diff --git a/Gruntfile.js b/Gruntfile.js
index a9e2b22..6dfbf90 100644
--- a/Gruntfile.js
+++ b/Gruntfile.js
@@ -33,7 +33,7 @@ module.exports = function(grunt) {
       test: {
         flatten: true,
         expand: true,
-        src: ['test/fixtures/*.txt'],
+        src: ['test/fixtures/*.{txt,bin}'],
         dest: 'tmp/',
       },
     },
@@ -56,6 +56,12 @@ module.exports = function(grunt) {
         },
         src: ['tmp/international.txt']
       },
+      binary_options: {
+	options: {
+          encoding: 'binary'
+        },
+        src: ['tmp/binary.bin']
+      }
     },
 
     // Unit tests.
diff --git a/README.md b/README.md
index 95972c1..cdc72f5 100644
--- a/README.md
+++ b/README.md
@@ -56,7 +56,7 @@ grunt.initConfig({
 Type: `String`
 Default value: `'utf8'`
 
-The encoding of the file contents.
+The encoding of the file contents. Possible values `'utf8'`, `'ascii'` or `'binary'`.
 
 #### options.algorithm
 Type: `String`
diff --git a/package.json b/package.json
index a33eb2d..9d72238 100644
--- a/package.json
+++ b/package.json
@@ -1,7 +1,7 @@
 {
   "name": "grunt-rev",
   "description": "Static file asset revisioning through content hashing",
-  "version": "0.1.0",
+  "version": "0.1.1",
   "homepage": "https://github.com/cbas/grunt-rev",
   "author": {
     "name": "Sebastiaan Deckers",
@@ -29,13 +29,14 @@
     "test": "grunt test"
   },
   "devDependencies": {
+    "grunt": "0.4.0",
+    "grunt-contrib-clean": "0.4.0rc6",
     "grunt-contrib-copy": "0.4.0",
     "grunt-contrib-jshint": "0.1.1rc6",
-    "grunt-contrib-clean": "0.4.0rc6",
-    "grunt-contrib-nodeunit": "0.1.2rc6",
-    "grunt": "0.4.0rc6"
+    "grunt-contrib-nodeunit": "^0.4.1",
+    "nodeunit": "^0.9.1"
   },
   "keywords": [
     "gruntplugin"
   ]
-}
\ No newline at end of file
+}
diff --git a/tasks/rev.js b/tasks/rev.js
index f6f77c2..f9959cf 100644
--- a/tasks/rev.js
+++ b/tasks/rev.js
@@ -17,7 +17,8 @@ module.exports = function(grunt) {
   function md5(filepath, algorithm, encoding, fileEncoding) {
     var hash = crypto.createHash(algorithm);
     grunt.log.verbose.write('Hashing ' + filepath + '...');
-    hash.update(grunt.file.read(filepath), fileEncoding);
+    //set encoding to null because in other case grunt.file.read use utf8 by default
+    hash.update(grunt.file.read(filepath, {encoding: null}), fileEncoding);
     return hash.digest(encoding);
   }
 
diff --git a/test/fixtures/binary.bin b/test/fixtures/binary.bin
new file mode 100644
index 0000000..0ee99d2
Binary files /dev/null and b/test/fixtures/binary.bin differ
diff --git a/test/rev_test.js b/test/rev_test.js
index b876642..97ce49a 100644
--- a/test/rev_test.js
+++ b/test/rev_test.js
@@ -50,5 +50,12 @@ exports.rev = {
     test.ok(exists, '8 character MD5 hash prefix for international content');
 
     test.done();
+  },
+  binary_options: function(test) {
+   test.expect(1);
+   var exists = grunt.file.exists('tmp/2ac69376.binary.bin');
+   test.ok(exists, '8 character MD5 hash prefix for binary content');
+   
+   test.done();
   }
 };