(TSX-V: MPE)
Last Close: November 7, 2008 - $0.13
Shares Issued: 56,511,127
CALGARY, Nov. 10 /CNW/ - Maple Leaf Reforestation Inc.(TSX-V-MPE) (the "Company" or "Maple Leaf") is pleased to report the following update from its Alfalfa operations in Xinjiang.
In October the Company shipped 130 tonnes of alfalfa to various Chinese purchasers at a purchase price of $280/tonne Cdn ($1,400 Rmb), resulting in revenues to Maple Leaf of $36,400 Cdn ($182,000 Rmb). For November the Company is in the process of sending out 660 tonnes of alfalfa at an average purchase price of $400/tonne Cdn ($2000 Rmb) providing revenues of $282,000 Cdn ($1.41 million Rmb). The increase in purchase price is due to positive results from recent testing of the Company's alfalfa product which was done by local authorities. The testing showed that the Company's alfalfa has a very high protein content of 16.5%, which has thereby increased demand. The recent "contaminated milk" issue in China has also forced dairy producers to look for feedstock with high nutrient levels, thus increasing the value of such products. These events have allowed Maple Leaf to forge ongoing alliances with various major alfalfa consumers.
The November shipments of 660 tonnes are being made to the following companies:
- 360 tonnes to Guandong Wen's Foodstuffs Group Co. Ltd. at a purchase price of $450/tonne Cdn ($2,250 Rmb); - 200 tonnes to Inner Mongolia Yili Industrial Group Co. Ltd. at a purchase price of $400/tonne Cdn ($2,000 Rmb); and - 100 tonnes to Heibei Kai Te Group Co. Ltd. at a purchase price of $400/tonne Cdn ($2,000 RMB).
A contract for a further 6,000 tonnes of paddy feedstock valued at $400,000 Cdn ($2 million Rmb) has been agreed to between the Company and Guandong Wen's Foodstuffs Group Co. Ltd. The Company's newly developed relationships with Guangdong Wen's Foodstuffs Group Co. Ltd., Inner Mongolia Yili Industrial Group Co. Ltd. and Heibei Kai Te Group Co. Ltd. (the "Purchasers") are extremely encouraging as they are each companies with revenues exceeding $20 million Cdn ($100 million RMB). Mr. Raymond Lai, Maple Leaf's President and CEO is confident that the quality of its alfalfa product will impress the Purchasers and lead to further purchase contracts being entered. Mr. Lai comments that the extremely positive results of the tests conducted on its alfalfa product are being noticed, as the Company has also been approached about entering purchase contracts by other alfalfa consumers such as Sichuan New Hope Group Co. Ltd.
About Maple Leaf Reforestation Inc.
Maple Leaf is a Canadian company operating a large-scale forest nursery whose primary focus is growing value-added tree seedlings and alfalfa feedstock alongside landscaping and nursery products in China. In addition, the multi-faceted Xinjiang Yellowhorn tree project will provide for the manufacture of biodiesel fuel. Reforestation has been identified as a critical strategy to help manage China's troubling environmental issues, namely pollution and desertification. Maple Leaf currently has over 6 million varieties of seedlings under cultivation at its nursery facility that includes a 110,000-square foot greenhouse located in Liang Cheng, Inner Mongolia, China.
Maple Leaf is a wholly-owned foreign enterprise ("WOFE"), which allows Maple Leaf to control 100% of the direction and operations of the company in China while permitting the cash generated from operations in China to flow back to Canada.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Certain statements in this news release including (i) 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.