(TSX-V: MPE) Last Close: August 18 2008 - $0.22 Shares Issued: 56,482,327
CALGARY, Aug. 19 /CNW/ - Raymond Lai, President and CEO of Maple Leaf Reforestation Inc. (TSX-V: MPE) ("Maple Leaf" or the "Company") is pleased to announce that an agreement has been reached with the Government of Liangcheng County of Inner Mongolia, China (the "County") to set up a program to promote its seedling sales to various counties in Inner Mongolia, as follows:
1. Initially, an Exhibition will be hosted at MPE's Inner Mongolia
greenhouse from August 25th to September 1st, 2008 (the
"Exhibition"). The Exhibition will be attended by forestry officials
from Counties in the region to introduce them to MPE's Canadian tree
growing technology and the various types of Canadian tree species
available to them;
2. The County will purchase all of MPE's current stock of Chinese Pine,
Scotts Pine and Jack Pine seedlings immediately after the Exhibition,
totaling between 350,000 to 500,000 seedlings, valued at
approximately $350,000RMB to $500,000RMB (CDN$53,000 to CDN$76,000);
3. The County will also enter a formal agreement with MPE following the
Exhibition to purchase at least 50% of the greenhouse capacity
commencing in 2009 (the "Purchase Agreement"). This will consist of a
variety of seedlings as specified by the County. This represents
sales of about 12 million seedlings a year, valued at approximately
$12 million RMB (CDN$1.8 million). The formal details and duration of
the Purchase Agreement will be finalized upon the completion of the
Exhibition.
Mr. Raymond Lai, President and CEO of Maple Leaf Reforestation Inc. stated:
"We are very excited about this firm commitment and support from the Government of Liangcheng County. We are hopeful and optimistic that this may lead to more purchase contacts with Chinese Government sectors. The Purchase Agreement combined with the Cixi contract (see the news release dated July 25, 2008) means that the greenhouse capacity is fully committed for the 2009 growing cycles, representing revenue of about CDN $4 million to MPE. Along with this major development, the Xinjiang Yellowhorn Tree Project and MPE's Alfalfa Project are all on track. As a result, the Company's management is looking at plans for future expansion much earlier than expected. Further news releases will be made in the near future regarding other developments."
About Maple Leaf Reforestation Inc.
Maple Leaf is a Canadian Public Company operating a large-scale forest nursery whose primary focus is growing and supplying value-added tree seedlings and alfalfa feedstock as well as providing landscaping and nursery products in China. In addition, the multi-faceted Xinjiang Yellowhorn tree project will provide for the manufacture of biodiesel fuel, and various other products.
Reforestation has been identified as a critical step in managing China's deeply troubling desertification and soil erosion problem. Maple Leaf currently has millions of Canadian tree seedlings under cultivation at its 110,000 square foot greenhouse nursery facility located in Liangcheng County, Inner Mongolia, China.
As a wholly-owned foreign enterprise ("WOFE"), Maple Leaf controls 100% of the direction and operations of the company in China and allows all revenues generated from operations in China to flow back to Canada.
Should you wish to receive Company news via email, please email
catarina@chfir.com and specify "Maple Leaf Reforestation Inc."
in the subject line or contact the Company directly.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Certain statements in this news release including statements that may contain words such as "anticipate", "could", "expect", "seek", "may" "intend", "will", "believe", "should", "project", "forecast", "plan" and similar expressions, including the negatives thereof, (ii) statements that are based on current expectations and estimates about the markets in which Maple Leaf operates and (iii) statements of belief, intentions and expectations about developments, results and events that will or may occur in the future, constitute "forward-looking statements" and are based on certain assumptions and analysis made by Maple Leaf. Forward-looking statements in this news release include, but are not limited to, statements with respect to future capital expenditures, including the amount, nature and timing thereof; other development trends within the China's seedling industry; business strategy; expansion and growth of Maple Leaf's business and operations and other such matters. Such forward-looking statements are subject to important risks and uncertainties, which are difficult to predict and that may affect Maple Leaf's operations, including, but are not limited to: the impact of general economic conditions; industry conditions; government and regulatory developments; seedling product supply and demand; competition; and Maple Leaf's ability to attract and retain qualified personnel. Maple Leaf's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do transpire or occur, what benefits Maple Leaf will derive there from. Subject to applicable law, Maple Leaf disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
All forward-looking statements contained in this document are expressly qualified by this cautionary statement. Further information about the factors affecting forward-looking statements is available in other disclosure documents of Maple Leaf which have been filed with Canadian provincial securities commissions and are available on www.sedar.com.
%SEDAR: 00022303E