PACIFIC ETHANOL
RESUMES PRODUCTION AT MAGIC VALLEY FACILITY

Sacramento, CA, January 6, 2010 – Pacific Ethanol, Inc. (NASDAQ GM: PEIX), (the
“Company”), announced today that it has resumed production at its 60 million gallon per year
Magic Valley facility located in Burley, Idaho. In February 2009, the Company suspended
production at the Magic Valley facility due to extended unfavorable market conditions. In May
2009, the Company’s subsidiaries which own its four ethanol production facilities, including the
Magic Valley plant, filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in
the District of Delaware in an effort to restructure their indebtedness. In December 2009, the
Company obtained necessary court and lender approvals to resume operations at the Magic
Valley facility. The facility has completed all necessary safety and startup activities and is now
producing and selling ethanol and feed products.

“We are pleased to restart our Magic Valley facility and we are grateful for the cooperation our
lenders and other stakeholders have extended,” said Neil Koehler, the Company’s Chief
Executive Officer, “the restart of the facility has also been well received by the local
community.”

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
With the exception of historical information, the matters discussed in this press release are
forward-looking statements that involve a number of risks and uncertainties. The actual future
results of Pacific Ethanol could differ from those statements. Factors that could cause or
contribute to such differences include, but are not limited to, sustained improvement in market
conditions for producing ethanol; and the factors contained in the “Risk Factors” section of
Pacific Ethanol’s Form 10-K filed with the Securities and Exchange Commission on March 31,
2009 and the “Risk Factors” section of Pacific Ethanol’s Form 10-Q filed with the Securities and
Exchange Commission on November 9, 2009.