 15,000 shares of common stock to Earth’s                placement agent, both at an exercise price of $2.50 per share. On                July 24, 2006, Earth used a portion of the net proceeds from its                July 24, 2006 offering to repay in full the remaining unpaid                principal and accrued and unpaid interest on this note.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | •  | On                July 13, 2006, holders of convertible notes issued during January                through June of 2006, exercised their conversion option and Earth                issued                an aggregate of 3,000,000 shares of common stock in exchange for the                conversion of notes with an aggregate principal amount of                $1.5 million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | •  | On                July 24, 2006, Earth entered into a securities purchase agreement                pursuant to which Earth issued $52.5 million aggregate senior                convertible notes that are due in 2011 to eight institutional investors.                The notes initially carry an 8% coupon, payable quarterly, and are                convertible into shares of common stock at $2.90 per share. In 2007,                the coupon may decline to 6% upon Earth achieving certain financial                milestones. The notes will begin to amortize in equal, quarterly                payments                beginning in 2007. In connection with the issuance of the notes,                Earth                also issued five-year warrants to purchase 9,051,725 shares of common                stock to the investors and five-year warrants to purchase                1,357,759 shares of common stock to Earth’s placement agent, at $2.90                per share. Earth used the net proceeds from this offering to repay                in full                the remaining unpaid principal and accrued and unpaid interest on                our                $20.0 million aggregate principal amount of senior convertible                promissory notes issued in May, June and July 2006, and expects to                use the                remaining proceeds from the offering for its program of building                and                acquiring interests in biodiesel and ethanol production facilities,                and                for other general corporate purposes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | •  | In                connection with the 8% senior convertible notes issued in July, 2006,                Earth incurred loan costs in the amount of $3,452,000, which will                be                amortized over the term of the convertible notes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | •  | On                August 11, 2006, Earth entered into a securities purchase agreement                pursuant to which Earth issued $1.1 million aggregate senior                convertible notes that are due in 2011 to two institutional investors.                The                notes initially carry an 8% coupon, payable quarterly, and are convertible                into shares of common stock at $2.90 per share. In 2007, the coupon                may decline to 6% upon Earth achieving certain financial milestones.                The                notes will begin to amortize in equal, quarterly payments beginning                in                March, 2007. In connection with the issuance of the notes, Earth                also                issued five-year warrants to purchase 232,759 shares of common stock                to the investors at $2.90 per share. The shares issued to an                accredited investor included registration rights therein. As of year                end                December 31, 2006 these shares have not been registered, however, the                company will include these rights upon filing of its registration                statement to be filed during the year ended                2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

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**Table      of Contents**

|                               |                                                                |
|------------------------------------|---------------------------------------------------------------------|
| **Item 3.*****  *** | ***Defaults                upon Senior                Securities*** |

|                               |                                                                                    |
|------------------------------------|-----------------------------------------------------------------------------------------|
| **Item 4.*****  *** | ***Submission                of Matters to a Vote of Security                Holders*** |

|                               |                                   |
|------------------------------------|----------------------------------------|
| **Item 5.*****  *** | ***Other                Information*** |

|                               |           |
|------------------------------------|----------------|
| **ITEM 6.*****  *** | ***EXHIBITS*** |

|        |   |                                                                                                                                                                                                                                                                                                                                                            |
|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Exhibit** |   |                                                                                                                                                                                                                                                                                                                                                            |
| **Number**  |   | **Description**                                                                                                                                                                                                                                                                                                                                                 |
|        |   |                                                                                                                                                                                                                                                                                                                                                            |
| 3.01        |   | Certificate                of Incorporation (filed as Exhibit 3.1 to the Report on                Form 10-QSB for the period ending September 30, 2005 and                incorporated herein by reference)                                                                                                                                      |
| 3.02        |   | Bylaws                (filed as Exhibit 3.2 to the Report on Form 10-QSB for the                period ending September 30, 2005 and incorporated herein by                reference)                                                                                                                                                            |
| 10.1        |   | Merger                Agreement dated March 31, 2006 by and among Earth Biofuels, Inc.,                Southern Bio Fuels, Inc. and certain affiliates of Southern Bio Fuels,                Inc. (filed as Exhibit 10.1 to the Report on Form 8-K filed                April 10, 2006 and incorporated herein by                reference) |
| 10.2        |   | Stock                Purchase Agreement dated October 1, 2005 by and between The Wing Sail                Company and Earth Biofuels, Inc. (filed as Exhibit 10.1 to the Report                on Form 8-K filed December 14, 2005 and incorporated herein by                reference)                                                     |
| 10.3(1)     |   | Indemnification                Agreement dated September 29, 2005 by and between Meadow Springs,                Inc. (as predecessor to Earth Biofuels, Inc.) and William O. Locket,                Jr.                                                                                                                                                    |
| 10.4(1)     |   | Indemnification                Agreement dated September 29, 2005 by and between Meadow Springs,                Inc. (as predecessor to Earth Biofuels, Inc.) and Morgan                Freeman.                                                                                                                                                           |
| 10.5(1)     |   | Indemnification                Agreement dated September 29, 2005 by and between Meadow Springs,                Inc. (as predecessor to Earth Biofuels, Inc.) and Bruce                Blackwell.                                                                                                                                                          |
| 10.6(1)     |   | Lease                Agreement dated October 2005 by and between R. Bruce Blackwell and                Earth                Biofuels, LLC.                                                                                                                                                                                                                      |
| 10.7(1)     |   | Intercompany                Credit Agreement dated January 1, 2006 by and between Earth Biofuels,                Inc. and Apollo Resources International, Inc.                                                                                                                                                                                             |
| 10.8(1)     |   | Registration                Rights Agreement dated January 27, 2006 by and between Earth                Biofuels, Inc. and Tom Groos.                                                                                                                                                                                                                 |

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**Table      of Contents**

|        |   |                                                                                                                                                                                                                                                                                                                                                                                          |
|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Exhibit** |   |                                                                                                                                                                                                                                                                                                                                                                                          |
| **Number**  |   | **Description**                                                                                                                                                                                                                                                                                                                                                                               |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.9(1)     |   | Earth                Biofuels, Inc. Convertible Promissory Note dated January 27, 2006                issued by Earth Biofuels, Inc. in favor of Tom Groos.                                                                                                                                                                                                                              |
| 10.10(1)    |   | Registration                Rights Agreement dated January 30, 2006 by and between Earth                Biofuels, Inc. and Marc Weill.                                                                                                                                                                                                                                                   |
| 10.11(1)    |   | Earth                Biofuels, Inc. Convertible Promissory Note dated January 30, 2006                issued by Earth Biofuels, Inc. in favor of Marc Weill.                                                                                                                                                                                                                             |
| 10.12(1)    |   | Membership                Interest Purchase Agreement dated March 1, 2006 by and between Earth                Biofuels, Inc. and Dr. Miguel J. Dabdoub.                                                                                                                                                                                                                             |
| 10.13(1)    |   | Registration                Rights Agreement dated March 29, 2006 by and between Earth Biofuels,                Inc. and Josh Cohen.                                                                                                                                                                                                                                                     |
| 10.14(1)    |   | Earth                Biofuels, Inc. Convertible Promissory Note dated March 29, 2006                issued by Earth Biofuels, Inc. in favor of Josh Cohen.                                                                                                                                                                                                                               |
| 10.15(1)    |   | Registration                Rights Agreement dated March 31, 2006 by and between Earth Biofuels,                Inc. and Tom Groos.                                                                                                                                                                                                                                                 |
| 10.16(1)    |   | Earth                Biofuels, Inc. Convertible Promissory Note dated March 31, 2006                issued by Earth Biofuels, Inc. in favor of Tom Groos.                                                                                                                                                                                                                                |
| 10.17(1)    |   | Letter                of Intent dated June 13, 2006 by and between Earth Biofuels, Inc. and                HPS Development, L.L.C.                                                                                                                                                                                                                                                       |
| 10.17(1)    |   | Letter                of Intent dated June 13, 2006 by and between Earth Biofuels, Inc. and                HPS Development, L.L.C.                                                                                                                                                                                                                                                       |
| 10.18(1)    |   | Agreement                dated August 2, 2006 by and between Earth Biofuels, Inc. and HPS                Development, L.L.C.                                                                                                                                                                                                                                                             |
| 10.19       |   | Securities                Purchase Agreement dated April 28, 2006, by and among Earth Biofuels,                Inc. and the buyers listed on the schedule thereto (incorporated                by                reference to Exhibit 4.1 of the Current Report on Form 8-K filed                by Earth Biofuels, Inc. with the SEC on May 10,                2006).    |
| 10.20       |   | Registration                Rights Agreement dated April 28, 2006 by and among Earth Biofuels,                Inc. and the buyers listed on the schedule thereto (incorporated                by                reference to Exhibit 4.2 of the Current Report on Form 8-K filed                by Earth Biofuels, Inc. with the SEC on May 10,                2006).     |
| 10.21(1)    |   | Registration                Rights Agreement dated May 4, 2006 by and between Earth Biofuels,                Inc. and Greenwich Power, L.L.C.                                                                                                                                                                                                                                            |
| 10.22(1)    |   | Convertible                Secured Promissory Note-Bridge Loan dated May 4, 2006 issued by Earth                Biofuels, Inc. in favor of Greenwich Power, L.L.C.                                                                                                                                                                                                                       |
| 10.23(1)    |   | Warrant                to Purchase Shares of Common Stock of Earth Biofuels, Inc. dated                May 4, 2006 issued to Greenwich Power, L.L.C.                                                                                                                                                                                                                                     |
| 10.24(1)    |   | Unconditional                Guaranty of Payment and Performance dated May 4, 2006 executed by                Apollo Resources International, Inc. in favor of Greenwich Power,                L.L.C.                                                                                                                                                                                    |
| 10.25(1)    |   | Letter                of Intent dated May 13, 2006 by and between Earth Biofuels, Inc. and                Vertex Energy, LP.                                                                                                                                                                                                                                                             |
| 10.26       |   | Securities                Purchase Agreement dated May 26, 2006 by and between Earth Biofuels,                Inc. and the purchasers listed on the schedule thereto (incorporated                by                reference to Exhibit 4.1 of the Current Report on Form 8-K filed                by Earth Biofuels, Inc. with the SEC on May 31,                2006). |
| 10.27(1)    |   | Amended                and Restated Securities Purchase Agreement dated May 26, 2006 by and                between Earth Biofuels, Inc. and the purchasers listed on the schedule                thereto.                                                                                                                                                                                |
| 10.28       |   | Warrant                No. 1 to Purchase Common Stock of Earth Biofuels, Inc. dated                May 26, 2006, issued to Evolution Master Fund, Ltd. (incorporated by                reference to Exhibit 4.3 of the Current Report on Form 8-K filed                by Earth Biofuels, Inc. with the SEC on May 31,                2006).                         |
| 10.29(1)    |   | Warrant                No. 1r to Purchase Common Stock of Earth Biofuels, Inc. dated                May 26, 2006 issued to Evolution Master Fund, Ltd.                                                                                                                                                                                                                              |
| 10.30(1)    |   | Warrant                No. 2 to Purchase Common Stock of Earth Biofuels, Inc. dated                May 26, 2006 issued to Cowen & Company                LLC.                                                                                                                                                                                                              |
| 10.31       |   | 8%                Senior Convertible Note dated May 26, 2006 issued by Earth Biofuels,                Inc. in favor of Evolution Master Fund, Ltd. (incorporated by reference                to                Exhibit 4.2 of the Current Report on Form 8-K filed by Earth                Biofuels, Inc. with the SEC on May 31,                2006).                   |

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**Table      of Contents**

|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|-------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Exhibit** |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **Number**  |   | **Description**                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.32       |   | Registration                Rights Agreement dated May 26, 2006 by and between Earth Biofuels,                Inc. and the purchasers listed on the signature pages thereto                (incorporated by reference to Exhibit 4.4 of the Current Report on                Form 8-K filed by Earth Biofuels, Inc. with the SEC on May 31,                2006).                                                                       |
| 10.33(1)    |   | Amended                and Restated Registration Rights Agreement dated May 26, 2006 by and                between Earth Biofuels, Inc. and the purchasers listed on the signature                pages thereto.                                                                                                                                                                                                                                       |
| 10.34(1)    |   | Registration                Rights Agreement dated June 2, 2006 by and between Earth Biofuels,                Inc. and Marc Weill.                                                                                                                                                                                                                                                                                                                     |
| 10.35(1)    |   | Earth                Biofuels, Inc. Convertible Promissory Note dated June 2, 2006 issued                by Earth Biofuels, Inc. in favor of Marc Weill.                                                                                                                                                                                                                                                                                               |
| 10.36(1)    |   | Convertible                Promissory Note, dated May 31, 2006, made by Albemarle Bio-Refinery,                Inc. in favor of Earth Biofuels, Inc.                                                                                                                                                                                                                                                                                                   |
| 10.37(1)    |   | Convertible                Promissory Note, dated July 19, 2006, made by Albemarle Bio-Refinery,                Inc. in favor of Earth Biofuels, Inc.                                                                                                                                                                                                                                                                                                  |
| 10.38       |   | Securities                Purchase Agreement dated June 7, 2006 by and among Earth Biofuels,                Inc. and the purchasers listed on the schedule thereto (incorporated                by                reference to Exhibit 4.1 of the Current Report on Form 8-K filed                by Earth Biofuels, Inc. with the SEC on June 12,                2006).                                                                |
| 10.39       |   | Registration                Rights Agreement dated June 7, 2006, by and among Earth Biofuels,                Inc. and the purchasers listed on the schedule thereto (incorporated                by                reference to Exhibit 4.8 of the Current Report on Form 8-K filed                by Earth Biofuels, Inc. with the SEC on June 12,                2006).                                                               |
| 10.40       |   | Warrant                No. 1 to Purchase Common Stock of Earth Biofuels, Inc. dated                June 7, 2006 issued to Capital Ventures International (incorporated                by reference to Exhibit 4.6 of the Current Report on Form 8-K                filed by Earth Biofuels, Inc. with the SEC on June 12,                2006).                                                                                    |
| 10.41(1)    |   | Warrant                No 1r to Purchase Common Stock of Earth Biofuels, Inc. dated June 7,                2006 issued to Capital Ventures International.                                                                                                                                                                                                                                                                                              |
| 10.42       |   | 8%                Senior Convertible Note dated June 7, 2006 issued by Earth Biofuels,                Inc. in favor of Capital Ventures International (incorporated by                reference                to Exhibit 4.3 of the Current Report on Form 8-K filed by Earth                Biofuels, Inc. with the SEC on June 12, 2006).                                                                                            |
| 10.43       |   | Warrant                No. 1 to Purchase Common Stock of Earth Biofuels, Inc. dated                June 7, 2006 issued to Castlerigg Master Investments Ltd.                (incorporated by reference to Exhibit 4.5 of the Current Report on                Form 8-K filed by Earth Biofuels, Inc. with the SEC on June 12,                2006)                                                                                 |
| 10.44       |   | 8%                Senior Convertible Note dated June 7, 2006 issued by Earth Biofuels,                Inc. in favor of Castlerigg Master Investments, Ltd (incorporated                by                reference to Exhibit 4.2 of the Current Report on Form 8-K filed                by Earth Biofuels, Inc. with the SEC on June 12,                2006).                                                                         |
| 10.45       |   | Warrant                No. 1 to Purchase Common Stock of Earth Biofuels, Inc. dated                June 7, 2006 issued to Radcliffe SPC, Ltd for and on behalf of the                Class A Convertible Crossover Segregated Portfolio (incorporated by                reference to Exhibit 4.7 of the Current Report of Form 8-K filed                by Earth Biofuels, Inc. with the SEC on June 12,                2006) |
| 10.46(1)    |   | Warrant                No 1r to Purchase Common Stock of Earth Biofuels, Inc. dated June 7,                2006 issued to Radcliffe SPC, Ltd. for and on behalf of the Class A                Convertible Crossover Segregated Portfolio.                                                                                                                                                                                                         |
| 10.47       |   | 8%                Senior Convertible Note dated June 7, 2006 issued by Earth Biofuels,                Inc. in favor of Radcliffe SPC, Ltd. for and on the behalf of the                Class A Convertible Crossover Segregated Portfolio (incorporated by                reference to Exhibit 4.4 of the Current Report on Form 8-K filed                by Earth Biofuels, Inc. with the SEC on June 12,                2006).   |
| 10.48(1)    |   | Warrant                No. 1 to Purchase Common Stock of Earth Biofuels, Inc. dated                June 7, 2006 issued to Cowen & Company                LLC.                                                                                                                                                                                                                                                                            |
| 10.49(1)    |   | Warrant                No. 1r to Purchase Common Stock of Earth Biofuels, Inc. dated                June 7, 2006 issued to Cowen & Company                LLC.                                                                                                                                                                                                                                                                           |
| 10.50(1)    |   | Consulting                Agreement dated June 9, 2006 by and between Earth Biofuels, Inc. and                Herb Meyer.                                                                                                                                                                                                                                                                                                                              |
| 10.51(1)    |   | Securities                Purchase Agreement dated July 10, 2006 by and between Earth Biofuels,                Inc. and the purchasers signatory                thereto.                                                                                                                                                                                                                                                                               |

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**Table      of Contents**

|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Exhibit** |   |                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| **Number**  |   | **Description**                                                                                                                                                                                                                                                                                                                                                                                                                         |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.52(1)    |   | Registration                Rights Agreement dated July 10, 2006 by and between Earth Biofuels,                Inc. and the purchasers signatory thereto.                                                                                                                                                                                                                                                                          |
| 10.53(1)    |   | 8%                Senior Convertible Note dated July 11, 2006 issued by Earth Biofuels,                Inc. to Castlerigg Master Investments Ltd.                                                                                                                                                                                                                                                                                  |
| 10.54(1)    |   | Warrant                No. 1 to Purchase Common Stock of Earth Biofuels, Inc. dated                July 11, 2006 issued to Castlerigg Master Investments                Ltd.                                                                                                                                                                                                                                                  |
| 10.55(1)    |   | Warrant                No. 2 to Purchase Common Stock of Earth Biofuels, Inc. dated                July 11, 2006 issued to Castlerigg Master Investments                Ltd.                                                                                                                                                                                                                                                  |
| 10.56(1)    |   | Warrant                No. 2 to Purchase Common Stock of Earth Biofuels, Inc. dated                July 11, 2006 issued to Cowen & Company                LLC.                                                                                                                                                                                                                                                       |
| 10.57(1)    |   | Registration                Rights Agreement dated July 21, 2006 by and between Apollo Resources                International, Inc. and Greenwich Power, LLC and acknowledged by                Earth                Biofuels, Inc.                                                                                                                                                                                                |
| 10.58(1)    |   | Registration                Rights Agreement dated July 21, 2006 by and between Apollo Resources                International, Inc. Greenwich Power II, LLC and acknowledged by Earth                Biofuels, Inc.                                                                                                                                                                                                                |
| 10.59(1)    |   | Registration                Rights Agreement dated July 21, 2006 by and between Earth Biofuels,                Inc. and Lance A Bakrow.                                                                                                                                                                                                                                                                                            |
| 10.60(1)    |   | Warrant                to Purchase Shares of Common Stock of Earth Biofuels, Inc. dated                July 21, 2006 to Lance A. Bakrow.                                                                                                                                                                                                                                                                                           |
| 10.61       |   | Securities                Purchase Agreement dated July 24, 2006 by and among Earth Biofuels,                Inc. and the buyers listed on the schedule thereto (incorporated                by                reference to Exhibit 4.1 of the Current Report on Form 8-K filed                by Earth Biofuels, Inc. with the SEC on July 25,                2006).                                               |
| 10.62       |   | Registration                Rights Agreement dated July 24, 2006 among Earth Biofuels, Inc. and                the buyers listed on the schedule thereto (incorporated by reference                to                Exhibit 4.2 of the Current Report on Form 8-K filed by Earth                Biofuels, Inc. with the SEC on July 25, 2006).                                                                     |
| 10.63(1)    |   | Lock-Up                Letter dated July 24, 2006 from Apollo Resources International,                Inc.                                                                                                                                                                                                                                                                                                                         |
| 10.64(1)    |   | Lock-Up                Letter dated July 24, 2006 from Dennis G. McLaughlin                III.                                                                                                                                                                                                                                                                                                                                    |
| 10.65(1)    |   | Warrant                No. 3 to Purchase Common Stock of Earth Biofuels, Inc. dated                July 24, 2006 by Cowen & Company LLC.                                                                                                                                                                                                                                                                             |
| 10.66       |   | Form                of Warrant to Purchase Common Stock of Earth Biofuels, Inc. dated                July 24, 2006 (incorporated by reference to Exhibit 4.4 of the                Current Report on Form 8-K filed by Earth Biofuels, Inc. with the SEC                on July 25, 2006).                                                                                                                          |
| 10.67       |   | Form                of Notes dated as of July 24, 2006 issued by Earth Biofuels, Inc.                (incorporated by reference to Exhibit 4.3 on the Current Report on                Form 8-K filed by Earth Biofuels, Inc. with the SEC on July 25,                2006).                                                                                                                                        |
| 10.68       |   | Merger                Agreement, dated March 31, 2006, by and between Earth Biofuels,                Southern Bio Fuels, Inc., Southern Bio Fuels, LLC, and the other                members                and individuals party thereto (incorporated by reference to                Exhibit 10.1 of the Current Report on Form 8-K filed by Earth                Biofuels, Inc. with the SEC on April 10, 2006). |
| 10.69(1)    |   | Securities                Purchase Agreement, dated August 19, 2005, by and among Apollo                Resources International, Inc., Tommy Johnson, Bruce Blackwell, William                H.                Webster and Robert Glenn.                                                                                                                                                                                          |
| 10.70(1)    |   | Purchase                and Sale Agreement dated February 25, 2005 by and between Earth                Biofuels, Inc., R. Bruce Blackwell, Tommy Johnson, Robert Glenn,                William                Webster and Apollo Resources International, Inc.                                                                                                                                                                     |
| 10.71(1)    |   | Promissory                Note issued on March 2, 2006 to Southern Bio Fuels,                LLC.                                                                                                                                                                                                                                                                                                                                  |
| 10.72(1)    |   | Commercial                Guaranty made on March 2, 2006 by Dennis G. McLaughlin, III in favor                of Southern Biofuels, LLC.                                                                                                                                                                                                                                                                                           |
| 10.73(1)    |   | Promissory                Note issued on March 31, 2006 to Southern Bio Fuels,                LLC.                                                                                                                                                                                                                                                                                                                                 |
| 10.74(1)    |   | Commercial                Guaranty made on March 31, 2006 by Dennis G. McLaughlin, III in favor                of Southern Bio Fuels, LLC.                                                                                                                                                                                                                                                                                         |

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**Table      of Contents**

|          |   |                                                                                                                                                                                                                                                                                                         |
|---------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Exhibit**   |   |                                                                                                                                                                                                                                                                                                         |
| **Number**    |   | **Description**                                                                                                                                                                                                                                                                                              |
|          |   |                                                                                                                                                                                                                                                                                                         |
| 10.75(1)      |   | Commercial                Guaranty made on March 31, 2006 by R. Bruce Blackwell in favor of                Southern Bio Fuels, LLC.                                                                                                                                                                     |
| 10.76(1)      |   | Commercial                Guaranty made on March 31, 2006 by Tommy Johnson in favor of Southern                Bio Fuels, LLC.                                                                                                                                                                          |
| 10.77(1)      |   | Earth                Biofuels, Inc. 2006 Stock Option and Award Plan effective April 15,                2006.                                                                                                                                                                                           |
| 10.78(1)      |   | Sublicense                Agreement dated April 1, 2006 by and between Earth Biofuels, Inc. and                Biodiesel Venture, L.P.                                                                                                                                                                  |
| 10.79(1)      |   | Securities                Purchase Agreement dated August 11, 2006 by and among Earth Biofuels,                Inc. and the buyers listed on the schedule.                                                                                                                                              |
| 10.80(1)      |   | Revised                Schedule of buyers on Securities Purchase Agreement dated August 11,                2006.                                                                                                                                                                                        |
| 10.81(1)      |   | Registration                Rights Agreement dated August 11, 2006 among Earth Biofuels, Inc. and                the buyers listed on the schedule.                                                                                                                                                     |
| 10.82(1)      |   | Form                of Notes dated as of August 11, 2006 issued by Earth Biofuels, Inc.                with Whalehaven Capital Fund Ltd.                                                                                                                                                           |
| 10.83(1)      |   | Form                of Notes dated as of August 11, 2006 issued by Earth Biofuels Inc.                with Gundyco ITF Excalibur Ltd Partnership.                                                                                                                                                       |
| 10.84(1)      |   | Form                of Warrant to Purchase Common Stock of Earth Biofuels, Inc. dated                August 11, 2006, with Whalehaven Capital                Fund Ltd.                                                                                                                             |
| 10.85(1)      |   | Form                of Warrant to Purchase Common Stock of Earth Biofuels, Inc. dated                August 11, 2006, with Gundyco ITF Excalibur Ltd                Partnership.                                                                                                                        |
| 10.86(1)      |   | Form                of Warrant to purchase Common Stock of Earth Biofuels, Inc. dated                July 21, 2006 with Lance Bakrow, and Consulting Agreement with Lance                Bakrow.                                                                                                        |
| 10.87(2)      |   | Share                Exchange Agreement effective as of November 17, 2006, by and between                Earth Biofuels, Inc., a Delaware corporation (“Earth Biofuels”) and Apollo                Resources International, Inc., a Utah corporation                (“Apollo”). |
| 10.88         |   | Acquisition                Agreement between Liquafaction Corporation, et al and Earth Ethanol                (incorporated by reference to Exhibit 1.01 of the Current Report on                Form 8-K filed by Earth Biofuels, Inc. with the SEC on                December 21, 2006).    |
|  **10.89 |   | Pledge                Agreement, Promissory Notes and Warrant Agreements with and from                Two                Ponds, Gilcreast and Bryant Russell Construction                                                                                                                                    |
| 11(3)         |   | Code                of Ethics                                                                                                                                                                                                                                                                                |
| 12(3)         |   | Subsidiaries                                                                                                                                                                                                                                                                                                 |
| 13(3)         |   | Forbearance                and Amendment Agreement and related Security and Subsidiary                Agreements                                                                                                                                                                                             |
| 14(3)         |   | Letter                from Nexxus re offer to Capitalize Biofuels with $150 million in                Exchange for Common Stock and Escrow Agreement dated January 9,                2007                                                                                                          |
| 15(3)         |   | Credit                Agreement dated March 23 2007 by and between Durant Biofuels, LLC                and                Lenders and related Amendment No. 1, Amended and Restated Collateral                Agreement, and Warrant Purchase and Registration Rights                Agreement          |
| 16(3)         |   | Credit                Agreement dated February 28, 2007 by and between Earth LNG, Inc. and                Lenders, and related Guarantee and Collateral Agreement and Warrant                Purchase and Registration Rights Agreement                                                                 |
| 17(3)         |   | Loan                and Security Agreement with Greenfield Commercial Credit LLC dated                March 1, 2007, and related Revolving Credit Loan note and                Guaranty                                                                                                                 |
| 18(3)         |   | Report                of Independent Registered Public Accounting Firm to the audit committee                of                Earth LNG, Inc.                                                                                                                                                               |
|  *31.1   |   | Certification                of Chief Executive Officer pursuant to Rule 13a-14(a) under the                Securities Act of 1934.                                                                                                                                                                     |
|  *31.2   |   | Certification                of Chief Financial Officer pursuant to Rule 13a-14(a) under the                Securities Act of 1934.                                                                                                                                                                     |

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**Table      of Contents**

|        |   |                                                                                                                                                                                                       |
|-------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Exhibit** |   |                                                                                                                                                                                                       |
| **Number**  |   | **Description**                                                                                                                                                                                            |
|        |   |                                                                                                                                                                                                       |
|  *32.1 |   | Certification                of Chief Executive Officer pursuant to 18 U.S.C., Section 1350, as                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of                2002. |
|  *32.2 |   | Certification                of Chief Financial Officer pursuant to 18 U.S.C., Section 1350, as                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of                2002. |

|    |   |                             |
|---------|--------|----------------------------------|
| *  |   | Filed                herewith.   |
|    |   |                             |
| **      |   | Previously                filed. |

|   |   |                                                                                       |
|--------|--------|--------------------------------------------------------------------------------------------|
| +      |   |  Management                contract, compensatory plan or                arrangement. |

|   |   |                                                                                                                                                                                                       |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)    |   | Filed                as an exhibit to the registrants Report on Form 10-QSB for the period                ending September 30, 2006 filed with the SEC on November 21,                2006. |
|   |   |                                                                                                                                                                                                       |
| (2)    |   | Filed                as an exhibit to the registrant’s Current Report on Form 8-K filed                with the SEC on November 22, 2006                                                   |
|   |   |                                                                                                                                                                                                       |
| (3)    |   | Filed                as an exhibit to the registrants Report on Form 10-KSB for the period                ending December 31, 2006 filed with the SEC on May 18,                2007.       |

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**Table      of Contents**

**SIGNATURE**

|   |   |                                                         |
|--------|--------|--------------------------------------------------------------|
|   |   | /s/  Dennis                G. McLaughlin, III |